Listing Agent vs. Selling Agent: A Real Estate Misnomer

Listing agent vs. selling agent: the two titles are often used synonymously, but these real estate professionals actually sit on opposite sides of the negotiating table.

The confusion started a long time ago with a few letters at the end of the root word “sell” — selling and seller. The suffix is to blame.

In this brief easy-read post, we simplify and clarify these two terms, making it easier for you to understand who does what in a home sale transaction.

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Listing and seller’s vs. selling agent

The real estate industry is rife with jargon, but few terms cause as much confusion as “listing agent” and “selling agent.” Though they sound alike, their roles are distinct.

Listing agent (seller’s agent): A listing agent represents the seller in the transaction. They are responsible for listing the property for sale, marketing it, and negotiating with buyers to secure the best possible deal.

Selling agent (buyer’s agent): On the flip side, the selling agent represents the buyer. They help find properties that meet the buyer’s criteria, advise on offers, and negotiate terms on behalf of the buyer.

“It’s kind of weird verbiage,” Tom Heuser, a top Las Vegas Realtor, told HomeLight in an earlier interview. “Many articles and the Realtors’ board will reference the buyer’s agent as the ‘selling agent’ because they are the ones representing the buyer and helping the property sell.”

He recommends swapping “selling agent” to “buyer’s agent” in your mind. This simple switch can clear up all the confusion.

What does a listing agent do?

• Home preparations: A seasoned agent will help you identify any repairs or upgrades that are necessary for a sale, and even what not to fix.
• Market the property: They use various platforms and strategies to showcase your home to potential buyers.
• Price your home: Utilizing market data, they help set a competitive price that attracts buyers.
• Negotiate offers: Skillfully negotiate with buyers to reach a favorable sale price.
• Manage paperwork: Ensure all legal and procedural documents are correctly handled.
• Advise on staging: Offer tips on presenting your home in the best light.

What does a selling (buyer’s) agent do?

• Property search: Finds listings that match the buyer’s needs and budget.
• Arrange viewings: Organizes home tours and required home inspections.
• Negotiate terms: Works to craft a strong offer and get the best price and conditions for the buyer.
• Guide through the process: Provides advice on financing, inspections,  appraisals, loan approvals, and closing.
• Handle paperwork: Assists with the documentation required for purchasing a home.
• Calm frazzled buyers: Buying a home can be an intense time. Having a calm, experienced expert can make the journey much more enjoyable.

Heuser’s suggested title correction approach clarifies the distinct roles of listing and selling agents, ensuring you know exactly who you’re dealing with in your next real estate venture.

Can a listing agent represent the seller and buyer?

In some real estate transactions, a single agent might represent both the seller and the buyer. This is known as dual agency, but it is illegal or heavily restricted in the following eight states:

• Alaska
• Colorado
• Florida
• Kansas
• Maryland
• Texas
• Vermont
• Wyoming

Where dual agency is legal, agents typically must clearly disclose to their clients that they are representing both the homebuyer and home seller in the transaction.

Pros and cons of dual agency

While it can simplify communication by having one point of contact, dual agency also brings unique challenges and considerations.

Pros

• Streamlined communication: With only one agent, coordinating discussions and negotiations can be more straightforward.
• Potential for a quicker transaction: The process may move faster without the need to coordinate between two separate agents.

Cons

• Conflict of interest: The agent must balance the needs of both the seller and buyer, which can be challenging. This is why it is banned in some states.
• Less advocacy: Buyers and sellers might feel they’re not getting the full support or advice they would with an agent solely representing their interests.

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How do both agents get paid?

Real estate agents are typically paid through commissions based on the sale price of the property. Here’s how it traditionally breaks down, but there are changes on the horizon (more on this below):

• Commission split: The total commission, often around 5%-6% of the sale price, is usually split between the listing and selling (buyer’s) agents.
• Paid at closing: These fees are usually paid out of the seller’s proceeds at the time of closing.

from HomeLight Blog https://www.homelight.com/blog/listing-agent-vs-selling-agent/