What is a Listing Agent in Real Estate?
What is a Listing Agent in Real Estate?
Are you looking into listing agents and wondering what they do and if you should use one? Here is all you need to know about listing agents and all they do.
In the real estate industry, there are different roles to consider. Listing agents represent sellers in a transaction while selling agents represent buyers. Understanding listing agents responsibilities and tasks is essential when deciding whether or not to work with one and how to choose the best one.
Listing agents are basically there for the sellers. Their job involves many things, such as listing the house on the market, setting a competitive price, and bringing potential buyers to view the home. Working with a listing agent gives you access to their expertise in the local market, leading to a more successful sale.
Whether you are in the market for a new home or selling your current one, chances are you will want to work with a real estate agent who can help you navigate the process. However, some people may choose to go down the FSBO path; either way, it is important to go through all your available options.
According to the National Association of Realtors, 89% of home buyers use a real estate agent to help navigate the buying process. When it comes down to what type of agent you should use, a common question is what each agent is and what their role is in the transaction.
When you're looking to buy or sell real estate, it's crucial to know your agent's role and understand the specific tasks they are responsible for as they navigate you through the process. Keep reading to learn more about all you need to know about listing agents.
Here is everything you should know about listing agents in real estate.
Chapters
1. What is a Listing Agent?
A listing agent is a real estate professional who represents the seller in a real estate transaction, which makes them different from a seller's agent. The agent will list the home for sale and work on the seller's behalf to sell the house fast at the best price and under the best terms of the client they are working for.
Working with a listing agent gives you access to their expertise and knowledge of the local housing market. They have all the most current and detailed information on the sales of comparable properties in your neighborhood, which will allow them to price your house correctly.
Listing agents often help style the home, present it in the best light, and hire professional photographers to take high-quality listing photos. They also show the home, hold open houses, and evaluate potential buyers. They can walk through all offers, negotiations, paperwork, and closings. For services, listing agents typically earn a commission of about 2-3% of the sale price.
2. Benefits of Working With a Listing Agent
Selling a home can be stressful, especially if you are a first-time seller who does not understand the whole process. A listing agent can be a lot of help by taking some of that burden and providing information as well as resources needed to help. Below are some things that listing agents do to help you.
- Provide professional consultation: A listing agent can help you prepare for the process by walking through each step and telling you what will come next
- Market and sell your home: Your listing agent will list your home on the multiple listing service MLS, which is an online selling base that buyers' agents use to find homes for their clients
- Offer staging and photography: Your listing agent may also make staging recommendations and hire a professional photographer to show off your home's functionality and unique features
- Determine an asking price for your home: Setting a competitive price gives your house a better chance of selling for the highest price possible as quickly as possible. Your listing agent will do a comparative market analysis of your home to find the best price based on the square footage, age, location, and features
- Schedule showings: When a buyer finds a home they want, they or the agent will coordinate a showing with the listing agent
- Host open houses: Your agent may also host open houses, which are certain times when potential buyers can walk through the home without an appointment. The listing agent might use social media to advertise open houses.
- Communicate and negotiate with buyers on your behalf: Strong communication is vital when buying a house to cut down any stress. A listing agent will manage the whole process, handling paperwork, any negotiations, and dealing with the final sale and terms of the sale for you.
- Recommend other professionals: Seasoned listing agents may have worked with many other professionals who can help make the selling process go smoothly, such as real estate attorneys, inspectors, stagers, and others who specialize in home improvement.
3. Who Pays a Listing Agent?
Real estate agents typically earn money through commissions. A commission is a certain percentage taken from the sale proceeds. Unless specified otherwise in the contract, a commission is usually around 6% of the final sale price. It is then divided among the buyer's agent, the listing agent, and each agent's real estate brokerage.
Since the money for the agents comes from the proceeds, the seller technically pays for both the listing and the buyer's agent. However, the buyer and the buyer's mortgage lender provide the money the seller receives.
However, when you are trying to figure out your listing agent's pay, you can ask questions and negotiate. Negotiations are only available between the listing agent and the seller, though.
4. Roles and Responsibility of a Listing Agent
A listing agent's job is to help clients sell their homes. They allow the seller come up with an accurate asking price for their home, stage the house for pictures and tours, and market it on platforms such as the MLS.
A listing agent is also responsible for bringing buyers directly to the client and negotiating the offers made on the property. They are also there to help navigate any complicated paperwork and the steps needed to close the sale, which can be a long and confusing process.
An overall list of responsibilities that listing agents do are:
- Market the property
- Negotiating the listing agreement
- Pricing the property
- Handling showing and open houses
- Advising the seller on any repairs or improvements needed
5. How To Find the Right Listing Agent
When you are searching for the right listing agent, you may want to start with someone who might also be a realtor. They should be licensed, have experience, references, and a professional website where you can learn more about them, their qualifications, and their professional successes. Remember that most agents work with businesses and sellers, but some may specialize specifically.
After finding a few agents through research, make sure to speak with them to confirm that they meet your professional needs and have the right personality for the job. Don't hesitate to ask for references. Request the names of a few clients who recently completed transactions with them and ask those customers about their experience. Since this is your home-buying process, it's important to find the listing agent that's right for you.
Once you have found a few agents who seem like they would be a good fit for you, set up an informal interview. If an agent doesn't have time for this, then keep looking. Buying a home is a major transaction and can be a long process, so you want an agent with whom you will be comfortable in the long run. Here are some questions to ask potential agents.
- Availability and Schedule: Are they full-time? Do they have a side hustle? This will help you determine how they manage their time and priorities.
- Communication and Working Style: Do they prefer phone or text? Will you work directly with an agent or the assistant? How often will you hear from them?
- House Hunting: How will they find homes in your price range? What strategies do they use to guide buyers in a competitive market? What location do they work in the most?
- Making Offers and Negotiating: How will the agent help you make competitive offers and negotiate with sellers? What challenges could you find in your local market?
- Thought and Feels: Does the agent's interpersonal style mesh with yours? Is this someone you trust?
6. Listing Agent vs Selling Agent?
A listing agent helps clients market and sell their homes, manage the paperwork, and negotiate offers. A selling agent is a real estate professional who helps clients find and buy a new home.
While both of these titles sound similar, their roles in real estate transactions are very different. Listing and selling agents typically work together to close a deal. Overall, the biggest difference between a listing agent and a selling agent is who they represent. Both agents will work together to negotiate offers, close a deal, and share the commission fee.
Knowing who you should call is an important first step if you are getting ready to buy or sell your home. Most real estate agents can work as either listing agents or selling agents, so if you find a trustworthy agent, they should be able to help you out regardless of whether you are the buyer or seller.
7. Real Estate Statistics in 2024
The real estate industry is constantly evolving, and sometimes it is hard to keep up with it and all the emerging trends. Since it is such a fast-paced industry, conducting research and looking at current statistics is important to help you understand the real estate world and the housing market.
- The Association of Real Estate License Law Officials estimates that there are over 3 million active real estate licensees in the United States
- The typical home seller has been in their home for an average of 8 years
- 86% of members of the NAR use their own listing, 70% have information about buying and selling, and 66% have a link to their firm's website
- 89% of buyers purchased their home through a real estate agent or broker
- 90% of buyers would use their agent again or recommend them
- Out of first-time home buyers, 70% were young Millennials, and 46% were older Millennials
Methodology
We used information from different sources and our data to create this guide about listing agents and everything you should know. There were various data to use, so we put them together to help you understand listing agents.
Above are a few sources we used to gather most of our information about listing agents and everything you should know.
FAQS
Is a listing agent the same as a selling agent?
No. A listing agent, or seller's agent, represents and works with the sellers, while the selling agent, or buyer's agent, represents and works with the buyers.
What are some of the listing agents' duties?
A listing agent will help the seller price, stage, and market the property, show it off to potential buyers, and negotiate on their behalf.
Who is the listing agent in most cases?
When a home seller hires an agent to help them in the sale and signs a listing agreement, the agent is known as the listing agent. In most cases, the listing agreement gives the agent an exclusive right to sell the property for a specific time.
What is a Listing Agent in Real Estate? - The Bottom Line
A listing agent is a real estate professional who represents the seller in a real estate transaction. The agent lists the home for sale and works on the seller's behalf to sell the house at the best price and under the best terms.
Working with a listing agent gives you access to their expertise and knowledge of the local housing market. They have all the most current and detailed information on the sales of comparable properties in your neighborhood, which allows them to price your house correctly. In the real estate industry, there are different roles to consider.
Listing agents represent sellers in a transaction while selling agents represent buyers. Understanding listing agents' responsibilities and tasks is essential when deciding whether or not to work with one and how to choose the best one.
If you are considering moving or selling, contact us or visit our website. Our team at Raleigh Realty is here to help you with any home buying or selling needs.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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