We often think listing and selling agents are the same, but the truth is that they are quite different as each one has different responsibilities and tasks. While an individual can decide to be both, they have their differences. In this article, we’ll discuss how to become a real estate listing agent vs a selling or buying agent commission.
The misconception about listing and selling agents is that they both have the same duties. While some of their duties can appear similar, most have tangible differences. A listing agent will offer to help you advertise and sell your properties, while a selling agent is all about getting you a suitable property that matches what you are looking for.
Buying a property can be a stressful task as it comes with a lot of workload and paperwork. But do listing agents and selling agents work hand in hand? Is there a need for them at all? Let’s find this out together.
Listing Agent vs Selling Agent
It can be quite embarrassing when we mistake a listing agent for a selling agent but wait, it is not unheard of. First, we will be shedding more light on what it is and what its responsibilities are.
Listing Agents
A listing agent is a real estate agent who is in charge of selling a property. They handle all aspects of listing houses their clients wish to sell. Regardless of the market price, if you own a home you want to sell and you want to sell at the best price, you should employ them.
A listing agent will usually draft a contract of a “right to sell” with the owner of the property. This contract will give him/her access to the market to sell the property. In the contract agreement, the agreed commission should be indicated. And once the deal is a success, the brokerage firm will pay the seller and the listing agent.
They are not just about selling a property faster, they ensure you get the best price too. If this is your first time selling a home, you should use the help of a listing agent. However, getting one can be tricky, but try using the help of family, friends, or colleagues who have used a service of a listing agent. A referral will help narrow your search to a minimum.
Responsibilities of a Listing Agent
Here are the responsibilities of a listing agent:
- They do research concerning the property.
- They advertise and sell properties.
- Listing agents are in charge of negotiating with the buyers.
- They set prices and represent the owner of the property.
- They are in charge of taking photographs of the houses.
- They handle the paperwork of the deal.
Selling agent
A selling agent is a real estate agent who is in charge of assisting clients to find and buy houses. A selling agent is often referred to as a buyer’s agent. The duties of a selling agent and that of a buyer’s agent are very similar. The key difference between a selling agent and a buyer’s agent will be discussed later in this article.
A selling agent works closely with buyers or clients to assist them with the purchase of properties. Selling agents work hand in hand with listing agents. While a listing agent helps their clients sell their homes, a selling agent helps their clients to buy homes from a listing agent.
Responsibilities of a Selling Agent
Here are the responsibilities of a selling agent:
- A selling agent assists clients to find and buy properties.
- They show clients suitable homes available for sale.
- They make research on the home and help with negotiating prices
- They work with clients’ budgets
- They set up a home inspection
- Selling agents assists with paper works.
Listing Agent vs Selling Agent Commission
The listing agent vs. selling agent play different roles in real estate and the commission for both agents can differ from one another. Depending on the agreement on the contract, the commission can vary.
A listing agent will help you sell your building, and if you are using his/her services, you will have to sign a “selling agreement.” The selling agreement with them will cover the commission percentage agreed on. A listing agent normally earns around 2 to 5% commission on the agreed price.
The LA employed will agree to a fee to help you advertise your home. The fee for listing a home is not necessarily part of the commission since the commission can only be received when the deal is finalized.
The listing agent receives a commission from the selling agent, which is why some think that they have the same duties. If the agreed commission for a property is 10%, the LA will receive 5% of the payment while the SA will receive the other 5%. They will each receive half of the commission.
It is not uncommon for an individual to be both. Although it is not ideal, it is very possible. And in a scenario where an individual is both, he/she will receive the commission without the need to share with the other agents.
To avoid any misunderstanding after the success of the property, both the LA and the SA should get a proper understanding of the contract.
Real Estate Listing Agent vs Selling Agent
Buying a home or selling a home comes with lots of responsibilities and procedures, especially when you are not using a real estate agent. Most people looking forward to selling or buying a home, often mistake a listing agent for a selling agent, but they are not the same.
The question is, are they both equally important? Yes, they are both equally important, but in most cases, the services of a listing agent can cover both agents. In this sense, if the LA gets to find a buyer without the use of a selling agent, he/she can take dual responsibility for both agents.
However, a selling agent will use the help of a listing agent to get his client the property they need. You can indeed sell off your property without the help of a LA, and you can buy a property without the need for a SA. But using the help of a real estate agent will increase your chances of getting better deals and higher returns from sales of your building.
Few Similarities and Differences Between a Listing and Selling Agent:
A listing agent can help you make thorough research on the market value of your property and even get them sold for a higher price than your expectations.
Both agents are often good at negotiating prices. This is why you must hire one for your property. A listing agent often utilizes various strategic marketing techniques to create awareness for the property, and potential customers will come for it.
Both the listing and selling agents take care of the inspection of the property and also take photographs of the building. The former takes photos for advertisements while the latter takes photos for showing their clients.
The key difference is that the LA helps you sell your property, while the SA will help you buy one. If you have a building you want to sell, you should consider using the help of an LA.
How to Become a Listing Agent
Becoming a listing agent comes with lots of perks and offers. To become successful, you need to follow these steps:
#1. Be Sure of What You Want to Become
You must be sure of what you want before getting on the train. A listing agent is a reputable job. And you will not regret becoming a professional, but first, you need to be sure of what you want to become.
#2. Finish High School or Get a GED
The first step is to finish high school or earn a GED. This will help with the rest of your journey as a listing agent.
#3. Earn an Associate’s or Bachelor’s Degree
The next step is to earn an associate’s or bachelor’s degree. Having one of these degrees will give you more understanding of how real estate works, the laws involved, and other details that will help your career.
#4. Earn a Master’s Degree
This is optional. Earning a master’s degree in a related field will also be of great help to your career.
#5. Get Certified
Getting certified as a listing agent is very important for your career. To become a listing agent, you will need to complete the state’s requirements for the pre-qualifying class. Requirements may vary from state to state. The next step will be to sit for the state real estate license exam and pass it.
Listing Agent vs Selling Agent vs Buying Agent
This overview will discuss some of the key features of a listing, selling, and buying agent:
What Is a Listing Agent (Seller’s Agent)?
A listing agent is in charge of selling properties for a seller. Their duties include representing a seller and helping them sell their houses at unique prices. While you can sell your house without their help, selling with the help of a real estate listing agent will get you access to making more profits.
Listing agents aim to help their clients advertise and sell houses at prices that will be a huge profit to the owner. When looking for a faster way to sell a property, you should enlist their help.
What Is a Selling Agent (Buyer’s Agent)?
A selling agent is in charge of making research on available listed properties and buying them for their clients. A selling agent can also help you do research on the available properties that will suit your liking and get them for a lower price than the original market price. They represent the buy and make purchases on their behalf.
What Is a Buying Agent?
A buying agent’s responsibilities are similar to those of a selling agent. They are also in charge of buying properties on behalf of the buyer. Once the contract is signed, the selling agent will be referred to as the buying agent.
Which Listing is the Most Advantageous to Broker?
The sole right given to a broker to sell the property on his or her own, and that broker is guaranteed a commission no matter who sells the property. It’s the best offering for the broker because even if the owner sells the property within the terms of the contract, the broker still gets paid.
To Sum Up
The use of listing and selling agents should not be undermined for any reason, especially if you want to get the best deal out of selling or buying a new home. Going solo will probably take a longer period of time with no guarantee of getting a better deal. But with the use of a listing or selling agent, you can hope for the best.
I am confident that you have learned how to become a real estate listing agent vs how to earn a commission as either a selling or buying agent.
Listing Agent vs Selling Agent FAQs
Can an Agent Take on Both Roles?
Yes, an agent can be both the listing and the selling agent.
Can I Get My Property Listed for Free?
Yes, some listing agents may offer to list your house for free, while some may accept a flat fee for listing.
Can I Buy a Property Without the Help of a Selling Agent?
With the help of the internet, yes, you can buy without the need for a selling agent.
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