A common question that many people have pertains to the difference between a selling agent and a listing agent. This question is particularly pertinent for individuals who are currently in the process of buying or selling a home. Read this article to learn more about the agents that buy and sell homes.

What Is a Listing Agent?

A listing agent refers to a real estate broker who is responsible for representing a homeowner who is trying to sell their home. A listing agent’s main goal is to ensure the seller gets the best price and terms for the sale of their home. The listing agent will work with the selling agent to create sale terms that most optimally satisfy the needs and wants of both parties.

What Is a Selling Agent?

On the other hand, a selling agent is responsible for representing the buyer in the sale of a home. This understandably confuses many people. Before the contract is signed, the agent who represents the buyer is referred to as the buyer’s agent. However, after a contract is signed, the buyer’s agent becomes the selling agent. The reason for this is that the agent successfully found a buyer who then bought the home. In general, selling agent and buyer’s agent are considered to mean the same thing.

Some responsibilities of the selling agent include finding the listings of properties that may interest the home buyer, scheduling showings with listing agents, presenting offers to the listing agent, and creating and signing the contract after an offer is accepted.

How Are Listing and Selling Agents Compensated?

In most cases, a real estate agent will earn money through commissions. When a transaction is settled, the commission is paid to the broker. A single commission will often be used to compensate the listing agent, the selling agent, the listing agent’s broker, and the selling agent’s broker.

Selling agents typically receive a co-op commission. Listing brokers often work with another brokerage. The listing broker will pay a portion of the co-op commission to the selling agent if the home seller accepts an offer from the buyer found by the selling agent.

Real estate agents have licenses and work under a broker. A real estate agent cannot work independently of a broker. On the other hand, brokers have the option of working on their own to buy and sell homes. Brokers can also hire real estate agents.

As you can see, there are many key differences between listing agents and selling agents. For more information about real estate agents that buy and sell, don’t hesitate to contact us.