Property transactions are complicated, so most people choose to use real estate agents to help them navigate the process. There are two types of real estate agents, so depending upon your personal needs, you may need to secure a selling or listing agent to represent your interests.
Contrary to popular opinion, these two types of agents are extremely different and have separate responsibilities, so they are essential for completing a property transaction. Here is what you need to know to determine if you need a listing agent vs. selling agent.
What is a Listing Agent?
A listing broker, also called a seller’s agent, is responsible for representing the interests of people looking to sell a property. These agents have a comprehensive understanding of how the real estate market works and know how to market and price a property effectively, so it spends as little time as possible on the market while maximizing the seller’s profit. Listing agents have the following responsibilities:
- Lists the property on Various Listing Service
- Negotiates prices, contingencies, and conditions on behalf of the seller
- Schedules showings
- Prices the property
- Advertises the property
- Helps with the closing paperwork
Most listing agents require sellers to sign exclusive selling agreements. By doing so, the agent secures a commission for his or her brokerage upon closing. The brokerage then shares a portion of the commission with the agent.
What is a Selling Agent?
Although the names sound similar, a selling agent is vastly different from a seller’s agent. While a listing agent takes care of selling the property, a selling broker represents the interest of the buyer.
Anyone looking to purchase property would benefit from obtaining a selling agent to help navigate the complex process. This type of real estate agent learns about what buyers are looking for and then help match them with properties. Selling agents perform the following tasks:
- Find and show properties that meet the buyer’s needs
- Helps buyers secure financing
- Guides showings
- Helps with the closing paperwork
- Ensures properties are priced fairly
Like listing agents, selling agents typically work with a brokerage. When they submit an offer for the buyer that is accepted by the seller, selling agents receive a portion of the commission earned by the listing agent. Because this process requires both types of agents to profit off of a single transaction, it is referred to as a co-op commission.
How Do Both Types of Real Estate Agents Work Together?
For a property transaction to go smoothly, both a listing agent and a selling agent are required. They act as mediators between the seller and the buyer to ensure both parties are happy after the transaction has been completed.
Although the agents may work for separate real estate firms, they must work together to ensure both the buyer and the seller benefits from the sale. On average, an agent spends nine hours working on a real estate case behind the scenes for every one hour spent with the client.
In some cases, a single agent may assist both the Buyer and Seller in a transaction; in Colorado, this is called a Transaction Broker. In most cases, the real estate firm employs both types of agents to allow the company to help in multiple ways. This allows property owners looking to sell their current property and purchase a new one to work with a single firm to buy and sell.
Whether you are looking for a listing agent, selling agent, or both, Unique Properties can provide you with a realtor that can meet your individual needs. Our agents are experts in marketing properties, so they sell quickly and have a breadth of knowledge and experience sourcing properties for Buyers. Contact us today to discuss your needs and let us help you complete a property transaction quickly and efficiently.
Image Credit: Shutterstock/MIND AND I