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Demystifying real estate: The difference between a listing agent and selling agent

Demystifying real estate: The difference between a listing agent and selling agent

The JAG Team

If you’re in the market to buy or sell a home, you may already be looking for a good real estate agent to help you achieve your goal. Regardless of which end of the real estate transaction you’re on, a trusted real estate agent is a crucial part of the process. Yet you may be confused about the type of agent you need. The roles of a listing agent and selling agent are very different, yet they are both necessary. Whether you’re thinking of selling your home or you’re a buyer looking for your dream property, understanding these two roles is key to navigating the process with confidence.

Here’s what you need to understand before you start any real estate transaction, and what a JAG agent says you should look for before you hire someone.

The role of a listing agent

If you’re thinking about selling your home, you’ll want to find a listing agent right away. This agent represents the seller in a transaction. And this agent will list your home properly on the market.

One of the most important things a listing agent does is set the price for your home. Because of their expertise and knowledge of the local housing market, these agents can determine that price based on a combination of information. That typically includes insights into the current real estate market conditions, including what supply and demand looks like, interest rates, and more. In addition, they have access to the data that allows them to research similar properties, known as comps, which can help them evaluate pricing.

A good listing agent will also help a seller prepare the house to ensure it is marketable and will sell quickly. They will make recommendations that will make your house look its best. They’ll also work with their marketing team to take high-quality photos for the listing. Once the listing is live, they will show the home and host open houses. When an offer is made, they will work with the seller to tackle negotiations and paperwork, helping you through the process until closing.

In the Triangle area, the listing agent’s pay is typically around 3 percent of your home’s selling price. As a seller, the pay comes out once you’ve sold the home and the transaction is finalized.  

One of the most important attributes of any real estate agent is that you should click with them since they are representing you as a buyer or seller.

The role of a selling agent

If you’re considering buying, a selling agent is the person you want to talk to. The selling agent represents the buyer in a real estate transaction. And while the term “selling agent” might seem confusing, there’s an easy way to help keep it clear. Upon finalization of the contract and purchase, the selling agent found the buyer who ultimately purchased the home and ensured the transaction happened. Hence the name.

A selling agent’s top goal is to help a potential buyer find the right home for their needs. Based upon a buyer’s wish list, an agent identifies the homes they believe will suit the client’s needs. The agent will set up showings and take buyers through the homes to tour them. They will also present sellers with clients’ offers, then help their clients close on the home.

Having a good agent as a buyer can be crucial in a competitive market like that of the greater Raleigh Durham area. You need someone who knows the market well and who can help you negotiate easily. You’ll want to ensure you find a great agent who has your best interest in mind. You’ll also need to sign a Buyer Agency Agreement with your agent before you begin touring homes.

Like the listing agent, the selling agent typically receives a commission between 2 and 3 percent. Because of new rule changes agreed to by the National Association of REALTORS®, the buyer may pay that commission. However, buyers can negotiate for the seller to pay, which is then formalized in the Buyer Agency Agreement.

Why do you need an agent?

Regardless of whether you’re searching for a listing agent or selling agent, it’s always wise to work with a licensed agent. A real estate agent’s training helps you with specific details. They help you analyze your buying and selling power. They also help you meet your real estate goals. In addition, they negotiate the best possible price and concessions and complete the necessary documentation to finalize a sale.

Kim Myers, a licensed real estate agent with The Jim Allen Group, said it’s important to understand that if you’re both buying and selling, you’ll want to use the same agent. “They’re looking for an agent that fits better with their personalities and handles both sides of a transaction,” she explained. “Working with two separate agents would make it very difficult because everything is confidential.”

Myers added that if you are buying and selling in two different cities or even states, she has the ability to work directly with the other agent, which is an important question to ask if you’re in transition. “If I sell a house here in the Raleigh area and somebody is moving to Colorado, I can do a referral for an agent in the other state,” she said, which allows both agents to ensure a seamless transaction.

Next, a good agent focuses on your needs as a buyer or seller. In today’s seller-driven market, it may seem like a For Sale By Owner (FSBO) situation may be helpful. However, the National Association of REALTORS® reports that FSBOs typically result in a significant price reduction — nearly $100,000 less — than those who sold with the help of an agent.

In addition, most people want to use agents because of their marketing abilities, competitive home price knowledge, ability to sell faster, and more. The advantages for using both a listing agent and selling agent far outweigh the option of buying or selling on your own.

Use a trusted agent you click with from the start

Having a knowledgeable ally by your side can make all the difference when buying or selling. Understanding the distinct roles of a listing agent and selling agent empowers you to approach the buying or selling process with clarity and confidence. Whether you’re selling your current home or embarking on the journey to find your dream property, working with a skilled agent ensures you have expert guidance every step of the way and will set yourself up for success in achieving your real estate goals

“A lot of people think that all agents are created equal,” Myers said. “ And that’s far from being true. Like any other profession, you are going to look for someone you click with.”

This is an extremely personal transaction — probably one of the biggest investments that you're going to make in a lifetime. You want to make sure that you're working with the right person that understands all of your needs and is going to be available to you, whether it is buying and selling. Kim Myers

She recommends interviewing potential agents to find the right person. “You want to interview more than one,” she said. “Friends don’t always make the best choice because if things don’t work out, you not only get a bad deal. You also might lose your friendship. This has to be handled more on a professional level. Also, when interviewing different agents, just make sure that you’re on the same page and you get along well.”

She also suggested making sure any agent you work with works full time as an agent — not just on the side. They should be readily available to you when you need them. She also recommends avoiding what she calls “discount brokers.” These brokers say they’ll give you a deal to only write the contract. However, they not do the work you need from an expert agent. 

“That’s why it’s good to really connect with whoever you’re going to be using,” she said.

Final thoughts

Myers said the key to finding the right agent is finding the person you can trust. “Trust is such a major, major issue,” she said. “Don’t just pick the first one that comes along or pick the one that says they are going to work for the least amount of commission. Because you get what you pay for. If you’re having heart surgery, you don’t want to find the cheapest doctor, you want to find the best.” It’s the same way in real estate.