Listing Agent Vs. Selling Agent

In the United States, real estate transactions are largely controlled and governed by both, the state and Federal governments. Agents, are dealers in real estate markets. In order to compare 'listing agent vs. selling agent', it is necessary to understand the concepts of selling, listing and certain real estate market terminologies and their functions.

Real Estate Markets

All the real estate markets in the United States are governed with the help of Department of Real Estate of specific states. This department undertakes the governance of licensed real estate brokers and broker firms. The broker and their firms undertake licensing compliance and accountability from the state governments. It is through these licensing procedures that government implements its real estate related laws. The real estate can operate only under either firms or brokers who have valid license from the Department or License and the Department of Urban Development.

These agents are usually classified into listing agents and selling agents. This classification of real estate brokers is principally based upon the function that is preformed by the agents.

Difference Between Listing Agents and Selling Agents

The difference between listing agent and selling agent is base upon their function:

• Selling agents help people find the homes of their choice. Hence, they are also known as buyer's agents. People who are interested in buying real estate take the help of selling agents. These agents are empowered by their customers to find a desirable real estate, this makes the agents legal representatives of the buyers. The contract between the agents and their customers gives the agent empowerment to represent the buyer. From a customer's perspective, a listing agent has to find a property at the minimum price, which is in the best possible condition.
• Listing agents on the other hand, are empowered to sell properties on behalf of their clients. These agents are authorized to sell properties for the best deals, that is, at the maximum possible cost.

The real estate agent commission of selling and listing agents is usually equal. The standard commission is 6% , though some agents charge less. The commission is split 3% to 3%, though in some cases, a difference is observed. Real estate negotiation is a common job for both the agents. Secondly, guiding the client is also an important job of the agent. Customers are often ignorant of the actual value of the property, its condition and future price projection. In such instances, both, the listing and selling agents guide their customers.

A very genuine query that I recently came across was, that while putting up a property for sale or buying a property, is it essential to authorize two different firms to do the job. Basically, it is advisable to do so due to the simple logic that you will be able to get the best possible price. This would not exactly make a huge difference but there can be an advantage of a few thousand dollars. Appointing one single firm will however, have one advantage as the agents would be familiar with you, and would try to find a deal that fits your sale and purchase price the best. The difference again, as mentioned, is not exactly vast.

Both the listing and selling agents are responsible positions, and you need to put a lot of trust in them. Hence, make sure that you get a well reputed and trusted firm to buy or sell for you.