In the United States, real estate transactions are largely controlled and governed by both, the state and federal governments. Agents are dealers in the real estate market. In order to compare ‘listing agents and selling agents, it is necessary to understand the concepts of selling, listing, and certain real estate market terminologies and their functions.
Real Estate Market
The real estate market in the United States is 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 brokers and their firms undertake licensing compliance and accountability from the state governments. It is through these licensing procedures that the government implements laws related to real estate. The industry can operate only under either firms or brokers who have valid licenses 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 agents and selling agents is based upon their functions:
- 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 their help. These agents are empowered by their customers to find a desirable real estate, and 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, the 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 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 types of 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 appropriately.
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. Mostly, this would not exactly make a huge difference, but sometimes 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.