There are over 1.4 million real estate agents working in the country, but they don’t all do the same thing.
Real estate agents generally fall into two categories: a listing agent and a selling agent. Which you hire will depend on what side of the real estate transaction you fall on. There are some similarities in what these types of agents do, but there are also some major differences.
Today’s post will address these two important real estate roles. Whether you’re trying to sell a house or buy one, you need to understand the benefits of a listing agent and selling agent to determine whether or not you should hire one. We’ll also take a look at some of the alternatives to both for home sellers.
The world of real estate can seem overwhelming and stressful, but it doesn’t have to be. Read on, and we’ll give you all of the information you need to make the best decision for your real estate transaction.
What Is a Listing Agent?
Here’s where things can seem a bit counterintuitive. It may sound like the selling agent is who represents the seller, but that’s actually the listing agent’s responsibility. The core of their job is to list the seller’s home and do what they can to make a quick and lucrative sale.
So, what does all of this entail? Basically, they handle or outsource everything having to do with the listing and showing of the home. They arrange for professional photography and video, stage the home (if necessary), list it, show it to potential buyers, and negotiate on your behalf.
An experienced listing agent will consider your local market when pricing your home. They’ll also vet any potential buyers so that you don’t run into any roadblocks when the home is sold. When a price is agreed upon, they’ll help you work through the paperwork so you can close on the home.
For their services, a listing agent takes a 2-3% commission to the home seller.
What Is a Selling Agent?
A selling agent represents the buyer in a real estate transaction. They’re the ones that help buyers search the real estate market for homes that fit their needs and budget. Sitting down with the buyer, they’ll find out what type of home, which amenities, and what location they want the home to have.
With this information in hand, they’ll perform a comprehensive search of the desired area and choose homes to show their buyer. They contact the listing agent to arrange viewings, and then when the buyer is interested, negotiate with the listing agent to find a price that satisfies both parties.
If an offer is accepted, they’ll help the buyer deal with their end of the paperwork. Like the listing agent, a selling agent’s commission is between 2-3%, paid by the seller.
Benefits of Real Estate Agents
There are some benefits of selling agents and listing agents. When it comes to selling a home, the main benefits of listing agents include access to qualified buyers, knowledge of the local real estate market, and promotional tools.
When you have a good listing agent helping you, there’s not much that you need to do as a seller. They handle the hard stuff for you, allowing you to sit back and wait for the right offer.
For buyers, the benefits of selling agents include negotiation, the ability to seek out the best homes on the market, and guidance on the administrative side of things. It’s hard, especially for first-time buyers, to navigate the real estate market. A selling agent makes it easy.
Alternatives to Hiring a Listing Agent and Selling Agent
Using listing and selling agents is by far the most common method for buying and selling real estate. That said, it’s not the only way and there are many reasons why you might decide to seek an alternative route.
The biggest reason to eschew real estate agents is the cost. If you’re selling your home, you end up paying a commission to both listing and selling agents, so you’re looking at a 5-6% commission on the sale of your home. A home that sells for $400,000 thus commands a commission of $20,000 to $24,000.
Trying a Real Estate Investor
Home sellers who find this offputting can choose to sell their home to a real estate investor, which eliminates the need for realtors. When you find a reputable “cash buyer”, you can get a fair price for your home without any of the stress of working with real estate agents and finding buyers.
How Does It Work?
The process is actually really simple. All you need to do is head to our website at ibuyhomes.com to fill out our secure online form. We’ll contact you to find out more about your home and arrange a meeting to conduct an inspection.
Once we’re satisfied with what we see, we’ll give you a no-obligation cash offer. Our team looks at the information you provide, as well as the location and condition of the home, before coming up with a price. If you feel that you’d rather take the more traditional route with listing and selling agents, you can decline our offer.
Experience More Real Estate Freedom
Because we don’t use banks or mortgage brokers, we can close on your home at your earliest convenience. You can choose to close quickly for an all-cash offer or take owner financing, which gets you more money over a longer period of time.
Dealing with investors like us gives you a lot more freedom to search for your next home, making it a great option for those who need more flexibility, as well as those in foreclosure or probate.
Real Estate Agents Aren’t Necessary
Now that you know more about the similarities and differences between the average listing agent and selling agent, you can make a more informed decision about your real estate future. Although they can be very helpful for both buyers and sellers, it’s important to know there are other options as well.
For sellers, in particular, it can be more cost-effective and easier to sell to a cash buyer. At ibuyhomes.com, we’re one of the nation’s leading real estate investors, helping countless Americans sell their homes quickly and simply. To learn more about our services or get your no-obligation cash offer, contact us today.