In the real estate world, we tend to use some terms that can confuse those who are new to the real estate buying process, and even those who have been in real estate for quite some time. So, in an effort to help educate our favorite clients, we’ll define some of these terms from time to time, to let you in on the world we work in everyday. This week, join us as we explore the differences between a buyer’s agent and a listing agent.
Generally in real estate, you may have heard just of a “real estate agent.” While that term is the generic term for an agent, there are specific titles for agents on both ends of the deal. When purchasing a home, you will be dealing with a buyer’s agent. These types of agents will guide you through the home buying process, and they will negotiate on your behalf and write up contracts for you. The best part about these types of agents is that you will not pay them directly; instead they will take a percentage of the home sale price as their paycheck.
On the other hand, a listing agent is the real estate agent on the selling side of the deal. If you would want to sell your home, you would contact a listing agent who will “list” your property with the real estate agency and local area. These agents will help set a fair value for the property, and will negotiate on your behalf to get you the best price. Like a buyer’s agent, a listing agent does not get paid until the transaction has been completed, as they take a percentage of the sale price as their payment.
Sometimes in real estate, you’ll have a situation where you won’t work with two separate agent, but instead one agent on both sides of the deal. This is known as dual agency. A dual agent will perform all the duties of a buyer’s agent and a listing agent, and will get paid in the same fashion. Dual agency comes with its pros and cons, as some people think having one agent expedites the whole process, while others feel as though their interests aren’t represented and protected when dealing with just one agent.
We understand that the field of real estate can be a confusing one to those who aren’t really exposed to it—we had to start somewhere too. However, it is our goal to share our knowledge with our clients, as we believe that it will not only make them better home buyers and sellers, but better people as a whole. Should you have any more questions, or would like to meet with a buyer’s agent or a listing agent, give us a quick call, and we’ll help you out in no time.