What Is a Listing Agent?

What does a listing agent do?

Kristina ODonnell, an associate broker and realtor with Realty One Group Restore in Collegeville, Pennsylvania, said a listing agent can serve as your real estate advisor, negotiator and resource.

“The scope of work a listing agent provides can vary greatly depending on a seller’s wants and needs, and not all listing agents are the same,” ODonnell said.

You’ll hire a listing agent to list your home for sale on the Multiple Listing Service (MLS). The MLS is a tool that real estate brokers and listing agents use to share property listings. It also allows homebuyers to view properties for sale.

Besides listing the home for sale, listing agents offer other services. They may “[handle] the necessary paperwork, [work] with and [coordinate] municipal inspections, [evaluate] the buyer’s strength, and [negotiate] not only the sale contract[,] but the contingencies as well,” ODonnell said.

Listing agents can help you take professional photos of your home, create a pricing and marketing strategy to help you sell your home faster and coordinate other activities related to your home sale. For example, ODonnell said listing agents can help you find professional movers or junk haulers.

» MORE: How to sell and buy a house at the same time

Listing agent vs. selling agent

While they sound the same, listing and selling agents sit on opposite sides of the real estate transaction.

• Listing agent: A listing agent is responsible for listing homes for sale and marketing them to prospective buyers. They represent the seller during the real estate transaction.
• Selling agent: A selling agent, also known as a buyer’s agent, represents the buyer during a real estate transaction. Selling agents help the buyer find a home to purchase, determine how much they can afford to spend on a house and close the transaction once the buyer has found a home they want to buy.

How much does a listing agent cost?

A listing agent takes a real estate commission, which usually ranges from 5% to 6% of the property’s sale price. This commission is typically split 50/50 between the listing and selling agents. However, the specifics can vary by region, agent and transaction, so it’s a good idea to confirm this upfront as you’re evaluating listing agents.

Real estate commissions are paid by the seller. They’re typically 5% to 6% and split 50/50 between the listing and selling agents.

For example, let’s say you sold your home for $300,000 and the real estate agents involved in the transaction get a 6% commission. The commission would total $18,000 ($300,000 x 0.06 = $18,000).

In most cases, the seller is responsible for paying the commission to both the listing and selling agents. This fee is typically collected by your title agency or real estate attorney when the transaction closes and is distributed to the agents on your behalf.

This commission compensates the real estate agents for their work listing and selling the home, as well as any other costs they incurred during the process like printing flyers, staging your home or taking photographs.

» MORE: Closing costs: average cost and how to calculate

Pros and cons of listing agents

Before working with a listing agent, consider some of their pros and cons:

Should you work with a listing agent?

Although you don’t have to work with a listing agent, doing so has many advantages. A listing agent will:

List your home on the MLS

When you work with a listing agent, your home will be publicly listed on the MLS for more people to see. That means homebuyers, real estate agents and brokers can see your listing.

Coordinate all selling details

In addition to listing your home, your listing agent will coordinate all the selling details. This includes:

• Coordinating showings of your home
• Setting up inspection appointments
• Working with your title agent or other professionals on tasks related to the home sale

Provide marketing services

Some listing agents provide marketing services, such as sourcing professional photographs and videos of your home, staging your property to make it look as appealing as possible to prospective buyers and helping you determine the best time of year to sell your home. These services might help you sell your home faster.

How to choose a listing agent

Listing services aren’t free, and not every agent offers the same services, so you should understand what your agent offers before agreeing to use them.

Confirm state licensing

Make sure any listing agent you’re interested in can sell real estate in your state and that they have the proper licenses. One way you can do this is by searching the Arello Real Estate Licensee Verification Database, which includes license information from 39 U.S. states, Washington, D.C., and four Canadian provinces.

You can also perform an online search for real estate licensing in your state or jurisdiction and get in direct contact with the governing licensing agency. Plus, you should be able to find details about the agent’s license on their website or by contacting a real estate agency.

Check qualifications and experience

Before working with a listing agent, Kristina ODonnell recommends:

• Asking about an agent’s experience and education
• Getting testimonials from their clients
• Evaluating how comfortable you are working with the agent

Désirée Ávila, a realtor based in Fort Lauderdale, Florida, said you should “choose the best agent, not a good friend or family member (unless they are also an outstanding agent).” Ávila also recommended picking an agent that has:

• An adequate level of professionalism
• Good communication skills, both verbally and in writing
• Full-time availability as an agent
• Local knowledge of the community

FAQ

Bottom line

Listing agents help coordinate all the activities associated with selling a home. This includes marketing the home, handling paperwork, coordinating inspections, evaluating buyers and negotiating contracts. While these services can help attract more buyers and speed up the selling process, you’ll need to pay your agent a percentage of the sale price.

When evaluating listing agents, consider factors like their licensing, experience, professionalism, availability, local knowledge and reputation. Your listing agent should be someone who can protect your best interests throughout the home selling process.