{"id":2463,"date":"2020-07-14T04:11:19","date_gmt":"2020-07-14T04:11:19","guid":{"rendered":"https:\/\/housingmarketgroup.com\/?p=2463"},"modified":"2020-07-14T04:11:19","modified_gmt":"2020-07-14T04:11:19","slug":"what-is-a-listing-agent-and-do-you-need-one-to-sell-your-home","status":"publish","type":"post","link":"https:\/\/housingmarketacademy.com\/bg\/what-is-a-listing-agent-and-do-you-need-one-to-sell-your-home\/","title":{"rendered":"What Is a Listing Agent and Do You Need One to Sell Your Home?"},"content":{"rendered":"\n

If you\u2019ve never sold a home \u2014 or if it\u2019s been a few years since you went through that process \u2014 the language of the real estate world might seem intimidating. Between acronyms such as MLS and terms like \u201cbroker\u201d and \u201cagent\u201d that people use interchangeably, it\u2019s enough to make you want to Google whatever you can before you put your house on the market.<\/p>\n\n\n\n

Let\u2019s lend a hand by defining a listing agent. When you\u2019re selling your home, a listing agent is your main representative and contact. In fact, in 2019, 89% of sellers chose to use a listing agent, data from the National Association of Realtors (NAR) shows.<\/p>\n\n\n\n

\u201cA listing agent is somebody that exclusively represents the seller\u2019s best interests. Their ultimate goal is to sell the seller\u2019s home for the most money in the least amount of time,\u201d says Tom Heuser, a top real estate agent in the Las Vegas, Nevada, area who sells homes 36% faster than the average agent there.<\/p>\n\n\n\n

No wonder this person is a valuable guide. Here\u2019s a more detailed look at what a listing agent does\u2014and how one can help you sell your home for the best price.<\/p>\n\n\n\n

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How does a listing agent differ from a \u201cselling agent\u201d?<\/h3>\n\n\n\n

In real estate terms, a \u201cselling agent\u201d actually represents the buyer. That sounds confusing, right? Wouldn\u2019t the selling agent represent the seller?<\/p>\n\n\n\n

Although we conversationally refer to a \u201cseller\u2019s agent\u201d as someone who represents the seller, the real estate world views a \u201cselling agent\u201d differently. A \u201cselling agent\u201d (sometimes called a \u201ccooperating agent\u201d) is any agent who sells a property, the NAR says. In a sense, the \u201cselling\u201d agent may not list the property but is helping the property sell by bringing a buyer to the table. The key is in the suffix: \u2013er versus \u2013ing.<\/p>\n\n\n\n

Because they\u2019re on the opposite side of a real estate transaction, selling agents have opposing goals \u2014 mainly, to help the buyer purchase home for the least amount of money and to negotiate so that the current owner or seller handles certain repairs, again saving the buyer money.<\/p>\n\n\n\n

\u201cIt\u2019s kind of weird verbiage,\u201d Heuser admits. \u201cMany articles and the Realtors\u2019 board will reference the buyer\u2019s agent as the selling agent because they are the ones representing the buyer and helping the property sell.\u201d When in doubt, switch \u201cselling agent\u201d to \u201cbuyer\u2019s agent\u201d in your mind and that\u2019ll help you keep track.<\/p>\n\n\n\n

What does a listing agent do?<\/h3>\n\n\n\n

A listing agent does much more than just put a \u201cFor Sale\u201d sign outside of your house. For one thing, a listing agent lists your home in the Multiple Listing Service, or MLS, a tool where real estate agents for buyers and sellers share information on available properties. That\u2019s instant advertising, even without promoting the home on the agent\u2019s website or through other online marketplaces.<\/p>\n\n\n\n

A listing agent also:<\/p>\n\n\n\n

Sets the asking price:<\/h4>\n\n\n\n

When you\u2019ve lived in your home for even a short amount of time, you become emotionally attached. This can hinder you from gauging your property\u2019s worth accurately. A listing agent knows the market conditions and researches homes that are comparable to yours in terms of size and other features to arrive at an asking price.<\/p>\n\n\n\n

That price tends to be about 40% higher than homes sold without using an agent, in other words, those \u201cFor Sale By Owner\u201d (FSBOs), NAR data shows. That\u2019s more money in your bank account, even after an agent\u2019s commission (more on that below)\u2014and without doing that research and legwork yourself.<\/p>\n\n\n\n

Advises you about repairs:<\/h4>\n\n\n\n

After your home inspection, a listing agent can help you sort through which repairs are required by the buyer\u2019s lender, which are structural or safety issues that need to be addressed, and which are cosmetic and not necessary to close the deal, said Shane Neal, a veteran agent in the San Antonio, Texas, area, who sells 18% more homes there than the average agent.<\/p>\n\n\n\n

Helps you stage your home:<\/h4>\n\n\n\n

Home staging, which pares down clutter and revamps rooms to show off their purpose and features, helps properties spend 86% less time on the market, according to the Real Estate Staging Association (RESA). One RESA study found that without home staging, properties spent an average of 107 days on market compared to those that were staged, which sold between 18 and 25 days. Much of this benefit shines through marketing, including online photos, videos, and 3-D virtual tours.<\/p>\n\n\n\n

Markets your home:<\/h4>\n\n\n\n

Listing agents often arrange for professional photography of your home\u2019s interior and exterior, videos, live walk-throughs, and 3-D virtual tours. Heuser says his office provides a landing page for each property they sell with such information.<\/p>\n\n\n\n

\u201cBuyers right now are demanding to have video. We have water running, a ceiling fan spinning, fireplaces going \u2014 it just really creates more of an ambiance. It makes buyers want to see the house.\u201d<\/p><\/blockquote>\n\n\n\n

These marketing efforts can also help you as the seller cut back on needless showings. If [potential buyers] can do this virtual tour and see that they do not want the house, then we don\u2019t need them to go through the house,\u201d Heuser says. \u201cIf they\u2019re like, \u2018Wow, I think that this is a good fit for me,\u2019 then when they actually go inside the house, that is a more legitimate showing.\u201d<\/p>\n\n\n\n

Negotiates on your behalf:<\/h4>\n\n\n\n

A real estate transaction has more moving parts than many of us realize. Beyond coordinating showings, an experienced listing agent helps you and the buyer arrive at a sales price, iron out any contingencies (such as a mandatory appraisal for financing), and navigate any problems with the title search, as well as the closing details. Those are all steps where you won\u2019t want to feel like you\u2019re in over your head.<\/p>\n\n\n\n

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What value does a listing agent offer versus selling your home yourself?<\/h3>\n\n\n\n

In addition to the responsibilities and offerings mentioned above, a listing agent is there to be a sounding board and confidante throughout your transaction. The listing agent will communicate with the buyer\u2019s agent on your behalf, and provide guidance each step of the way. They will help you negotiate the best price and terms for your real estate contract, and provide insights into your local market.<\/p>\n\n\n\n

Let\u2019s say you receive an offer that\u2019s $15,000 under the asking price. Your knee-jerk reaction could be to reject it outright and say, \u201cSorry, that\u2019s too low.\u201d An agent who is one step removed from your personal connection to the sale might be able to walk you through more viable options and considerations to keep in mind. They may point out that the buyer is well-qualified, or can offer you a flexible move-out date, or would be open to your counter offer. Now you\u2019ve turned an emotional reaction to a low offer into an opportunity to hammer out an attractive deal.<\/p>\n\n\n\n

How does someone become a listing agent?<\/h3>\n\n\n\n

Any real estate agent must be licensed, although the requirements vary by state. Regardless, their experience pays off: A top agent who puts in 60 hours or more a week earns a median of $100,000 a year, compared to those who work less than 20 hours a week and earn $8,930, according to one NAR survey.<\/p>\n\n\n\n

While there\u2019s no industry prerequisite or exam to separate listing agents from selling agents (a.k.a. buyer\u2019s agents), real estate offices can set their own requirements. On Heuser\u2019s team, agents must close a minimum of five transactions working with buyers before they\u2019re allowed to work with sellers on the listing side. The team also has an administrative assistant who only works on listings because of the marketing and other skills required.<\/p>\n\n\n\n

How does a listing agent get paid?<\/h3>\n\n\n\n

The listing agent and the buyer\u2019s agent both are paid by commission, also called \u201ccooperative compensation,\u201d or \u201cco-op\u201d in agent terms. The national average real estate agent commission rate is 5.8% of the sales price, which is split between the agents facilitating the sale. (Curious about what the commissions are in your area? You can access local commissions data for your city with our handy Agent Commissions Calculator.)<\/p>\n\n\n\n

Because each side takes half of the commission, the listing agent calculates both their commission and the buyer\u2019s agent\u2019s commission upfront in the asking price. A strong listing agent will find out what commission other sellers in the area are paying so that your listing is competitive with those; otherwise, a buyer\u2019s agent might be tempted to show clients only the properties with higher commissions, even though guidelines such as the NAR\u2019s Code of Ethics & Standards of Practice don\u2019t allow this.<\/p>\n\n\n\n

\u201cRules, laws, and ethics are different than what truly happens in the marketplace,\u201d Heuser says. \u201cYou could really be doing your seller a disservice if you are a weak agent and you tell them to discount that commission, but the other sellers in the same area are offering higher commissions.\u201d<\/p>\n\n\n\n

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How to find a good listing agent<\/h3>\n\n\n\n

Whether you find a listing agent through Housing Market Group’s network websites<\/a> or another means, such as a friend or relative\u2019s referral, you\u2019ll want to ask certain questions:<\/p>\n\n\n\n