LISTING VS BUYER’S AGENT- THE DIFFERENCE?
In a home sale, listing (seller’s) agents and buyer’s agents play distinct roles.
The listing agent (or seller’s agent) represents the homeowner selling the property, while the buyer’s agent represents the prospective buyer. A listing agent’s goal is to market the home and negotiate the best price/terms for the seller, whereas a buyer’s agent works to find suitable homes and negotiate purchase terms on behalf of the buyer. Below we compare each role’s responsibilities, client support, compensation, and the pros and cons of hiring them.
LISTING (SELLER'S) AGENT
A listing (seller’s) agent works for the homeowner to sell a property. Their main responsibilities include:
Pricing strategy – Conducting a market analysis (CMA) of comparable homes to set an optimal listing price. The agent advises the seller on pricing and may suggest upgrades or repairs to improve the home’s value
Home preparation – Guiding the seller in staging and improving the home’s appeal. This includes decluttering, light repairs, and professional staging or photography to attract buyers
Marketing – Creating and executing a marketing plan. The agent lists the home on the MLS and other platforms, advertises it (online ads, flyers, social media), and often hosts open houses or virtual tours
Showings and open houses – Scheduling and managing all showings. The listing agent coordinates with buyer’s agents, conducts open houses, and ensures the home is presented well to potential buyers
Negotiation of offers – Receiving buyer offers and negotiating terms on the seller’s behalf. The agent counsels the seller on how to respond to bids (price and contingencies) and strives to secure the highest price and favorable terms
Transaction management – Handling contracts, legal disclosures, and paperwork. A seller’s agent ensures all required documents (disclosures, titles, contracts) are completed correctly and meets deadlines through closing
Support for the seller: The listing agent acts as the seller’s advocate. They use market expertise to price the home competitively and expose it to many buyers, helping the home sell faster and potentially at a higher price. They reduce the seller’s workload by managing showings, negotiating with buyers, and taking care of closing details. For example, agents have up-to-date data on what homes are selling for and what features buyers want, which helps the seller make informed decisions
Compensation: Listing agents are typically paid on commission. The standard commission is about 5–6% of the final sale price. This fee is agreed upon in the listing contract and is usually deducted from the seller’s proceeds at closing. Traditionally, this total commission was split roughly in half – about 2.5% to the listing agent and 2.5% to the buyer’s agent. (In practice, the split can vary by agreement.) However, under 2024 rule changes, sellers no longer pay the buyer’s agent on the MLS; buyers now negotiate their agent’s fee directly. Sellers can still agree privately to cover part of the buyer agent’s commission or offer credits, but this cost ultimately shifts toward the buyer in many cases.
Benefits to the seller: Hiring a good listing agent can help sellers get a higher price and sell more quickly. Agents bring expert pricing advice (CMA data), professional marketing, and negotiation skills. They also handle all the complex paperwork and legal requirements, reducing the seller’s stress. An experienced agent’s network and advertising reach more qualified buyers than a seller could alone. As one guide notes, agents provide up-to-date market information and know “what buyers are looking for,” which is crucial to selling effectively.
Pros of a listing agent:
Market expertise: They can set a competitive price and advise on home improvements, often resulting in a better sale price
Extensive marketing: They list the home on MLS and use professional photos and promotions to attract many buyers. Time and convenience: The agent handles showings, calls from buyers, and complicated paperwork, saving the seller effort and reducing legal risks.
Cons of a listing agent:
Cost: The seller pays the agent’s commission (typically ~5–6% of sale) which lowers net proceeds
Potential conflict of interest: Rarely, if one agent represents both seller and buyer (dual agency), the interests of one side can be compromised. Dual agency is generally discouraged (and illegal in some states) because an agent cannot fully advocate for both parties
Less control: The seller must rely on the agent’s judgment for showings and negotiations. If the agent’s strategy or work ethic is lacking, the seller may not get the best outcome (though fiduciary duties legally bind the agent).
Hiring a good listing agent can help sellers get a higher price and sell more quickly. Agents bring expert pricing advice (CMA data), professional marketing, and negotiation skills.
DLD REAL ESTATE ADVISORS
BUYER’S AGENT
A buyer’s agent represents the homebuyer. Their key responsibilities include:
Understanding buyer’s needs: Helping the buyer clarify their budget, preferred neighborhoods, must-have features, and long-term goals. An agent offers advice on setting realistic priorities within the buyer’s budget
Property search: Using their MLS access and market knowledge, the agent finds homes that match the buyer’s criteria (often including listings not easily found by the public)
Showing properties: Setting up and attending home tours and open houses. The agent coordinates with listing agents to schedule showings and accompanies or sometimes shows properties to the buyer
Offers and negotiations: Advising on an offer strategy (price and contingencies), preparing the purchase contract, and submitting the offer to the seller’s agent. They negotiate terms like price, closing date, repairs, and contingencies on the buyer’s behalf
Due diligence: Helping the buyer arrange inspections, appraisals, and reviewing condition reports. The agent can spot “red flags” (problems or safety issues) in a property and guide the buyer on responses
Closing support: Coordinating with lenders, title companies, and attorneys. A buyer’s agent helps manage deadlines, ensures all paperwork (loan documents, disclosures, etc.) is completed, and assists the buyer through closing
Support for the buyer: A buyer’s agent is legally bound to protect the buyer’s interests. They provide market data and neighborhood insights, help prioritize features, and often know how to spot problems a novice buyer might miss. For example, working with an experienced buyer’s agent makes it “easier to identify and navigate issues early in the process,” and they will “facilitate the home inspection, negotiate contingencies and assist the buyer through the closing paperwork” Essentially, the agent guides the buyer through each step, reducing errors and stress.
Compensation: Buyer’s agents also work on commission. Traditionally, the buyer’s agent’s commission (around 2–3% of sale price) was paid by the seller from the sales proceeds. Under the new rules (August 2024 onward), buyers must negotiate and pay their agent’s fee directly. In practice, a buyer will typically sign a contract agreeing to pay the agent’s commission (sometimes partially offset by what the seller is willing to contribute). In other words, the buyer should expect to cover approximately 2–3% unless the seller offers to pay some or all of it. (Agents must now provide a written fee agreement to buyers before showing homes.
Benefits to the buyer: Hiring a buyer’s agent can make house-hunting more efficient and less risky. Agents have MLS access and often alert buyers to new listings faster, saving search time. They also bring negotiation skills, which can lead to a better purchase price or terms. Importantly, a buyer’s agent works to protect the buyer’s interests: they point out problems in homes (“spot red flags”) and ensure the contract safeguards the buyer, whereas the seller’s agent is obliged to seek the highest price for the seller. As one source notes, buyers without an agent might miss crucial issues, while an agent “bargains with the seller on the selling price” and handles contingencies and inspections on the buyer’s side. Overall, an agent helps streamline the process and can prevent costly mistakes.
Pros of a buyer’s agent:
Advocacy: The agent is committed to representing the buyer, ensuring the buyer’s concerns come first
Expert negotiation: They use market knowledge to negotiate a fair price and terms, often saving the buyer money or getting concessions (e.g. repairs, credits).
Convenience: Agents arrange viewings, organize paperwork, and coordinate with inspectors and lenders. Without an agent, buyers often spend “a lot more time and effort” on the homebuying process
Access and insight: They can find listings quickly, sometimes even pre-market opportunities, and advise on neighborhoods and pricing.
Cons of a buyer’s agent:
Cost: The buyer usually pays the agent’s commission (commonly ~2–3% of the sale price. Although buyers often think the seller pays, in reality commissions tend to be baked into the sale price, so buyers indirectly cover them. In any case, hiring an agent means additional cost at closing (or via negotiation).
Finding the right agent: It can take effort to find a skilled, trustworthy agent. If the agent isn’t a good fit, the buyer may not get the full benefit of representation. As one guide notes, buyers sometimes find it challenging to “find the ‘perfect’ agent that understands your wish list”
Possible over-reliance: A buyer must be sure to communicate clearly with their agent, as agents work based on the buyer’s directives. Miscommunication can lead to missed opportunities or frustration.
In summary, listing agents and buyer’s agents serve opposite sides of a home sale. Listing agents focus on selling efficiently at the best price, while buyer’s agents focus on finding and securing the right home for the buyer. Both are generally paid by commission and provide expertise, negotiation, and administrative support. Sellers benefit from a listing agent’s market knowledge and marketing power, whereas buyers benefit from a buyer’s agent’s guidance and advocacy. Each type of agent has costs (commissions) and requires trust, but their services can greatly simplify the real estate transaction for their client
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