Listing Agent vs. Selling Agent
I would like to provide an answer to a recent question that was posted to my blog:
how do you know when you have a realator who is signing a contract to sell your house and not in the business to sit back and watch other agencies sell it and they get some of the profit, we had this experience. House did not sell, our agency only showed
Usually, but not always, the real estate agent who ends up providing a buyer for your home is not the same agent who lists your home for sale. When you place your home on the market, the agent you hire to market your home is referred to as the Listing Agent. His or her job is to market your home, help you make the home "show ready," assist you with the related paperwork, negotiate on your behalf, advise you regarding offers on your home, otherwise represent you and assist you throughout the real estate process.
On the other end of the spectrum is the agent who is assisting buyers. This agent's job is to help a buyer determine an appropriate price range, show the buyer houses online and in person, help the buyer find financing, insurance, and other such needed real estate related products, represent the buyer in negotiations, assist the buyer with the required paperwork, and otherwise walk the buyer through the home buying process. This agent is referred to as a buyers agent or a selling agent.
Generally speaking, a Realtor is competent at representing buyers and sellers alike--just not on the same transaction. Part of the marketing of your property is placing it in the MLS--a database accessible by all members of the National Association of Realtors. This database placement is what allows other agents to know about your house. Most agents are working with 6 or 10 or more buyers at any given time. To maximize the exposure of your home to as many buyers as possible, the listing agent shows your home to as many buyer agents as possible, who then show their buyers. The only way to get those buyers' agents to show the property is for the listing agent to pay the agent who finds a buyer. While it might seem like your listing agent didn't do anything, it is through his or her efforts that the buyers agents learned of the house. Perhaps the most important part of the listing agent's marketing plan is to sell the value of your home to other agents so that those other agents will want to show the home to their buyers.
I hope this explains how the system works. Please keep the questions coming!