Do you need a buyer or listing agent, or is it better to go with any agent? In this article, we take a look at the critical role each plays and why choosing the right one matters for your situation.
When entering the real estate market, understanding who represents whom is crucial to a successful transaction. A listing agent works exclusively for property sellers, while a buying agent serves only the homebuyer’s interests. This fundamental difference shapes how these professionals approach every aspect of a real estate deal.
“Choosing the right representation can make all the difference in your real estate journey,” says , a long-time realtor focused on the Quad Cities. “Having the proper advocate in your corner can save you thousands of dollars and countless headaches throughout the process.”
The key distinction lies in whose interests the agent is legally and ethically bound to protect. Listing agents focus on getting sellers the highest possible price and most favorable terms. Their expertise lies in pricing homes correctly, creating compelling marketing materials, and negotiating from the seller’s perspective.
On the other hand, buying agents dedicate themselves to helping buyers secure their ideal property at the best possible price. They search listings, arrange viewings, provide neighborhood insights, and negotiate to ensure favorable terms for the buyer.
With the real estate market constantly shifting, having an expert who understands your specific needs is invaluable.
A buyer's agent is your dedicated advocate in the home purchasing process. Their primary goal is to help you find and secure the perfect property that meets your needs, preferences, and budget.
First and foremost, buyer's agents conduct thorough property searches tailored to your specific requirements. They access the Multiple Listing Service (MLS) and other resources to identify potential homes, saving you countless hours of browsing listings that don't match your criteria.
When it comes to property viewings, your buyer's agent will schedule and accompany you to showings, pointing out features you might miss and raising red flags about potential issues. They'll help you evaluate neighborhoods, school districts, and other important location factors that affect both livability and resale value.
Perhaps most importantly, a buyer's agent provides crucial market expertise. They know local trends, fair market values, and can help you determine if a property is reasonably priced. This knowledge proves invaluable during the offer and negotiation stages.
Speaking of negotiations, your buyer's agent will help craft competitive offers and negotiate terms on your behalf. They understand contract language and can help you include appropriate contingencies to protect your interests.
On the other side of the transaction, listing agents provide specialized services for homeowners looking to sell. Their expertise begins with pricing strategy, conducting comparative market analyses to determine the optimal listing price that attracts buyers while maximizing returns.
Marketing is another crucial service provided by listing agents. They create professional photography, compelling property descriptions, and comprehensive marketing plans to showcase a home in its best light. This may include digital marketing, open houses, broker tours, and targeted outreach to potential buyers.
When offers arrive, listing agents evaluate them thoroughly, explaining the pros and cons of each. They negotiate on the seller’s behalf to secure the best possible price and terms, often managing multiple offers in competitive markets.
Throughout the closing process, listing agents coordinate inspections, appraisals, and other necessary steps. They work closely with title companies, lenders, and the buyer’s agent to ensure a smooth transaction and resolve any issues before closing day.
The most fundamental difference between buying and listing agents is their fiduciary responsibility. A buyer's agent is legally obligated to represent your interests as a purchaser, while a listing agent's loyalty lies with the seller. This distinction affects every aspect of how they approach the transaction.
Listing agents focus on presenting properties in the most appealing light to attract qualified buyers. They emphasize positive features while being careful to disclose required information. Buying agents, however, view properties with a more critical eye, looking for potential issues and considering how well a home meets their client's specific needs.
During negotiations, listing agents work to maximize the seller's proceeds and minimize concessions. Buyer's agents negotiate for the opposite, as they aim to secure the best possible price and terms for the buyer, including potential seller concessions for repairs or closing costs.
The way real estate agents get paid has traditionally followed a standard model: the seller pays a commission (typically 5-6% of the sale price) that gets split between the listing and buying agents.
Now, because of the 2024 NAR settlement, buyers must sign a contract with their agent that clearly outlines compensation terms. While it's still common for sellers to cover the buyer's agent commission in most markets, this is no longer guaranteed. Buyers should discuss compensation structures upfront with their agent and understand who will be responsible for paying these fees.
Listing agents continue to earn their commission directly from sellers, typically receiving payment once the sale closes. This commission is usually split with the buyer's agent according to terms agreed upon in the listing contract and through the MLS.
Though both types of agents need comprehensive market knowledge, they develop specialized expertise based on their client focus. Listing agents become experts at property valuation, marketing strategies, and maximizing seller returns. They know which improvements yield the best ROI and how to position homes for maximum appeal.
Buying agents develop deep knowledge of neighborhoods, property types, and common issues that might affect long-term value. They become skilled at matching client needs with available inventory and spotting potential problems during property viewings.
Selecting the right real estate professional is crucial to achieving your property goals. Whether buying or selling, here's how to find an agent who will best serve your needs:
"Remember, the right agent for your neighbor might not be the right agent for you," says DeWulf. "Your specific needs, budget, timeline, and personality should all factor into this important decision."
For those seeking the services of a buyer or listing agent, Sara DeWulf is one of the few who handle both.
