What Is a Listing Agent? Listing Agent vs. Selling Agent

Listing agents, also called seller’s agents, are real estate agents or real estate professionals responsible for listing property on behalf of clients looking to sell a piece of property. Depending on the terms of the listing agreement, listing agents will assist with pricing, staging, and marketing a home or commercial space to potential buyers, as well as arranging open houses or showings.

As licensed professionals, listing agents understand the real estate business and make appropriate transactions and sales that fulfill their fiduciary responsibility to their clients. A listings agent earns an agent commission, which is typically a percentage of the home sale price. A homeowner can also list their property on their own or represent themselves without the help of a listing agent. These properties are listed “for sale by owner” or FSBO.

While a listing agent represents a client who wishes to sell their property, a selling agent—also called a buyer’s agent—represents a client looking to buy property. Residential buyer’s agents represent current or aspiring homebuyers interested in finding a residence in their price range that has everything they want for their purchase price. Commercial buyer’s agents do the same thing but for property meant for a business. They will also assist in offer negotiations, real estate inspections, or finding a real estate attorney.

Some agents work as both the buyer and the seller of a property. Real estate agents call this a dual agency sale or dual representation and, because there are possible conflicts of interest that may break their code of ethics, it is not allowed in Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas, and Vermont. However, many states get around this predicament by having different agents within the same brokerage represent the buyer and seller of the property.

A listing agent has several responsibilities, including:

• Navigating the home-selling process: A listing agent can walk home sellers through every step, from determining the initial asking price based on the local home market to attracting prospective buyers with a good marketing plan to making the final home sale.
• Knowing the market: A listing agent will have strong knowledge of the local market and will often use multiple listing services— real estate listing search engines for homes in a particular area—to perform a comparative market analysis to determine the sale price, or how much you should put your house on the market for based on market conditions.
• Helping sellers make decisions: A professional listing agent specializes in selling homes and possesses the know-how to help you make decisions based on the housing market. A listings agent with years of experience will help you get the true market value out of a home sale.

If you want to enter the real estate industry as a listing agent, you must learn the real estate business and real estate laws and fulfill your state’s education and licensing requirements. Becoming a real estate agent usually takes between four and six months, depending on your state’s requirements. Here’s a step-by-step guide to starting your real estate career and becoming a listings agent:

1. 1. Determine the requirements in your state. Every US state has slightly different requirements and expectations of a real estate and listing agent, so the first step is to research your state’s particular requirements. Take note of age, education level, or background check requirements, as well as your state’s pre-licensing courses, exams, and activation fees.
2. 2. Take pre-licensing courses. Once you’ve confirmed that you’re eligible to become a licensed agent in your state, sign up for the pre-licensing course, which will teach you everything you need to know about real estate principles—from new homes to escrow. Real estate courses vary widely by state, ranging from around sixty hours of work (in Florida) to around 180 (in Texas). Most states offer different options for courses—such as online courses, coursework at a real estate school, or classes at a local community college—so choose the option that works best for your learning style and schedule.
3. 3. Take the licensing exam. After passing your pre-licensing course, you must take the official real estate license exam that your state’s real estate commission offers. Your pre-licensing class should cover the necessary information, but you can also complete special exam prep for additional preparation. The exam varies by state, but all are multiple-choice and take between ninety minutes and three hours to complete. If you fail to pass the first time, you can likely retake it. But check with your state rules about how long you have to wait and how many times you can retake it.
4. 4. Activate your license. Once you pass the licensing exam, submit your license and application (along with state fees) to your state’s real estate agency.
5. 5. Join a real estate broker. Licensed real estate agents cannot work in the real estate market on their own—they must work under the umbrella of a licensed real estate brokerage. Once you have a license, research brokers in your area and identify one with a good reputation in your area of interest.
6. 6. Increase your credentials (optional). After becoming a licensed real estate agent, you may want to increase your certifications for credibility purposes or increased earning potential. Or you may want the freedom to start your own firm. Continuing education options include becoming a realtor—a member of the National Association of Realtors (NAR) with access to additional tools, market research, and real estate education courses—or getting a broker license, a license to run your own firm.

All investments, including real estate investments, come with inherent risks which may involve the depreciation of assets, financial losses, or legal ramifications. The information presented in this article is for educational, informational, and referential purposes only. Consult a licensed real estate or financial professional before making any legal or financial commitments.

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