Yes, there’s a difference between a listing agent vs. buyer’s agent, but it’s not as obvious as the name implies. Here’s what to know and how to choose your agent.
Do you know the difference between a listing agent and a buyer’s agent? The simple answer is in the name: a listing agent represents the seller while the buyer’s agent represents the buyer.
But there’s more to it than this, and knowing the differences can make an impact in your home selling and buying experience.
Here’s a closer look at why choosing a listing agent or buying agent matters and what to do next.
Listing Agent vs. Buyer Agent: Duties
The main difference between listing and buyer agents is who they help and the duties they perform during a real estate transaction.
Buyers agents focus on helping buyers find their new home. They work with buyers to determine their criteria, then take buyers on a tour of homes for sale that meet their needs. It’s a lot like matchmaking. And when it’s time to put in an offer, the buyer’s agent will draw up an official offer and present it to the seller’s agent, who will then connect with their clients.
Listing agents, or seller’s agents, have their name on the home’s listing. They work directly with the seller when it comes to setting a price, putting the home on the market, and marketing the home locally and online. They might host open houses or run paid ads for the home. They manage the listing on the MLS and work with the buyer’s agent during negotiations.
Listing Agent vs. Buying Agent: Costs
Another notable difference in using a listing agent vs a buyer’s agent is the cost. For buyers, their agent’s services are 100% free. The seller pays a commission upon the successful sale of their home, which is split between the buyer’s agent and listing agent. For the buyer, there is no financial risk in working with a real estate agent.
Real estate agent commission fees can range from 3% to 7% of the home’s final selling price. Because this comes directly out of the seller’s pocket, many sellers may wrap some of this cost into their home pricing strategy. This way, they still benefit from the service and expertise of an experienced real estate agent but don’t have to absorb the entire cost.
How to Choose the Right Real Estate Agent
Whether you’re buying a home in Toronto or selling your home to start a new journey, it’s best practice to partner with a real estate agent that has experience on your side of the transaction. Both buyers and sellers can benefit from the expertise of a bona fide agent, especially when it comes to negotiations, contracts, and closings.
On average, homes listed by an agent sell for more money, even when accounting for commission costs. And working with a buyer’s or listing agent means not having to take on the entire process on your own. Let your agent do the work for you so you can focus on the things that matter most.
At Steven Sarasin Real Estate, our team is experienced in representing buyers and sellers to help you reach your goals. Contact us today to start your next adventure!