Buyers, sellers, investors, welcome back to another installment of Real Estate Jargon, aka, simple explanations of sometimes confusing real estate terms. Today, we’ll look at the sometimes confusing definitions of listing and selling agents in real estate transactions.
When we sell our home, we typically seek out a licensed real estate professional to “list” our home on the local Multiple Listing Service (MLS). The term “list” is an action verb that has its roots in the practice of adding our home to a list of properties for sale by the broker we hired. Some time ago, the list became “multiple” when brokers began circulating their lists (also called “listing books”) among all the brokers in the area to generate maximum exposure of the properties available for purchase. This central database went from being a folder full of flyers to a computer printout and, eventually, to the full featured online information source that we have today. Although listing systems have greatly improved, the “listing agent” remains the real estate professional whom we hire to add our property to the MLS, market our property, help us analyze offers, and supervise transaction activities through closing.
Is the listing agent selling your home? In most instances, no. The listing agent markets the property to other agents and to the general public through their home marketing program. Agents who show the property to potential buyers are the “selling agent,” also frequently called a “buyer’s agent.”
Could the “listing agent” also be the “selling agent?” If seller and buyer agree, the agent could be both in a situation called “dual agency.” Because of obvious and substantial conflicts of interest that arise, I highly recommend that sellers specifically indicate in their listing contract that dual agency will not be permitted. Although legal in most states and done regularly by some agents, it’s a practice I personally don’t endorse.
I hope you found this information helpful. If you have questions about real estate jargon or real estate buy/sell/investment terms and strategies, drop me a line! john@jsrealproperty.com
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John A. Souerbry & Associates (DRE 01370983) www.jsrealproperty.com
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