First thing’s first… Below is some vocabulary that is frequently used when talking about real estate.
A listing agent is the one agent that listed the specific property for sale. A buyer’s agent is a real estate agent that will represent a buyer. When a buyer is interested in a specific property, they should contact their buyer’s agent to make an appointment. What a buyer’s agent will do is, contact the listing agent. The listing agent has the keys to the property that is for sale. Once the buyer’s agent contacts the listing agent, they will coordinate a day and time to meet at the property to let the buyer, and buyer’s agent into the property.
Multiple Listing Service (MLS) The website/inventory all listing agents will list their homes they capture for sale & where all buyer’s agents look for homes that are for sale to show their clients that are searching for homes.
How Do Listing Agents Get Paid?
Typically, in every real estate transaction, someone who wants to sell their home will call a real estate agent to list their home for sale. The listing agent will list the home for sale on MLS, and charge a 5-6% commission/listing fee. The commission/listing fee will be based off of the sale price of the property. Upon a successful sale of the property, the listing agent will receive a commision check at the closing. If the home doesn't sell, then the real estate agent’s service will not be paid for. In order to sell a house, there has to be a buyer, and 9 out of 10 times, a buyer will have a buyer’s agent represent them. Well, you may be wondering how do buyer’s agents get paid? That leads us to the next topic...
How Do Buyer’s Agents Get Paid?
A buyer’s agent will refer to MLS to search through the inventory available to show their clients who are searching for homes. In order to have inventory to search for on MLS, buyer’s agents need listing agents to list homes for sale on this site. On the other hand, listing agents need buyers agent’s to search for their listings on MLS to bring buyers to their listing. Yet again, a listing agent can’t sell the home they listed for sale without a buyer’s agent bringing a buyer to the property. A listing agent is just as important is a buyer’s agent. This being said, a listing agent will typically offer half of their commission/listing fee they are sent after the sale of their home to the buyer’s agent who is involved in the transaction.