When it comes to the property industry, there are various types of agents that can be involved in a sale. In Malaysia, the two commonly known types of agents are the listing agent and the selling agent.
So, what exactly is the difference between these two types of agents? Let us take a closer look.
What is a Selling Agent
The buyer’s agent is referred to as a selling agent when the two parties, buyer and property owner, agree on a price. The terms selling agent and buyer’s agent are frequently interchanged, yet their responsibilities are the same.
A selling agent locates properties that their buyers might be interested in purchasing, contact the listing agent to schedule viewings, presents offer from the buyers to the property owners, and assists the buyers with closing after an offer is accepted.
How Does a Selling Agent Get Paid
Buyers are fortunate since they may enjoy all of the benefits of working with a selling agent without having to pay anything. The selling agent is paid by the listing agent’s property agency, the buyers they represent are not responsible for any of the costs.
Selling agents work with the listing agents selling the property in exchange for a commission for introducing them to suitable buyers. The selling agent receives a commission from the listing agent for finding a buyer for the property.
The selling agent is entitled to their commission if their buyer submits an offer and the property owner accepts it.
What is a Listing Agent
In a property transaction, a listing agent represents the property owner. Their goal is to price the property competitively and then bring in potential buyers to see it.
Partnering with listing agents allows property owners to benefit from their expertise in the local property market. They have the most up-to-date and accurate information on similar property sales in the area, allowing them to price the property competitively.
Listing agents actively advertise the property once property owners have established a price. They will help property owners stage and decorate the property to make it appear its finest, and they will even hire expert photographers to take high-quality photos of it.
Listing agents do more than just display properties and arrange open properties; they also help potential buyers assess offers, ensuring property owners, their clients, get only serious bids.
When a property owner receives an offer, the listing agent guides them through the negotiations, assists with any paperwork, and eventually closes the deal. Listing agents normally charge a 3% fee on the sale price for these services, which is usually split with the selling agent.
How Does a Listing Agent Get Paid
The listing agent’s commission is technically paid by the property owner. When property owners engage with a listing agent, they usually have to sign an authorisation to sell agreement, which states that property owners will work with that listing agent to sell their property.
This agreement assures that when property owners close on the transaction, the listing agent receives a commission on behalf of their firm. The commission is then split between the selling agent and the listing agent.
Responsibilities of Selling Agent
No matter what type of property you are selling, there are specific responsibilities that come with the role of a selling agent. By understanding the key responsibilities of a selling agent, you can position yourself for success in this competitive market!
Share Properties That Satisfy the Needs of Their Clients
The buyer’s agent will present lists of properties that fulfil buyers’ budgets and preferred specifications. Buyer’s agents are often well knowledgeable about the local market and have a good idea of what properties will sell for.
Clients Go on Property Tours With Them
Selling agents also give their customers a presentation of the property, which includes showcasing the property’s best features, pointing out any red flags, and answering any questions or concerns the buyer may have.
Submit Offer to Purchase and Asist With Negotiations
The buyer’s agent helps buyers with negotiating once the buyers narrowed down the property they are interested in. Then buyer’s agent works with the listing agent to help their buyers receive the greatest price and agreement possible.
Recommend Other Professionals
Buyers may be needed to engage with a lawyer, a banker, and other professionals during the property buying process. Good selling agents will be able to refer buyers to recognised local professionals who have worked with them in the past and whom buyers can trust.
Responsibilities of Listing Agent
As a listing agent, you have a lot of responsibility to property owners. You are the expert when it comes to getting their property ready to sell and getting it in front of potential buyers.
Here are some outlines to help you stay organized and ensure success as a listing agent.
Set a Value on the Property
The listing agent will do research on similar properties that have recently sold in the area and provide the findings to property owners. The agent will also know how long it takes a typical property in the area to sell.
This information aids the listing agent in determining the fair market worth of the property and determining the optimum and most reasonable asking price at which to list it.
Authorisation to Sell Agreement
The authorisation to sell agreement, which is a legal contract that grants the agent the right to sell the property on behalf of property owners, is the first step in the selling process. The commission and obligations of the listing agent are detailed in this agreement.
A signed agreement delegates authority to the listing agent to promote and sell the property.
Get Ready for the Market
Listing agents’ obligations include advising property owners on making any modifications or renovations to the property to make it more appealing to buyers. Roof replacement, painting, thorough cleaning, and landscape enhancements are examples of possible improvements.
Advertise the Property
Listing agents will identify successful ways to sell the property to potential buyers after deciding on a suitable price plan. They craft the listing description, hang a For Sale banner in front of the property, and promote the property both online and offline.
Dealing With Offers
The listing agent helps the property owner examine all offers to the property owner. The listing agent negotiates transaction terms with the buyer’s agent if the property owner agrees to accept an offer.
An excellent listing agent maintains in touch with the property owners on a regular basis, reacts swiftly to any queries, and keeps any discussions on track. The listing agent’s function, however unofficial, is to keep everything as stress-free as possible.
Completing the Deal
The listing agent may recommend a lawyer and other professionals based on their track record for a timely closing. The listing agent keeps the customer informed about the closing date and ensures that everything goes as smoothly as possible.
Untapped Opportunities to Become Property Agents in Malaysia
If you are interested in becoming a property agent in Malaysia, it is important to understand the difference between a selling agent and a listing agent.
A selling agent is someone who represents the owner of the property during negotiations with potential buyers. A listing agent is responsible for marketing and finding buyers for a property that has been put up for sale by the owner.
If you are thinking about becoming a property agent, contact us today to learn more about registering as an agent in Malaysia.