Listing Broker: Meaning, Responsibilities, Qualifications

What Is a Listing Broker?

A listing broker or listing agent is a real estate professional who assists a homeowner with listing and marketing their home for sale. Some of the duties of a listing broker include determining an appropriate price for the home, establishing a listing, and holding open houses for prospective buyers. They also work with the buyer’s agent—also referred to, oddly enough, as the selling agent—to coordinate the sale of the home.

Duties and Responsibilities of Listing Brokers

To understand listing brokers, it’s helpful to first review the difference between a real estate agent and a real estate broker. An agent is someone who is licensed by their state to help people buy and sell different types of property. A real estate broker is an agent who has received an additional broker’s license. In general, brokers have more in-depth knowledge of the real estate market and the various financial and legal processes involved in selling and buying properties.

A listing broker is someone who assists property owners with the listing, marketing, and selling of their property. This can be a residential property, such as a primary residence or vacation home, but listing brokers can also work with commercial property owners. Listing brokers help the seller with a variety of tasks, including:

• Staging the property for sale
• Hiring someone to photograph the home
• Determining an appropriate sale price for the property
• Establishing a listing for the home through a multiple listing service (MLS)
• Scheduling and holding open houses
• Negotiating offers with the buyer’s agent

Once a property is listed, the listing broker is responsible for fielding offers from buyers. The broker can work with the seller to vet offers and determine whether to accept, make a counteroffer, or reject based on the offered price or other factors, such as whether they’re pre-approved for a mortgage.

Listing Broker vs. Selling Agent

Just as the seller in a real estate transaction may be represented by a broker, so may the buyer. Eighty-six percent of people who bought a home in 2023 did so with the help of a real estate agent.

The buyer’s agent is also referred to as the selling agent once an offer has been accepted and a property is under contract. Note that the terms "seller's agent" and "selling agent" mean two different things and actual point to two different individuals. In terms of what a buyer’s agent (i.e. the selling agent) does, the list includes:

• Helping buyers identify properties that may fit their needs and budget
• Contacting the listing agent to schedule a showing
• Drafting an offer and forwarding it to the seller’s agent
• Walking the buyer through the remaining steps of the home-buying process once an offer is accepted

The selling agent can also communicate with the listing broker if issues arise during the home-buying process. For example, if the home inspection reveals one or more structural issues, the buyer’s agent can reach out to the seller’s agent to discuss whether the seller will make any necessary repairs themselves or offer a concession for them.

Listing Broker Qualifications

When looking for a listing broker, consider the following qualifications that may substantiate whether or not an individual is suitable to list your home.

• Real Estate License: The listed broker should be in possession of an active license to practice real estate in the state or region in which they conduct business. This license demonstrates that the holder has successfully completed the appropriate coursework and examinations in order to engage in real estate brokerage activities.
• Realtor Designation: Real estate professionals who are members of the National Association of Realtors are qualified to use the Realtor moniker. Realtors are required to abide by a rigorous code of conduct and have access to a variety of supplementary materials as well as opportunities to network.
• Professional Distinctions: Some listing brokers may have extra qualifications or distinctions to demonstrate their knowledge in specialized areas of real estate. These certifications and designations are known as "professional designations." For instance, those who earn the Certified Residential Specialist title have demonstrated a high level of expertise in residential real estate.
• Local Market Expertise: An excellent listing broker has to have a solid comprehension of the real estate market in the local area. They should be knowledgeable on the most current sales trends, property values, the dynamics of the surrounding area, and any other important elements that can influence the sale of your house.
• Good Reputation and References: It is important to investigate the reputation of the listing broker and to request references from previous customers. The level of professionalism they maintain, the extent of their communication abilities, and the quality of their work can be gleaned via online evaluations, testimonials, and word-of-mouth referrals.

Listing Broker Compensation

Listing brokers and listing agents are paid a fee for their services in assisting a seller, though they’re typically paid only if the sale is completed. Traditionally, a typical commission associated with the sale of a home is around 6% of the home’s sale price. This commission is split equally between the listing broker or agent and the buyer’s or selling agent.

Real estate commissions are usually paid by the seller of the home out of the proceeds of the sale. For example, say you owe $200,000 on your home. Your listing agent is able to sell it for $400,000, resulting in a $200,000 profit to you. If you assume a 6% commission rate, then you would need to pay $24,000 in commissions ($400,000 × 0.06). Of that amount, $12,000 would go to the listing broker or listing agent, and $12,000 would go to the buyer’s agent. Your net profit would be $176,000 ($200,000 - $24,000).

There are some situations, however, in which a listing broker might be able to collect both commissions. Specifically, they can do so if they’re acting as a dual agent. A dual agent in real estate represents both the buyer and the seller of the property. Dual agency is not allowed in all states, and when it is permitted, the agent must adhere to a fiduciary duty when acting on behalf of the buyer and the seller.

The Bottom Line

A listing broker can make selling a home easier, though hiring one isn’t a necessity for property owners who are comfortable selling on their own. When working with a listing broker or agent, consider their track record, reputation, and overall expertise. It also can be helpful to ask questions about how often they’ll communicate with you during the process of selling your home and how they prefer to communicate. This can give you an idea of what to expect during the time that you’ll be working with them to sell your home.

Finally, you can review the best real estate websites to see how much homes like yours are selling for in your area when deciding how much to list your property for.