The listing agency is the real estate agency under which a property is listed for sale.
How Listing Agency Works
A listing agency performs a variety of duties for a seller. Those who wish to list a property for sale would contact a listing agency, commonly known as a real estate agency, to host the listing. Having a listing agency hold the property exposes the property to a larger audience. This, in turn, increases the home's chances of a higher sale price. The agency then assigns the seller a listing agent.
The listing agent is typically an employee of the listing agency. The agent is responsible for pricing the property at hand. Their pricing guidelines will follow the property's value and the local market. In addition to pricing, the listing agent may also responsible for marketing the property. Some listing agencies will market the listing for the agent. By offering guidance in how to best make your home attractive to buyers, the listing agent is in a prime position to sell your property at the highest value. A listing agent will take the property to be sold and upload that listing in two places. Each property will be listed on the Multiple Listing Services (MLS) site for the local region and with the listing agency that employs them.
Once the listed property is sold, the listing agency takes a fee from the final sale price. After taking their commission, the agency then passes down a designated percentage to the listing agent. Because everyone involved in the sale of the property stands to make a profit, the listing agency's end goal is to sell the property for the highest price.
Example of Listing Agency
John decided to sell his home and needed to list his property on the MLS, so he went to his local listing agency. Once there, the agency assigned a listing agent. The listing agent went to John's home and decided that it needed some adjustments for the property to fetch the best price. The listing agent then gave John set tasks, such as painting the interior of his home and purchasing updated appliances.
Once John made these adjustments, the listing agent came to the home, took flattering pictures of the property, and adjusted their original estimate for the home's value. They then listed the property on both the local MLS page and with the listing agency that employs them. Once the property had garnered some interest, another real estate agent held showings. Once John had a buyer interested in the property, the listing agent worked with the listing company to obtain bids and begin the closing process.
Because the listing agent guided John in making some minor improvements, they were able to accept a bid significantly higher than the original value of the home. This means that John made a profit on his home, and the commission received by the listing agency was higher than expected. The listing agent then made a larger commission as well.