A listing broker is a real estate agent who holds the listing for a piece of real estate. The listing authorizes the listing broker to perform services on behalf of the property owner, such as advertising the property in real estate magazines. This real estate agent receives a commission when the property is sold, with the amount of the commission varying, depending on the terms of the contract. Sellers should be careful, because the listing broker is not the only agent to whom they may owe a commission at the conclusion of a successful sale.
When people decide to sell their properties, they have a number of options. Some people prefer to handle the sale themselves, although they recognize that they may not always get the best price. Others like to work with a listing broker, or several listing brokers, to sell the property. The broker and client arrive on the terms of the contract, which include what kind of listing it is and what the broker's commission will be. Listing brokers tend to lean towards exclusive right to sell listings, which guarantee their commissions, but open listings can be better for the property owner.
Once the listing broker has the listing, he or she can start advertising the property, showing it, and making recommendations to the seller. The listing broker may recommend minor repairs, painting, or other activities which are designed to present the property in the best light. These measures are designed to increase the sales price. Small investments in appearance often pay off in a large way in the long term, and listing brokers often encourage their clients to complete needed work and to stage the property so that it looks present.
In addition to a listing broker, there may also be a selling broker, who finds a buyer and receives a commission as well. Buyers can also have their own brokers or agents, who also receive commissions. For buyers, it is important to be aware that a buyer's agent will represent the buyer first and foremost, but if a buyer does not have a contract with a buyer's agent, the agent may not necessarily always work with the best interests of the buyer in mind.
When seeking out a listing broker, it is advisable to find a broker with experience in the type of property being marketed, such as luxury property, commercial property, or single family dwellings. Especially if a property is unique or quirky, the right agent can make a big difference in the sales price.
