Types of Real Estate Representation in Maryland | Terms and Definitions

In Maryland, numerous terms are used to describe real estate representation types. Listing agent vs selling agent, subagent vs dual agent… what’s the difference? Read on and learn about the various agency relationships!

TLDR;

Though certain words, such as listing agent vs selling agent, may sound similar, agent representation comes in two primary varieties: the Seller’s Agent (also called the Listing Agent) and the Buyer’s Agent (also known as the Selling Agent). The main difference is the represented party.

Did You Know?

A listing agent is called a listing agent due to their listing of a client’s home in the local MLS (in the Baltimore Metro, agents typically use Bright MLS). In contrast, a selling agent is called a selling agent due to their participation in acquiring the end buyer and writing the sales contract.

Agent vs Broker vs Realtor

Real Estate Agents

Real estate agents specialize in helping people buy and sell properties. Agents must be licensed and complete 60 hours of training. In Maryland, real estate agents may provide services on the listing or selling side of the transaction.

Real Estate Brokers

A broker is a licensed professional who acts as an intermediary between buyers and sellers, negotiating the sale of properties. Brokers must have been active agents for at least three years and have completed 120 hours of training. In Maryland, a real estate broker may represent both the buyer and the seller, while a real estate agent may represent only one.

REALTOR®

Realtors are agents or brokers who hold membership with the National Association of Realtors (NAR). They must adhere to a strict code of ethics, professional standards, and regulations. Realtors have access to a wide range of resources and tools to provide better client services. A selling agent and a listing agent may hold the title of Realtor.

Types of Real Estate Representation

Listing Agent vs Seller Agent

The seller’s agents (also called listing agents) are employed by either the seller or their representative to list, market, and ultimately help sell the property through a listing agreement. The listing agent holds a license in their state and is knowledgeable in the local market, pricing trends, buyer motivation, and deal negotiating skills required to secure the highest price promptly. The seller’s agent also satisfies all necessary paperwork and legal requirements. In addition, they will help manage any issues throughout the sale to ensure that the selling process proceeds smoothly.

Because real estate professionals work together in transactions, the listing broker pays out part of their commission to the buyer’s agent for their cooperation (in the form of a co-op commission, often confused as a “double” commission). These additional commission fees are necessary because buyers’ agents have pre-existing contracts with potential buyers—if the seller does not pay said commission, the potential buyer must, which can be a significant detractor in the sale.

Alternatively, a home seller may elect to utilize an open listing, which means that the brokerage (any brokerage) who brings the buyer may collect a commission. In this scenario, the seller may accept offers from any broker or agent on their property. The downside of this arrangement is that a majority of listing agent’s will not agree to non-exclusive contracts due to risk.

Buyer’s Agent vs Selling Agent

The buyer’s agents (also called selling agents) represent the buyer’s interests and help negotiate the best price and terms for their client. A buyer’s agent holds a license and has a thorough knowledge of current market conditions to advise their client on buying decisions. An agent can also help buyers understand all the processes involved in purchasing a home and can provide valuable insight into the local market from a buyer’s perspective. In addition, they will help manage any issues throughout the transaction.

A selling agent represents the buyer to help find, negotiate and purchase a home. The selling agent has fiduciary responsibility for assisting the buyer in identifying the best deal and evaluating the home sale terms. Selling agents will research the local market’s price conditions, compare properties, educate buyers about neighborhood amenities and pricing trends, coordinate inspections and walk them through the closing process.

Additionally, agents help schedule showings for potential properties and explain and review home inspection reports, negotiate necessary repairs, draft contract elements, and coordinate the signing of closing paperwork. The agents’ expertise and knowledge of the home-buying process are invaluable when navigating a transaction.

Did You Know?

The seller generally pays the selling agent’s fee, and listing agents share a portion of the total commission with the agent who brings a suitable buyer. It is paramount to ensure the buyer’s agent receives compensation at settlement.

Subagent (Seller’s Agent by Default)

A subagent is an agent who, by default, works on behalf of the seller’s agent because they have no signed agreement with either party. A subagent has a fiduciary duty to act in the seller’s best interest until a Buyer Agency Agreement is signed. Most subagents act as listing agent assistants or host open houses.

Transaction Coordinator

Real estate assistants (referred to as coordinators) are responsible for the administrative tasks involved in a sale and often work for the listing agent. Coordinators are responsible for many administrative tasks and may be responsible for preparing and sending out marketing materials, scheduling appointments, editing contracts, coordinating inspections, and coordinating the closing process.

Dual Agent (Dual Brokerage)

Dual Agents are brokers who, within the same contract, represent both the seller and the buyer (meaning the entire transaction consummates under the same brokerage). This representation requires that all parties agree to the arrangement utilizing a Dual Agency Agreement. A dual agency provides services as both a listing agent and an agent working on the buyer’s behalf; this agent must remain impartial and unbiased to provide equal service to different parties’ best interests.

Non-Real Estate Agent (Non-Agent)

A non-agent does not have the formal legal authority to represent either party, meaning they won’t be able to negotiate or draw up contracts for you; non-agents are not selling agents. Be sure to obtain legal counsel if you’re working with a non-agent or are selling your home without a listing or selling agent.

Agent Representation Conclusion

In conclusion, representative agent terms refer to distinct agent agreements signed before a property’s sale. Agent relationships result in invaluable insight into local market conditions, pricing trends, and buyer motivation to ensure the best possible outcome for their clients. Knowing the different types of agents and their roles is imperative to make sound decisions regarding any real estate transaction.

Are you selling your home or looking to buy and need to find the right agent? Contact us today to be matched with a skilled listing agent or buyer’s agent!