Those who are looking to sell often engage a real estate agent to list their property to help protect their interests. Buyers also tend to rely on the listing agent as the person who can help with the facilitation of a successful purchase. The listing agent needs to be compensated for the work performed. This may raise the matter of which party to the transaction should pay for the services.

A listing agent performs an important function in connection with working with Multiple Listing Service databases. These databases can be an excellent resource for those who want to sell or find homes. Since MLS sites can contain dozens of properties, with many of them similar, it can be tough for the home you want to sell, or the one you want to buy, to get noticed. That is the reason why it is good to bring in a professional who can get the interest of the buyers. A listing agent is the one who works to meet this goal, on behalf of the seller. As such, the listing agent is the person who is, first and foremost, protecting the interests of the seller.

But who pays the listing agent? It is usually the seller that pays the fees of the listing agent. In most cases the listing agent and the seller's Realtor are the same person, or at least working for the same real estate office. Even when that is not the case, though, the listing agent's fees are part of the seller's agent's commission. The reasons that this is the case are fairly straightforward. It is the listing agent who seeks to attract the right buyer for the home. This is the reason that it is customary and normal for the seller to cover the cost of the listing agent's fee.

Now, there are some that might require a little bit of explanation as to exactly how the seller actually makes the payment to the listing agent. Does the seller, the seller's agent, or the employing real estate company actually pay the money to the agent? When a seller has engaged the services of a seller's agent, that agent will pay out a percentage of the commission to the listing agent. You could say that it is the seller's agent or company who actually writes the check, but the seller is the one who makes the payment since that is the party who funds the total commission through selling the home.

When the seller does not hire a professional real estate agent, the homeowner may hire a listing agent and pay for the listing service directly. This could come in the form of a flat fee or it is possible that a commission would be agreed upon, to be provided at the time of the sale. In either case, the listing agent is paid from the funds accruing to the seller, and it is therefore the seller is the party who pays.

Content provided by Automated Homefinder, the Longmont Colorado home professionals