What Does A Listing Agent Do For The Commission?
The short answer
A listing agent prices the home, plans the prep, markets it, runs the showings, compares and negotiates the offers, and manages escrow to closing. Much of that work happens where sellers never see it. In California, commission isn't set by law. It's agreed in the listing agreement, so ask exactly what's included before you sign.
Commission is the biggest cost most sellers pay when they sell, so it’s fair to ask what it pays for. From the outside, it can look like an agent puts the house on the MLS, holds an open house and waits. Most of the work happens where you don’t see it.
Here’s what the work looks like across a sale, in the order it happens. I’ve grouped it by the five steps of The Show-Ready-Seller® System, the process I follow on every listing.
How Is A Listing Agent’s Commission Set?
In California, commission isn’t set by law. Every listing agreement for a home of up to four units has to say that commissions are not fixed by law, that each broker sets their own, and that they can be negotiated between the seller and the broker (California Business and Professions Code section 10147.5). Whatever you agree to goes in writing in the listing agreement, and it’s usually paid through escrow at closing.
Before you sign, ask what’s included. Two agents can charge different fees and do different amounts of work.
What Does The Agent Do Before The House Is Listed?
Discovery. Before anything else, I look at your home in person and pull the sales that matter: recent sales nearby, homes in escrow, the competition and the homes that didn’t sell. You get a realistic range for what your home could sell for, as-is, with a few light touches, and fully updated. That’s the EPIC® Report, and it’s how we decide what’s worth doing. I wrote about how a list price gets set.
Preparation. A fix and skip list with the reasons, so your money goes where buyers notice it. The S-R-S® Concierge coordinates the timing of the work, cleaning and staging. When you want help with the work, I introduce you to providers I’ve worked with, and you hire and pay them directly. More in what not to fix when selling a house. The disclosures and paperwork get prepared now too, before the home is on the market. The answers are yours, and we go through them together.
What Does The Agent Do While The House Is On The Market?
Marketing. Professional photography, video, a 3D tour, a floor plan and drone shots, so the listing wins the click before a buyer ever walks in. The listing goes into the MLS with every field filled in. Other agents hear about it directly. Open houses are planned and staffed.
Then the part you don’t see:
- Every showing request comes to me, and every showing gets confirmed with you first.
- Feedback from the agents who showed it, gathered and passed on to you.
- A weekly update on how buyers are responding.
- A review two weeks in of the showings, the feedback and any offers, so we decide together whether anything should change.
What Does The Agent Do When Offers Come In?
Offer Negotiation. I call you when each offer comes in, then call each buyer’s agent and lender to learn what’s behind it. You get every offer side by side the same day: price, loan, contingencies, timing and your estimated net for each, with my recommendation. Then come the counters, and sometimes a backup offer in case the first deal falls through. I wrote about what to compare besides price and how to respond to a low offer.
What Does The Agent Do During Escrow?
Escrow. Every deadline tracked on a checklist with my transaction coordinator: the inspection, any repair requests, the appraisal, the loan and every contingency. You get an update every Monday on where things stand. Before you sign, we check your estimated closing statement against what you expected to walk away with. I’m with you at the signing, and I call you when the sale records. The full timeline is in how long escrow takes in California.
How Do I Know If It’s Worth It?
Look at what changes because of the work: the price buyers pay, how many buyers compete, and whether the deal makes it to closing. In my opinion, the most expensive way to sell a house is to list it and hope. Saving a little on the fee doesn’t help if the sale price comes in lower.
My results: $50M+ sold since 2015 and a 108% list-to-sale price ratio. Past results don’t guarantee future results, and every sale is different. I’d rather you hire whoever has the clearest plan for your house, and ask every agent the same questions before hiring them.
See Every Step Before You Decide
Request the free How To Sell Your Home Guide to see all five steps laid out in order, or book a call and ask me what I’d do with your house.
Frequently Asked Questions
Is the real estate commission set by law in California?
No. California law requires listing agreements to state that commissions are not fixed by law, that each broker sets their own, and that they can be negotiated between the seller and the broker.
When is the commission paid?
It's usually paid through escrow at closing, out of the sale proceeds, according to the listing agreement. Your estimated closing statement shows it before you sign.
Is a discount agent a better deal?
It depends on what's included. Compare the services, the plan and the results, not only the fee. Saving a little on the fee doesn't help if the sale price comes in lower or the deal falls apart in escrow.
Free Guide
How To Sell Your Home Guide
This guide comes from what I've learned selling homes in Burbank and the San Fernando Valley since 2015, not from general advice written for every market in the country. It shows you the steps I'd take on your home, so you know what to do before you spend money or sign anything.
Request My Free Guide