Investor vs Realator - Where Does The Money Go?

[Sean K.]

If a realtor lists a house for 200K, is this amount based on the ARV, or after the mortgage is paid off?

If the realtor sells the house for 180K, and the owner still owed 70K, then there would still be 110K remaining.  Where does the excess money go after everyone (bank, agents, brokers, seller, etc...) has been paid?

I understand how the money works on the investor side, but not the realtor side.