The beginning of cooperation between the client and our agency comes in the form of the listing agreement. This gives our agent (and our company) the right to act on behalf of the client. This contract contains a list of points including the starting price of the property, terms, and conditions of the extent of agents’ rights, starting and closing date of the contract and so on.
This agreement gives authorization to our agency to work with other institutions and organizations to advertise and manage and maintain the property and to attract new buyers. It can also provide us with the authorization to reveal existing offers to new interested buyers.
How we earn our share from the sale
Whenever we enter into a contract with the purchaser, we decide on the commission fee, an amount of money we will get from the disposal of the property. The exact details of the contract may vary, including the terms and conditions of the said fee. Whenever the client hires us to help them with the sale, we will invest resources in advertising and other areas to attract potential buyers.
Our primary objective is to find a buyer who is willing and ready to pay the price that is listed or even more depending on the negotiation process. This also includes the negotiation that will result in the sale of the said real estate. Our right to collect the fee becomes active when we fulfill our part of the deal, as we mentioned above. If the seller decides to step back from the deal, we will still demand our fee, as we found the buyer who will pay the asked price.
The difference between the listing and the final contract price
The listing price represents the amount of money that the seller wants to gain from the sale. Final contract price reflects the amount of money for which the property will be sold. It’s up to a real estate agent to negotiate with the buyer and reach that price. If that price is lower than the listing price and the seller isn’t satisfied then the agent has to look for other possible buyers.