This form is similar to the non-exclusive form, except for one essential difference: the buyer has agreed to collaborate exclusively with the broker/agent. Leases are employment contracts between sellers of real estate and real estate agents for the professional services of the broker. The listing contract establishes an agency and trust relationship between the seller and the broker, the seller being the principal and the broker being his agent. The broker usually has sellers who work for them in order to provide the services that consist mainly of finding buyers for the property. However, sellers work for the real estate agent and not for the seller. Only the broker represents the seller. There are different types of listing agreements that vary depending on the exclusivity of the agreement. Home buyers usually sign buyers` brokerage contracts with their real estate agents before writing a sales contract. Buyers` brokerage contracts define precisely who represents the buyer. It is also called the representation of buyers. One of the most important details of the property is the list price set by the seller, often based on the broker`s advice.
There are two main methods of setting a list price: a competitive market analysis and a formal evaluation. A competitive market analysis determines the price range of a property by comparing the property to recently sold real estate of the same type, location and other factors. A formal valuation is used by a professional real estate expert to determine the market value of the property, which is the likely price a buyer would pay in the event of a competing transaction. A formal valuation is often required when the property is unique, making it difficult to find comparable properties that have recently been sold. If you have an exclusive agreement with an agent, it means that you are working with him and only with him. You can negotiate the commission rate, but if the seller agrees to pay an additional commission and it is disclosed, the buyer`s agent may receive more. But that doesn`t mean your agent is going to relax in his duties – he always has your best interest in your heart.