Real estate agents are rewarded for finding home sellers by becoming the agent of record through an executed sales contract with the seller. The contract names the agent as the recipient of future commissions regardless of who actually sells the home. During the term of the contract, the listing agent receives the commission on the sale.
The property listing becomes the asset of the real estate agent, thus establishing the agent’s own interest in finding a buyer.
The advantages of working with a real estate agent to sell a home are numerous. Here are a few:
• Agents have a vested interest in the sale of the home at the best possible selling price. Commissions are not earned until the agent’s work consummates in a sale.
• Sellers who have limited time and knowledge about the local real estate market can benefit from the agent’s talents without having to become experts themselves.
• Agents can leverage their reputation in the local market with advertising and a list of prospective buyers. As professionals, real estate agents are usually aware of potential buyers long before an individual seller learns of it. Corporate moves and local business changes can give real estate agents a long list of sales leads. This works to the home seller’s advantage.
• Agents handle the negotiations with the buyers so that buyers and sellers do not run the risk of personality clashes. As professionals, real estate agents can depersonalize the sale so that if a potential buyer complains about some aspect of the home’s appearance or condition, it does not offend the seller, thus causing a stalemate or an end to the negotiation, and, perhaps, a lost sale.
• Honesty is essential in the contracting and final execution of the sale, but it begins at the point when the seller signs the contract to engage the services of a real estate agent. It may seem obvious, but the seller needs to know what the prospective buyer will see when he or she tours the home. An honest real estate agent will inform the seller of all potential negative factors, from pet odors to paint colors. Sellers should be prepared to hear this honest evaluation and to make the necessary changes to attract the best buyers.