No no. A buyer replacement contract is a contract between a buyer and a broker, not a seller. As such, your buyers would always be represented by your former broker. However, your buyers may apply to be exempted from buyer replacement agreements with your former broker. While the seller is not limited to a price determined by a competitive market analysis or even a formal valuation, the broker will have little interest in selling a property with a much higher price. A price that is too high will be difficult or impossible to sell before the listing contract expires, and brokers, like most people, do not want to work for nothing. A potential buyer sent me an email to view a property I had listed after seeing my offer on my site. Is there a form I should give him to reveal that I represent the seller? 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 for setting a catalogue price: a competitive market analysis and a formal evaluation. Competitive market analysis determines the price range of a property by comparing the property with recently sold properties of the same design, the same situation and other factors. In a formal valuation, a professional real estate expert determines the market value of the property, that is, the likely price a buyer would pay in the case of an arm-length transaction. A formal valuation is often required when the property is unique, making it difficult to find comparable properties that have recently been sold. A listing agreement is a document in which an owner enters into contracts with a real estate agent to find a buyer for the owner`s property.
The owner executes the listing agreement to give a real estate agent the power to act as a broker when selling the owner`s property. However, the owner usually has to pay a commission to the real estate agent. In an exclusive agency list, only 1 broker has the right to represent the seller, but the seller has the right to sell his property without the broker and without paying commission. Some contracts have automatic renewal clauses that automatically extend the list period by a certain amount, for example. B 30 days, in the absence of sale. Automatic extension clauses create a contract with no actual expiry date and are not in the seller`s interest because the broker is not motivated to sell the property within a reasonable time. As a result, in many countries, extension clauses are illegal and most types of standardized real estate do not have the clauses. I understand that it is important to have a written representation agreement when a buyer is represented and that it is necessary for a broker to have signed a written agreement of the person who agrees to pay a commission to enforce that right to a client.
But why should I be concerned about this expense, since in my market, the selling agent almost always pays the broker`s expenses cooperating in connection with the MLS housing offers? Most states require that list agreements be written down and generally based on standardized forms. A net list indicates that the seller receives a predetermined amount of money from the sale of the property, the rest goes to the real estate agent. The real estate agent can offer the property for any amount above the net amount go to the seller. However, because the broker often suggests the sale price to the seller, this can create a conflict of interest, since the broker is motivated to get the seller to accept a lower selling price, so that his own profit can be maximized. With an open offer, a seller employs any number of brokers as agents.