All services for traditional listings are paid for by the seller in the form of a commission.Without meticulous planning, sales can be subject to loss of profit, which is why Red Suit conducts evaluations with accuracy. We thoroughly take into account the details that may seem niche or minute in order to find a property’s full value. The traditional real estate model started in the late 1800’s and has evolved and changed overtime. However, the premise consists of a sales commission that is always negotiable. However, for illustration purpose we will show the following example:
Sellers Home is Listed with an Exclusive Agent for a 6% commission. Seller will list the home for $100,000. The exclusive agent will create a listing in the multiple listing service. This is a co-op listing service. Any agent that shows the home, without an exclusive buyer agency agreement, is in essence working on behalf of the seller. They have a fiduciary responsibility to the seller. If they happen to have an exclusive buyer agency agreement and bring a buyer, they have a fiduciary responsibility to the buyer. The agent that shows the home now has an exclusive buyer agreement.
The buyer visits the property and makes an offer for purchase. The offer is $100,000 which is the asking price. The seller accepts the offer and the buyer proceeds to closing at a determined time in the contract. So, the proceeds of the sale are as follows:
$100,000 Sale Price
The Agency may be independent or a franchise. They may have a brick-and-mortar location or online only. They may represent both buyers and sellers as a dual agency. The Agent is a contractor for the agency. The following is a list of duties performed to earn their commissions: