When seeking to purchase a residential property, most will engage a licensed Real Estate agent.
An initial crucial decision will be the listing (sale) price.
The agent owes the seller a fiduciary duty to act in the seller’s best interest.
The agent receives a commission as long as the agent successfully finds a prospective buyer that meets the listing price.
Generally, if there is a willing buyer for the listing price, the seller is obligated to pay the commission, irrespective of the seller’s decision to later terminate the agent or the deal, or if the seller hires a new agent.
In this context, one most beware of the possibility that the agent may set the listing price too low, ensuring the commission and an expedited sale.
The agent fears a high listing price without a buyer and no commission.
While it is prudent to set a realistic price, the agent still owes a fiduciary duty to obtain the best possible deal, this usually means the best possible market price.
So don’t be too quick to agree to the agent’s recommended listing price.
