A listing contract (or listing agreement) is a contract between a real estate broker and an owner of real property granting the broker the authority to act as the owner's agent in the sale of the property.
[2][clarification needed] Upon listing the property, the real estate agency tries to obtain a buyer for the property and, in consideration of successfully finding a satisfactory buyer, the broker anticipates receiving a commission (fee) for the services the brokerage provided.
Although the terms of the contract could vary, usually the payment of a commission (or fee) to the brokerage is contingent upon: If the seller refuses to sell the real estate when one of the above two conditions applies, it is typically considered that the real estate agent has done their job of finding a satisfactory buyer and the seller must still pay the commission, although the details are determined by the listing contract.
The average days to sale in your market, advertising, labor costs, length of term, and competition may influence the rate acceptable by the listing real estate broker before entering a listing agreement.
To make it worthwhile, they want a certain minimum listing time period to have a good chance of selling the property.