If you are thinking about listing your home, you agent will have you sign a listing agreement when you are ready to put your home on the market. The listing agreement is a contract between you and the company you list your home with. It will provide you with the details of your listing such as price, dates, commission you agree to pay and outline the obligations of your agent during the listing term. The listing agreement will also authorize the agent to perform certain functions such as put a sign up in your yard, put a lockbox on the house that will provide access to other agents, enter the listing in MLS and allow syndication to other websites.
Here are the parts of the listing agreement you want to make sure you understand.
- Commission-Know what amount you will be expected to pay for an agent to sell your home. This may be a percentage based on the sales price of your property or a flat fee that you pay no matter what your home sales for.
- You also need to understand the term of your listing agreement. This will be the date your listing agreement expires. Your agent will actively market your home until midnight on the expiration date or any extensions thereof. In some cases, there is also a clause that stipulates you will still owe the full commission to your listing agent if a buyer that looked at the home while it was listed buys it during a certain number of days after the expiration of the listing.
- Make sure you understand any limitations you place on the marketing of your home. If you don’t allow your agent to expose your home via every avenue possible, it can limit the number of people that see your home on different sites.
- If you choose to limit the way agents can access your home or require you or your agent to be present for showings, it can greatly limit the number of showings on your home due to trying to coordinate you and your agent’s schedules along with the buyer and their agents.
Like anything when you are trying to sell your house, knowledge is critical. The more you know, the more comfortable you will be with the process allowing you to be less stressed.
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