What Is In a Listing Agreement?

When you decide it’s time to put your house on the market, you also need to decide if you want to try your hand at selling it yourself or if you want to work with a real estate professional. The benefits of hiring a Realtor® are significant. The right agent can help sell your property faster and often for more money.

There are several types of contracts or listing agreements for selling agents. Each specifies the services the Realtor® will provide, the length of time the contract will be in place, and compensation. Here’s a closer look at what you can expect to see on a listing agreement, regardless of its type.

1. Pertinent Information – This includes the name of the Realtor®, their agency, your name and property address.

2. Listing Price – You and your Realtor® should have had a heart-to-heart conversation about where to set the asking price. That number, determined using sale prices for comparable homes in your area and the expertise of your agent, will be included in the listing agreement.

3. Terms – If you intend to include certain items, such as an outdoor shed or washer / dryer in the sale of the home, these will be listed here. In addition, any exclusions would also be mentioned.

4. Commission – Most real estate professionals earn a percentage of the sale price of the home. This percentage rate varies and is also negotiable. Whatever amount is agreed upon will be listed in the contract.

5. Duties – The listing contract will outline what responsibilities the agent will perform. While this section will vary depending on the type of contract signed, some typical functions would be marketing, negotiations, contract review and managing the sale of the property from start to finish. It is also important to note, that a listing contract states that the Realtor® is your representative and is bound by the contract to work for your best interest.

If you are interested in knowing the marekt activity in your area or want further discussion, please contact me at: info@usethisrealtor.com or call me at: 408/226-2659.