The Seller Listing Agreement: Whats It All About?
Realtors and sellers usually work together under the terms of a listing agreement. The listing agreement is a legally binding contract that sets out the terms and conditions of the seller and realtors role in selling a house.
Because the listing agreement is a legally binding contract you may wish to seek legal advice if you don't understand everything that is written within it.
A listing agreement varies from place to place, however the majority of realtors use a set pattern, with their own variations. The listing agreement is totally negotiable and you should discuss the terms with your realtor.
What To Consider
There are many things to consider when negotiating a listing agreement. One important thing to consider is the term of the agreement; the time span of the contract. Length of a contract can vary depending on circumstances. A long term can favor an agent in a depressed market, giving them time to find a buyer, but in a good market it may not be so wise.
Commission is also an important consideration to look into when negotiating the listing agreement. The typical commission is 5-7% of sale price. Although a low percentage will save you money, a higher percentage may motivate a realtor more.
The MLS (Multiple Listing Service) should also be considered. The listing agreement entitles you to have your house listed on the MLS, giving the realtor a wider scope to find a buyer. You should remember that the MLS is not offered to the public.
Also you should discuss with your realtor if you want a lock box for your house. This box is one that contains a key to your home and is placed near your home. Only other realtors will have access to it, to show people around your house.
