About the Listing Agreement
Here’s What You Need To Know About the Listing Agreement
By Patrick McCarran
Real Estate Broker
Each of the four
types of standard agreements—Exclusive Right to Sell, Open Listing, and
Exclusive Agency—is a legally binding contract that authorizes a broker and her
sales associates to produce a buyer for a home, according to the conditions
specified in the contract.
Depending on the
type of listing agreement, you can expect to see most of these terms detailed
in the document.
·
Terms of the
Agreement
The length of time
the contract will be in effect typically runs anywhere from 30 to 90 days,
depending on the local market. Under Terms of the Agreement, you’ll also find
the price of the home. You should arrive at the home’s market value after
considering the Comparative Market Analysis and other market factors with your agent.
·
Commission
It may come as a
surprise that commissions are not set by the industry and are negotiable. Real
estate professionals expect to earn between 6% and 7% of the sale price, depending
on the market and the services offered. The home is generally offer on the MLS
and the commission is split with the
buyers agent.
·
Multiple Listing
Service (MLS)
This section
authorizes a real estate professional to list your home with the MLS. While you
have the right to opt out of listing with the MLS I do not recommend it. The
MLS can dramatically increase exposure and with it help maximize your home’s
value The MLS is the main portal to the Internet and will increase the chances
of selling your home.
·
Lockbox
Basically a hollowed-out padlock or miniature safe holds a
key to your home. The lockbox allows convenient access for Agents showing the
home. Only an Agent with an electronic key can gain entry. The visit is
recorded and accessible to find out who showed the home and when.
·
Description of the
Property and Its Condition
Here you’ll find a
description of the property and its general condition as well as the condition
of its major systems—mechanical, plumbing and electrical. Along with the
description should be a list of the items that will stay with the home, for
instance, the washer and dryer, and those items you intend to remove such as a special
light fixture.
·
Marketing Plan
While the marketing
plan is not specifically in the agreement it can be added as an addendum. The
marketing strategy should be discussed and structured to cast a wide net and
might include advertising, open houses, the multiple listing service, signage,
fact sheets, color flyers, and so on.
Your
Realtor will complete the listing agreement based on your input, so you may
want to take time before you meet to consider your response to each section of
the contract. The more prepared you are, the less likely you’ll have a
misunderstanding down the road.
Patrick
McCarran is a local Realtor and Broker DRE# 01325072. He can be contacted by
phone or text at (925) 899-5536, pmccarran@yahoo.com or www. CallPatrick.com.
An independently owned and operated office.
In association with Realty One Group Elite DRE# 0193160. Equal Housing Opportunity.
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