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Listing Agreements

“listing agreement” is a contract between a real estate agent (the listing agent) and a seller that says that the agent has the right to list (advertise and handle the sale of) your house. It’s important to understand the terms of the agreement, because you’ll be bound by them. And while a listing agreement is good for the agent, because it obligates you to work with the agent for at least a minimum amount of time, 6- 12 months, it also protects you, the seller, by explaining the agent’s responsibilities and what you can do if he or she doesn’t meet them.

Types of Listing Agreements

Open Listing: This type of listing agreement allows a seller to utilize more than one Realtor to sell the property. Whichever agent provides the final buyer gets a commission on the sale.

Exclusive Agency: This listing agreement allows the seller to seek out buyers for the property at the same time as the real estate agency is working to find buyers. If the eventual buyer is found by the seller, the seller pays no commission only consulting, adverting, and buyer contract fees . If the buyer is found by the Realtor, a commission is owed to that real estate agent.

Exclusive Right of Sale: This entitles the real estate agent to a commission no matter who finds the buyer for the property.

Commission

The commission amount you’ll pay your agent. This will usually be 4% to 8% of the proceeds of the sale. Which is negotiable between the agent and you.

Listing Period

Your listing agreement will last for a set amount of time, such as three or six months. From your perspective, a shorter listing agreement is better. If you don’t like the agent’s services, you can walk away and choose a different agent. (And if you're happy, renewing should be easy.) Of course, from Our company’s perspective, a longer listing agreement is preferable, because we are going to do a lot of work to get the house ready to sell, and won’t want to risk losing a commission just as the property is starting to garner some real interest.

Agent’s Duties

Duties. The agreement lay out the activities the agent is authorized to conduct on your behalf. Read through the list carefully, making sure you understand everything. If there are specific duties you want to require of the agent—for example, listing the property on the MLS, posting a yard sign, or creating a listing sheet, etc……..