subject: Listing Homes For Sale Listing Agreements And Other Considerations [print this page] One of the crucial steps in selling a home is listing the property. This is the part where homeowners get their homes for sale out there for buyers to see. There are steps within this part and its equally important to consider each. Read on to know what constitutes the entire listing process.
Finding the agent
First of all, you have to find the listing agent who will, well, list the home for sale. There are several ways to find such an agent. One is to search for local agencies. You can also surf the web for agent names in your area. But like choosing a buyers agent, be sure to interview the agent thoroughly.
Listing contract
Once you find the listing agent for your home for sale, the next step is to sign a legal contract with the real estate broker. There are several items that will be stated in the listing agreement but generally, it will outline the commitment of your agent to find a willing buyer who will satisfy the price and terms youve set. In addition, it will include your promise to pay the broker a specific percentage of the sale as commission.
The listing contract, like the purchase agreement, is typically negotiable. If you're worried about the amount you need to pay for the broker, you can easily negotiate the right price. But, in general, listing agents are paid anywhere between four to seven percent of the total home value. You also have the option to pay a specific fee for a successful sale or even pay your broker on an hourly basis.
Types of listing
Before signing the contract, you must first decide on the type of listing you want, which includes the following:
1. Exclusive Agency Listing
This type of listing authorizes only one broker to find a buyer for the property. However, if instead of your broker, you find the buyer, he or she doesnt get paid.
2. Exclusive Right-to-Sell Listing
This type of listing basically makes the broker your representation during the home sale. Regardless of who found the buyer, the broker must be paid.
3. Open listing
This type of listing is nonexclusive and allows you to pay the first broker who finds the right buyer.
Exclusive right-to-sell listing is probably the most popular homes for sale listing because of the benefits it provides in the marketing of the property. If you choose this type of listing, make sure the contract will include two important clauses: definite termination date and broker protection clause.
