To sell your house through a real estate agency, which is the recommended method to use, you will need to select an agent to represent you, and you will need to sign a listing agreement. Before you sign this agreement, it is imperative for you to read through it carefully to make sure that it is complete, accurate, and fair. Here are several key parts of the agreement to look for and review before you sign it.
The amount of commission you will pay
One big factor to carefully look for in the listing agreement is the rate of commission you are agreeing to pay. You should make sure the percentage stated on the agreement is what you discussed and agreed upon with the agent you are hiring. The typical rate is around 6%, but you may have agreed to a percentage that is higher or lower than this. The important part to remember is that you will pay whatever percentage is listed when you sell your house, so you should make sure it is accurate.
The obligation to stick with the agent listed on the agreement
Secondly, the listing agreement you sign will clearly state that you are using the agent's services that created and signed this agreement. When you sign the contract, you cannot just switch to a different agent whenever you feel like it. You are obligated to continue using this agent until the contract ends or until you reach an agreement with the agent to end the services.
The time frame of the contract
The time frame of the contract will also be on the listing agreement, and this may be anywhere from a month to a year. You can negotiate with your agent about this issue, but you should always make sure the listing agreement reflects the time frame you agreed upon.
A protection clause for the listing agent
The other important part of a listing agreement is a protection clause, and this clause is designed to protect the agent who you choose as your listing agent. This clause simply gives your agent the right to collect a commission for the sale if you sell the house to someone the agent showed the house to after the contract ends.
If you want to sell your house, talk to a real estate agent for help. If you are ready to buy a house, you should also talk to an agent for help.
For more information about homes for sale in your area, contact a realtor.
Share4 September 2019
After I decided to buy a new home, I realized that I probably needed to prioritize the things on my wish list. Since I am not wealthy, I realized that I probably couldn't get everything that I wanted out of a single home--at least, not this time around. Fortunately, I worked with an incredible real estate agent who helped me to figure out which type of property would pay off in the end. Finding a home took a lot of time, but I am really pleased that I found the right one. This blog is all about learning to prioritize your home hunting wish list so that you can have the home and financial situation of your dreams.
