What Exactly is a Listing Agreement?

A listing agreement is a contract by which the property owner authorizes their chosen real estate broker to find the right buyer for the property on the best terms possible for the owner. For performing this service, the home owner will pay a commission based on a percentage of the sale of the home.

When you want to sell your home, working with a real estate agent is one of the most common ways to get it done quickly and at the best price. Agents have a wide network of other professionals and potential home buyers who are currently in the market for a home. Agents can answer questions, negotiate contracts, and usually get the home sold faster than a home owner trying to do it on their own. The listing agreement ensures that the home owner will work exclusively with them, allowing the agent to put effort into marketing the home with the assurance that they will get paid for their work.

How the Listing Agreement Works?

A listing agreement is a contract that will allow the broker to represent their seller and their property to potential buyers. The listing agreement is essentially type of employment contract. Not as in boss and employee, but the seller is “hiring” the real estate agent to help represent them in selling the home; the agent will be paid only if and when the home is sold.

Because most real estate transactions are going to have similar considerations; so most listing agreements will require you to fill out the same information. This starts with a description of the property, including a list of any appliances and personal property that will be left to the buyer when the sale is completed. In some cases, the seller will specifically list out the personal property they plan to take to avoid confusion.

In addition to a description of the property, the listing agreement will also specify the duties of the broker, the duties of the seller, the commission rate of the real estate agent, the listing price, terms of mediation if something goes wrong, and an automatic termination date where the seller can choose another agent to represent them if the home is not sold.

The Benefits of a Listing Agreement

Selling your home can be a huge undertaking. For most of us, it is the most valuable asset we own; so it’s important to get it right. There is a lot of work that goes into selling a home; getting it prepared for market, setting the right price to get buyers in the door, and handling all of the negotiations and contracts. Most buyers and sellers will find that working with a real estate agent will help take the pressure off because it gives them a professional who handles the overwhelming details and guides them through the entire process.

A listing agreement helps both parties know the terms of their working relationship from the beginning. There is no question about who is responsible for what, how much the real estate agent will charge for their services, or anything else during the sale. You will get the expertise of someone who knows the market to give you the best price on your home and can handle any snags that arise.

Before you look into to selling your home, you need to take a look at some of the best real estate agencies in the area to find one who will work with you to find the right buyer. The real estate agent will make sure that you don’t settle for a bad deal when it comes to selling your home. When you find the right real estate agency, one with experience and expertise, a listing agreement is just the first step that is involved with getting your home sold.