What Is A Listing Agreement In Real Estate?
When the time comes for you to upgrade to a bigger house or move to a new area, you will need to find a way to sell your house first. The best way to do this is by hiring a real estate agent for help. The agent you hire becomes the listing agent, and you will need to sign a listing agreement with this agent to start the deal. If you have never signed a listing agreement, here are several things you should know about the agreement before you sign it.
It is a legal contract
The first thing to know is that when you sign a listing agreement with an agent, you are signing a legal contract. This contract will state the length of time the agreement is in effect as well as all the other terms of the agreement. The listing agreement gives the agent the right to sell your home and be compensated for it, and it gives you the responsibility of allowing the agent to take people into your home to show it. Before you sign the agreement, make sure you fully understand what you are agreeing to, as it is a legally binding contract.
It should state important factors about the deal
As you look over the listing agreement, you should make sure that the details on it are correct. While you should examine all the details of the agreement, there are several really important things to look it, which include the listing price and the commission rate. If these are not accurate on the agreement, ask the agent to make the necessary changes and then you can sign the agreement once the changes are completed.
There are different types of listing agreements
The other thing to understand is that there are different types of listing agreements. In most real estate deals, the listing agreement is considered an exclusive-right-to-sell agreement. With this type of agreement, you are hiring an agent to sell your home, and he or she will earn a commission on the sale no matter who sells the house.
A second type is called an exclusive-agency listing, and this type means that the agent you hire only earns a commission if he or she sells the house. The other type of listing agreement is called an open listing, and this type offers the most freedom of all. Any agent can show your house and sell it with this type, and the agent that does this is the one who earns the money from the commission.
Selling a house is not an easy task on your own, and this is why most people hire agents for help. If you would like to meet with an agent to learn more about selling your house, contact a real estate firm in your town today.