The Real Estate Listing Agreement

What Is A Listing Agreement

When you choose to sell your property, you will most likely list it with a REALTOR®. They will provide you with an agreement to sign giving them an exclusive on the sale of your property for a given period of time. It also states you will pay the REALTOR® a fee when the property is sold. This agreement is a legal contract so be aware of it's language and terms. Keep a copy of this contract in your personal records.

The REALTOR® and you are both bound to the terms of this contract and the REALTOR® is required to keep appropriate information confidential.

What is a REALTOR®?

A REALTOR® is a licensed independent contractor working under a real estate broker. A real estate broker is licensed by the state to sell real estate and collect a fee. The broker is entitled to employ salesmen and other brokers. It's normally the broker's sign that is placed in your yard. The smaller sign on top with a name and seperate phone number is the REALTOR®.

Why sign an exclusive agreement?

This agreement will motivate your REALTOR® to work harder to market and promote your property to qualified buyers. It guarantees the REALTOR® will be paid regardless of how your home is sold. In other words, if you decide to sell your home to your brother or good friend, the REALTOR® still gets paid. This assures the REALTOR® he will be compensated for all his hard work.

What is your advantage?

This contract will spell out which fees are required and how much. It will state the exact length of time the REALTOR® will have the exclusive. This is important because of two reasons. If you become unhappy with the performance and efforts of your REALTOR®, you can void the contract and find another REALTOR®. If market conditions are just difficult, you can extend the agreement if you are satisfied best efforts are being put forth.

It does happen that a REALTOR® from another company will find the buyer for your home. In this event, your broker is the listing broker, and the second REALTOR® is the selling or cooperating broker. Many times your listing broker will agree to divide his fee with the cooperating broker. Cooperating and compensating other brokers will be outlined in the listing agreement you sign with your listing broker. Most brokers work together to find buyers for your property.

Call or email me and we will set up an appointment. I will come to your home and give a complete presentation outlining what my marketing plan for your property will be. I will go over the listing agreement and answer any questions you might have about the entire process of selling your property. All at no obligation to you.

Rick Lockwood, Realtor®
(512) 635-2691  Email