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Now that you've made up your mind to sell your house or
property, it's time to find a real estate agency and work out the
details of a listing agreement. A
listing agreement is a contract in which the Seller hires a real estate
firm or agent to find a ready, willing and able buyer for the Seller's
home in exchange for a set fee. This commission fee is not a
standard fee, but varies depending on the type of agreement listing
contract and the individual real estate company.
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Three
types of listing agreements:
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Exclusive Right-to-Sell Agreement. With an
exclusive right-to-sell agreement, the Seller pays the
commission fee regardless of who produces the Buyer. This fee
covers many important services that the Real Estate Sales
professional performs above and beyond finding a qualified
buyer.
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Exclusive Agency Listing. In an
exclusive-agency listing, if the Seller finds a Buyer, he or
she is not obligated to pay the commission fee. If the Real
Estate Sales professional finds a Buyer, then the commission
fee is paid to the real estate company.
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Open Listing. An open listing is one in
which the Seller signs with several real estate firms
and give each authority to sell his home. Typically,
this type of listing agreement is less effective than an
exclusive listing because the Real Estate Sales professional
lacks the incentive to make an all-out effort to sell the
home.
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Some homeowners prefer to sell their homes privately with a "For
Sale by Owner" offer. This system may work for the Seller,
but with various degrees of success. We do not recommend this
method because of the involved legal processes encountered when selling
a house. |
