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understanding your listing agreement
You're selling your home, and you're taking no prisoners. Let's face it, you have two goals: selling for as high a price as possible and selling as soon as possible. That's why you're hiring a top broker to deliver the goods for you. But think about your agreement before you sign on the dotted line.
"Most homeowners realize the importance of finding the right agent," says Richard Roll, president of American Homeowners Association (AHA), "but few fully understand the listing agreement they sign with that broker."
Laws and real estate practices vary from place to place, but most homeowners enter into an exclusive right-to-sell agreement with their broker. You give the broker the sole right to sell the property, to list your home, do all of the marketing, and do their best to get you the highest possible price.
If another broker was involved in bringing a buyer to the table, your broker will share the commission unless the other broker is a buyer's broker paid by a flat fee or hourly rate. No matter what, your broker gets paid. Even if you find a buyer on your own without your broker's help, your broker still gets a commission.
Think that's not fair? Want to save big bucks on those commissions in your listing agreement? Not so fast.
As always, you get what you pay for. Why should your own broker work hard and spend hundreds of dollars marketing your home to potential buyers if the listing agreement precludes them from sharing in the commission?
Of course, there's no reason to rule out any option when negotiating an agreement, as long as you and your broker are happy with the arrangement. Just be sure you know the pros and cons.
Browse the Article Library
- Donna has put together a collection of articles designed with her clients in mind. Here you will find information on everything you might need before, during and after the home buying or selling process.
- Some of the more popular titles include information on doing a 1031 exchange to save on taxes, ways to fix up your home that will protect your investment, and the Top 10 Mistakes that Sellers Make. Have fun browsing!
- Should you have an idea for an article, or would like to recommend an article for inclusion that you have seen elsewhere, please contact Donna.
About Donna Baker
- Director of Heritage Homes, Dickson Podley Realtors
- Serving Monrovia, Duarte, Sierra Madre, Arcadia, Pasadena, and the entire San Gabriel Valley
- Representing Sellers and Buyers of all types of real estate with a specialty in vintage and character homes, as well as residential income properties.
- Watch a video about Donna