Understand the Terms of Your Listing Agreement

The listing agreement is an essential part of selling your house with a real estate agent. Understanding the terms of your listing agreement is critical if you want to avoid any problems during the process. Here are a few things to consider about understanding your listing agreement.

Basic Information

At the beginning of your listing agreement, you should notice some basic information. You will typically see your name, the name of your real estate agent, the date that you entered into the contract and the address of the property that you are selling. This is very basic information, but it needs to be correct so that you can enter into a legal contract.

Type of Listing Agreement

When you start to read your listing agreement, you want to make sure that you understand what type of agreement you have. There are several different types of listings that you could potentially enter into with your real estate agent. For example, you could choose an exclusive right to sell listing. This means that only your real estate agent can sell your property. She may work in conjunction with a buyer's agent, but she is going to be representing you in this transaction. You cannot sell the property on your own if you happen to find a buyer through other means.

Another type of listing that you might enter into is an exclusive listing. With this type of listing, you are still going to be represented by a real estate agent, but you could potentially sell the property on your own if you found a buyer.

You could also choose to enter into an open listing. This is a type of listing that means you are not going to have representation in the deal. You are simply going to list your property with a real estate agency and pay a commission to the agent that helps sell your property. You will basically be working with a buyer's agent, and you will not actually have a listing agent in this case.

Purchase Price

One of the most important parts of the listing agreement is the purchase price. You want to make sure that you choose the proper price to list your house for and that it is clearly listed on the listing agreement. You want to avoid any confusion as to how much your house is going to be listed for.

Time Limits

On your listing agreement, you are also going to want to pay special attention to the time limits of the agreement. You want to know how long the contract is going to last and what happens after it expires. Typically, a real estate contract is going to last approximately 90 days. At that point, you will have the option of renewing the contract or letting the listing expire. Once you have reached 90 days and your property has not sold, you will need to reevaluate your situation and decide if you want to keep your house on the market or take it off. 

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