 Details of a Listing Agreement
The name of the seller and the property address will be inserted
into the listing contract. After this, there are many other important
items that you will have to make decisions about. These include:
Price and Terms of Sale
When setting the terms of sale, the main thing you are concerned
with is the price. You should have a basic idea of what your home
is worth by asking your real estate agent for comparable sales
in your neighborhood. These “comps,” along with input
from your agent, your homes specific features, and your own ideas
should give you a good starting point on the listing price. Use
great care in determining your asking price, making sure not to
set it too high or too low.
In addition to the price, you will disclose what personal property,
if any, goes with the house when you sell it. Personal property
is anything that is not attached to the home, such as
washers, dryers, refrigerators, and so on.
There may be an item that is considered "real property" that
you do not intend to include in the sale. Real property is anything
that is attached to the home. For example, you may have a chandelier
that has been in your family for generations and you take it from
home to home when you move. Since the chandelier is attached to
the house, it is considered "real property" and a reasonable
buyer would normally expect it to go with the house.
Lockbox
A lockbox is a basically a padlock with a cavity inside where
a key to your home can be placed. Only someone with an electronic
key or the combination can get into the lockbox and access the
key. Having a lockbox available at your house makes it easy for
other agents to get access to your house.
Without the lockbox, agents representing buyers would have to set
appointments to meet you or your agent at the house, so they could
gain access and view the home.
The listing contract specifies whether you allow a lockbox or not.
It is locked into place, usually on the front door, and cannot be
removed. Only other agents can access the key that is located within
the lockbox.
Real Estate Commission
Real estate agents typically earn a certain percent of
the sales price as a commission for their services. Like many items in
real estate, this amount is negotiable. When completing the listing
agreement, you and your agent will agree on the amount of the real
estate commission.
Multiple Listing Service
Your listing contract should specify whether or not the house will
be listed with the local MLS (multiple listing service). It is
definitely in your interest to have the house listed. This is because
your sales force is automatically multiplied by however many agents
are members of the local MLS. If your house is not listed, then
you only have one agent working for you instead of many.
Agency Duties of a Listing Agent
The listing contract will specify that your agent is acting as
a "seller’s agent." This means that, in the sale
of your house, they are working for you and only you. However,
there may be times when your listing agent has a client who wants
to buy your home. For that reason, there is a little "flexibility"
in the listing contract. If your agent also represents
the buyer, the listing contract should specify that they provide
an additional disclosure that details their duties as a dual agent.
The contract also provides permission for your listing agent
to act as an agent for others on other transactions. They can
continue
to list other properties, and represent buyers looking at other
homes.
Resolution of Disputes
There may be a time (hopefully not!) when you and your agent have
a disagreement that you cannot resolve by yourselves. The
listing contract specifies what methods will be used to settle
such
disputes. One option is to choose to accept binding arbitration, which
is generally
cheaper than hiring a lawyer and going to court.
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