When you are ready to sell your home, you’ll need to find the right real estate agent for the job! For tips regarding finding the right real estate agent, be sure to read our earlier blog post here.
Once the right realtor is in place, you’ll need to finalize a property listing agreement. Let’s focus on the three main types of listing agreements that may be offered to you:
This is the most common of the three listing agreements. The real estate broker has the exclusive right to sell our home. The owner cannot sell on their own, or enter into an agreement with any other agent, broker, or otherwise. If the home is sold through any means other than the listing broker, the full commission is still due to the listing broker. With this type of listing, agencies will usually work their hardest.
This type of agreement commits you to work with only one broker who will represent you; however, it also leaves you with the ability to sell your house on your own. This is a very valuable type of listing for sellers that are interested in selling their own home and avoiding the cost of commission, yet willing to pay the commission to an agency that is able to sell their house either more quickly or at a higher price than they themselves can. Although it is not usually their first choice, confident agents and agencies will generally agree to this arrangement and work hard to prove their worth.
This is a non-exclusive agreement, meaning that you are not tied to one particular agent or firm. With an open listing agreement, you may work with more than one agent or firm at the same time and if you sell your house on your own, you do not have to any commission to anyone! Although this is the most advantageous listing type for sellers, it is important to look at this type of agreement from the broker’s perspective. Brokers will be hesitant to invest time and money into marketing your property if they are unsure about the situation. The result may be a limited effort or low budget approach to your marketing plan. It is up to you to determine if you want multiple but lower quality efforts or one high quality full effort.
Other areas of concern before finalizing a listing agreement include:
Know your market! If there is a shortage of inventory, you have the advantage to negotiate a lower commission.
Shorter listing agreement time frames provide the flexibility to change listing agents if you are dissatisfied with their marketing efforts. Even more powerful than short time frames is the right to cancel. If you experience a life change, or are not satisfied with the listing broker, the cancellation clause can immediately be put into effect.
When the time arrives, please contact us for Florida title services or any other real estate related service. Our office is located in Royal Palm Beach, FL and serves the entire South Florida region from West Palm Beach through Miami.
The Law Office of Donna Hearne-Gousse, P.A.