What Is A Listing Agreement And What Information Does It Contain?
If you plan to sell your home through the help of an expert, you will have to choose a real estate agent. The agent's job is to help you find a buyer for your home, and you must create a contract with this agent. The contract is a listing agreement, and most real estate deals use listing agreements. Here is an explanation of what this agreement is and the information it contains.
The Definition of a Listing Agreement
A listing agreement is a contract used by homeowners and real estate agents when homeowners want to sell. A homeowner hires a listing agent to represent them, and the agent creates a listing agreement. The contract states all the guidelines, conditions, and arrangements for the sale and both parties sign it.
The Type of Listing
In most cases, agents and homeowners use a specific type of listing agreement. The agreement is an exclusive right to sell listing. This listing protects the agent by providing compensation to him or her when the house sells, but it allows any agent to show the house and earn a commission on it, too. This arrangement also gives the listing agent all the responsibilities in the sale, including marketing the house and handling the closing tasks.
The Other Details It Includes
A listing agreement contains a lot of other details, too. Here are some of them:
- The description and location — A listing agreement must include the details of the house to ensure that the deal is legal and that it pertains to only that home.
- The asking price — It also contains the amount the homeowner is asking for the home.
- The things included in the sale — If there are any questionable things with the house, the agreement should state which ones the deal includes.
- The time frame — A listing agreement expires after a specific date, and you can find this date in the contract.
- The commission — When you hire an agent for help, you can negotiate on the commission rate. Make sure your agreement shows the accurate rate before you sign it.
The agreement is not a contract until both parties sign it. It would help if you read it over before signing it to ensure that everything is accurate.
Using a real estate agent to help sell your house is a smart move. Real estate agents have access to buyers, and they will help you find one for your property. Call an agent today to get started.
For more tips, reach out to local listing agents.