Everything You Need To Know About Listing Contracts
So you've decided to sell your home, and you've decided (wisely) not to For-Sale-By-Owner. Now all that's left is to hire a Colorado Springs real estate agent and sign the listing agreement to get your home on the market, right?
Well, almost. Before you officially sign the listing agreement, you have to decide which type of listing agreement you want to use. While some of the different options may be similar, they each have their own nuances and serve slightly different purposes. Here is a quick look at a few of the different kinds of listing agreements.
Well, almost. Before you officially sign the listing agreement, you have to decide which type of listing agreement you want to use. While some of the different options may be similar, they each have their own nuances and serve slightly different purposes. Here is a quick look at a few of the different kinds of listing agreements.
Open Listings
With an open listing agreement, your broker can can bring potential buyers to come see your home. If one of the buyers the agent brought decides to purchase the home, then the broker will get commission on the sale. The unique aspect of open listings is that you can have different open listing agreements with multiple different brokers. For this reason, however, these agreements typically aren't very popular with real estate agents. The other drawback is that your home will not get very much exposure with an open listing.
Exclusive Agency Listings
With an exclusive agency agreement, the agent represents the seller. It is the REALTOR'S job to list and market the home, as well as to bring potential buyers to view the property. If the broker finds an interested buyer, he will earn commission on the sale. The seller is also free to market his/her home to buyers, however, and if the seller finds an interested buyer, she will not have to pay the agent commission. While exclusive agency listings are more common than open listings, they are still not particularly prevalent.
Exclusive Right-To-Sell Listings
Exclusive right-to-sell listings are the most commonly used type of listing agreements. Under this type of agreement, the broker enjoys the exclusive right to market and sell your home by both representing the owner and by bringing in potential buyers.
Under an exclusive right-to-sell agreement, your broker will make sure your home is added to the MLS system and will actively market your home to both buyers and other real estate agents. While your agent is guaranteed commission on the sale, no commission will be owed unless (and until) your home actually sells. This commission agreement gives your agent the incentive and motivation to ensure that your home sells quickly and for a great price!
Questions? Give me a call to learn more about selling your home in Colorado Springs!
Mike MacGuire
Colorado Springs Real Estate Agent
The MacGuire Team
6760 Corporate Dr
Ste 300
Colorado Springs, CO 80919
719-536-4324 or 719-660-6793
Comments