Home Seller's Handbook

Listing contracts vary from place to place. However, most realtors use forms that represent the Industry standard in their area of service. These listing agreements are flexible and can be tailored to each client's needs and desires. Specifically, the listing agreement is a contract between you and I (or your agent) to sell your house. This contract details each parties responsibilities, the amount of commission to be paid and under what circumstances. Here are a few things to consider:

1. Term of the Agreement-A longer agreement is sometimes beneficial because it gives me or your Realtor sufficient time to find a buyer for your home. In a weak market, this is advisable, however, in a strong market when homes are selling quickly, I advise against drafting long agreements. You can always offer to extend the term of the agreement before it expires.

2. Commission- Although commissions are negotiable, most agents have a standard percentage that agents expect to receive. This amount is usually 6 percent of the sales price, but you may find agents accept 5 percent and those who ask for 7 percent. A lower commission will save you money, whereas, a higher commission, may give the agent, a higher incentive to invest in marketing your home. Negotiating the commission is solely your decision. However, I believe that you should work with a Realtor who accepts the standard 6 percent. Those Realtors will provide their best service to you and meet your needs.

3. MLS-A listing agreement authorizes your agent to post your home in the Multiple Listing Service (MLS). The MLS is a powerful tool and it helps me, or your Realtor, market your home to the largest group of potential buyers.

4. Lockbox-A lockbox is a tiny key-holding safe that can be inconspicuously placed on the front of your house. Any agent who has the means of accessing the lockbox, using a key or a combination, can retrieve the keys to your home, and show you home to prospective buyers. Remember that the more potential buyers you can get to see your home, the higher chances you have of selling your home for a favorable price.

After you reviewed all the details in the listing agreement and have signed it, you are ready to work on understanding the relevant real estate disclosures.