[schema type="organization" orgtype="LocalBusiness" url="http://4salebydonna.com" name="Real Estate Agent Donna Baker" description="Real Estate Agent showing homes for sale and available real estate in Monrovia, Pasadena, Arcadia the San Gabriel Valley in Southern California." city="Monrovia" state="Ca" postalcode="91016" email="donna@4salebydonna.com " phone="(626) 408-7766 "]

Understanding Your Listing Agreement

You’re selling your home, and you’re taking no prisoners. Let’s face it, you have two goals: selling for as high a price as possible and selling as soon as possible. That’s why you’re hiring a top broker to deliver the goods for you. But think about your agreement before you sign on the dotted line.

“Most homeowners realize the importance of finding the right agent,” says Richard Roll, president of American Homeowners Association (AHA), “but few fully understand the listing agreement they sign with that broker.”

Laws and real estate practices vary from place to place, but most homeowners enter into an exclusive right-to-sell agreement with their broker. You give the broker the sole right to sell the property, to list your home, do all of the marketing, and do their best to get you the highest possible price.

If another broker was involved in bringing a buyer to the table, your broker will share the commission unless the other broker is a buyer’s broker paid by a flat fee or hourly rate. No matter what, your broker gets paid. Even if you find a buyer on your own without your broker’s help, your broker still gets a commission.

Think that’s not fair? Want to save big bucks on those commissions in your listing agreement? Not so fast.

As always, you get what you pay for. Why should your own broker work hard and spend hundreds of dollars marketing your home to potential buyers if the listing agreement precludes them from sharing in the commission?

Of course, there’s no reason to rule out any option when negotiating an agreement, as long as you and your broker are happy with the arrangement. Just be sure you know the pros and cons.



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