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2016-01-25 16:37:13
Understanding a Listing Agreement

Understanding the contract between you and a real estate company like EATON Real Estate is extremely important.  After you choose a REALTOR®, you will most likely sign a Listing Agreement–a contract in which you agree to allow a real estate brokerage to sell your home during a given period and pay the Broker a fee when your home sells. Most agents are independent contractors who work for a company operated by a licensed real estate broker.

The amount of compensation you pay a broker is negotiable, but the REALTOR® will generally follow the company’s policy regarding compensation. The amount of the fee will be spelled out in the listing agreement. Make sure you understand how the fee will be paid and to whom before signing.

Most real estate agents will request an Exclusive Right-to-Sell listing. This means that you will owe the broker a commission regardless of who finds a buyer during the listing period. In other words, if you decide to sell the house to your cousin, your broker still gets a commission. In an exclusive listing, the broker is usually motivated to work harder to sell your home.

It’s possible and even likely that a REALTOR® from another company will find a buyer for your home. In that case, your broker is the listing broker, and the second agent is the cooperating or selling broker. Typically, the listing broker will agree to pay the cooperating broker a fee from the amount you pay the listing broker. Your listing broker cooperates with other brokers who procure buyers interested in your property and offers to compensate the other brokers for procuring a buyer. Cooperating and compensating other brokers is discussed in the listing agreement you sign with the listing broker.

The listing agreement will specify how long you agree to list your house with a company. You want a period that’s long enough to motivate your REALTOR® to advertise your home and respond to buyers, yet short enough to allow you to change to a different company if you become unhappy with the service.

Remember that the listing agreement is a contract. You should get a copy for your records. Your agent is bound to the terms just as you are. You can expect the REALTOR® to keep appropriate information confidential and effectively market your property.  Call me, Jimmy Eaton at 801-404-0900 and I'd be happy to explain in person the listing agreement thoroughly.

Blog Archive
2016-02-25 09:21:56
Buyers NEED a Connection

2016-01-25 16:45:37
When Your Home is Under Contract to Close

2016-01-25 16:43:34
Receiving an Offer on Your Home

2016-01-25 16:41:14
How to Show Your Home for Sale

2016-01-25 16:37:13
Understanding a Listing Agreement

2016-01-25 16:33:46
Setting the Price of Your Home

2016-01-25 16:30:28
Preparing Your Home to Sell

2016-01-22 10:24:57
The Science of Selling

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