Listing

Yes, there is a commission involved (in most cases). And Yes, usually the seller is responsible for paying the commission. However, the commission is……..NEGOTIABLE. Most commissions are paid at closing. Also, commissions are always paid to the broker of the company, not your real estate agent.

In most areas…. the most common type of listing agreement is the "Exclusive Right to Sell"

The Exclusive Right to Sell listing contract is a contract between you and the broker of your agent's company. In short, it simply states that you will pay X amount of commission to the broker for your Realtor to represent you in the selling of your home. Sometimes a listing contract will spell out the precise marketing plan that a Realtor will provide to the seller, and normally all costs of marketing the home are incurred by the Realtor, regardless of whether the home sells or not.

I know what you're thinking. If you're like most sellers they want to receive the highest possible price for their home……and you should. A common mistake among sellers is listing their home with a Realtor at a much higher price than recommended and letting the Realtor spend his or her funds to advertise the home. If it doesn't sell, the sellers will list it with another Realtor at a slightly lower price. Again if it doesn't sell…….another Realtor. Why not? The sellers are not out any money, because the Realtor pays for the advertising.

Actually, the sellers are out some money…….usually a lot. Not directly, but indirectly. Each time the sellers re-list their home; the data is entered into the MLS. If a seller changes Realtor's 3 times, that is 3 different MLS files on their home……all with different prices. When the price is right to finally attract a potential buyer, the first question asked by the buyers is "How long has this home been on the market?" By this time, it's been on a long time. The next question buyer's face then "What's wrong with it?" If the home has been on the market for some time, the buyer's psychology is to think "what's wrong with it?" By this time, the sellers have already created a bone of contention with a potential buyer. Buyer's prefer to "fall in love" and focusing upon what could potentially be wrong with home, isn't a strong precluder to falling in love with it.

The end result is that the sellers usually becomes frustrated with the time it takes to sell the home and end up releasing it for much less than it's value…..not to mention the extraordinary amount of time they've just wasted.

Most homes receive the majority of their showing in the first few weeks. If priced right, as soon as the listing hits the MLS……it should attract buyers who are currently looking.

Another thing that you will most likely sign while signing your listing agreement is the Seller's Disclosure Form. By law, the Seller is required to inform any buyer about the home's current condition. This form supplies a series of questions regarding the appliances, electrical system, heating & cooling, water / sewer system, roof, and any potential hazardous conditions. Granted, not every Seller understands every aspect of their home. Fortunately, there is an answer option where you may choose "I don't know" regarding specific questions.

In some cases the Seller's Disclosure Form is accompanied by a Lead Based Paint Disclosure Form. As a Seller, you must reveal to the buyer any information that you have regarding lead based paint in the home. If your home was built after 1978, chances are VERY slim that lead based paint was ever used.

Another thing to consider is any potential "contingencies" that you may associate with the selling of your home. Let's say for example that you have found a great home that you would like to purchase. However, you cannot afford to purchase the home until you sell your current property. In such a case, you would place a contingency on your current property listing stating that any sale is contingent upon your purchase of your newly found dream home.

Finally, your listing contract will also contain a specific date of termination. On average, a listing contract runs 3-6 months, but you can certainly negotiate this with your Realtor. If for some reason you decide to remove your home from the market, normally you can withdrawal the listing without penalty. However, check with your Realtor regarding specifics on this matter.

Also, one other quick note…. ask your Realtor if he or she has any other suggestions about getting your home ready to sell. You've covered most of the work already, but maybe your Realtor has a little insight to making it even more attractive. It's just important to allow your home to be as attractive as possible so that buyers are impressed during… . page 5 of 9