Completing a Listing AgreementWhat is a Listing Agreement? It is a contract between you and the brokerage company that the agent represents.It is a framework for subsequent forms and negotiations.
It is a contract between you and the brokerage company that the agent represents.
It is a framework for subsequent forms and negotiations.
It’s important the agreement accurately reflects your property and clearly spells out the rights and obligations of all parties and what is included and what is not included in the deal.
Both you and the listing agent sign the listing agreement and each receives a copy.
The agreement binds both parties to its terms and conditions.
Whether or not you wish your lawyer to review the agreement, you should in any case let him or her know that you’re selling your home.
Generally, in the agreement:
The agreement also:
Here you decide what you are taking with you and what you are leaving with the house.
Generally, unless stated otherwise, fixtures remain with the property, while chattels
-- things which are movable -- aren’t included in the sale. If necessary, what stays
and what goes are listed under "inclusions" or "exclusions."
And finally, the agreement gives the financial details:
Open Listing: The authority to sell the property is given to one or more REALTORS. You also have the right to sell the house yourself, without having to pay a fee for service, and without dealing with the appointed REALTOR(S).
Exclusive Listing: You appoint one firm to act as your agent in the sale of your house. This firm usually has the sole, irrevocable and exclusive right to sell your house for a given period of time.
MLS® Listing: This is a type of exclusive listing, allowing the REALTOR to work with other REALTORS through your local board’s MLS® system and give your property maximum exposure. This type of cooperative effort may result in the listing agent sharing the commission with the selling agent.
The MLS® system is a cooperative listing service operated by your local real estate board. Your property --and other properties-- are listed on it.
Complete details of your home are sent to all the REALTORS in your area, usually within 48 hours, via modern technology.
Your property gains more exposure, because it reaches the majority of the real estate professionals in your community.
Through MLS.ca, the national MLS® Internet website, participating local real estate boards can advertise their listings to potential buyers across the country and around the world.
Although you may have an idea of how much your house is worth, it’s important to have your home valued by a professional on its own merits. Be careful not to price yourself too high or too low. If it’s too high, there’s no sale; too low and you lose on your investment.
There are two types:
You and your listing agent will pick the time and date for an open house. In order to give the agent access to your home, you may wish to keep a key at his or her office, or in a lockbox. It’s a good idea to:
But you may wish to stay behind. If you do stay, be sure to:
Needless to say, clean counts with open houses. A general rule is that clean, uncluttered and well-lit spaces look larger and more attractive. People will naturally want to buy a house that is clean and well cared for.
Your agent also has other tools at his or her disposal:
The "For Sale" sign on your front lawn. This is how most buyers find homes. Your lawn sign is a "silent Broker," constantly telling everyone that your home is for sale.
Advertising your home in the real estate section of your local newspaper or in your local real estate board publication. Even though your home may not be shown in every issue, you can count on your agent to always suggest your property to buyers who are looking for a home like yours.
Sometimes a home doesn’t sell right away. Avoid the urge to pull your home off the market... be persistent! Generally, there are three reasons why a home may not sell as fast as others:
Naturally, you can’t change your home’s location, but you can fix the condition of your home and you can, of course, adjust your price. Throughout the listing process, you need to be constantly comparing your asking price against those of similar properties in your area. It may be time to adjust the price of your home.
Review your selling strategy regularly with your listing agent:
Is your house being shown regularly?
Are you receiving the feedback from prospective buyers?
Are you in touch with the marketplace?
Is your property competing well? If not, what else can you do?
The offer outlines:
As an act of good faith, the buyer will make a deposit with the offer. A good deposit will often show the buyer’s sincerity.
Along with this, the buyer may:
You don’t have to accept the offer. You may wish to make a counter offer that comes partway to meeting the offer’s conditions. The counter offer is one more step along the way to negotiating the final terms and conditions of the sale.
The offer, once signed by everyone, is a binding contract. Make sure you understand and agree to all of the terms in the document. You may want to have it reviewed by your lawyer before signing.
If necessary, and if the buyer makes it a condition of sale, you may be asked to:
The buyer may also make the purchase conditional on an inspection by a qualified engineer. You may be asked by the buyer to cover this cost.
On or before closing day, this is what happens:
Some lenders will make it possible for your mortgage to be portable, so you can take your mortgage with you when you move to your new home.
Finally, two things to remember:
Here, your responsibilities under the listing agreement end. You’ll have paid your listing agent the agreed-upon compensation. This can be done by your lawyer who can arrange the payment from the proceeds of the sale.
Source: The Canadian Real Estate Association