Have you been thinking about selling your house? Here are some tips on understanding listing agreements.
Depending on your situation, you must decide which option is best for selling your house. Also, it will depend on how much or how little you are able to handle in terms of selling your home. Besides the real estate market, another factor will be the economic climate.
A Listing Agreement Can Have Different Types.
In terms of CalgaryListings agreements, open listings are the most common, while exclusive agency listings and exclusive right-to-sell listings are the most rare. These are the main differences between them.
Open Listing for Selling Your House
Selling your house yourself is possible with an open listing. There is no exclusivity in the agreement. In other words, you can list open listings with more than one real estate agent. Once a buyer offers you an offer that you accept, you pay only the broker.
It is possible to pay only a selling broker’s commission in an open listing, which is about half of the typical fee.
In the case of finding the buyer yourself, you won’t have to pay anyone a commission. There will still be closing costs and possible lawyer fees to pay, but you won’t have to pay an agent.
Exclusive Agency Listing for Selling Your House
It is similar to an open listing to have an exclusive agency listing. You will be represented by a broker, which is the main difference. If you decide to selling your house yourself instead of paying a commission, you still retain the right to do so.
Brokers are free to cooperate with other brokerages, which can result in the second brokerage bringing in a buyer. There is usually a split commission between buyer and seller’s brokers, which means you pay both brokers.
Listing with Exclusive Right to Sell
Typically, exclusive right-to-sell listings are found in real estate. Brokers earn a commission exclusively by representing owners and bringing buyers through another brokerage or directly.
The listing broker and the selling broker both charge you fees as the owner. If the contract doesn’t specify an exception, you will have to pay a commission if you sell the property on your own.
It may be possible to sell the house yourself, however, if the contract allows it. Consider the situation in which your neighbor expresses an interest in purchasing your house. You may then be given a set number of days to negotiate a contract with your neighbor without owing a commission to your broker.
There are Other Factors to Consider as Well
Listing agreements can be negotiated for any length of time. There are a variety of terms available, such as 30, 90, six, or one year. Make sure you know your cancellation rights. There may be no difference in the length of a listing contract if you can cancel at any time.
Commissions are an important factor to consider. The agent will have to work much harder to find you a buyer when there are more houses available than buyers. You can count on them to negotiate on your behalf.