Obviously the name of the seller and
the property address will be
included in the listing contract.
There are many other things that are
included, too, and you should be
aware of them.
Price and Terms of Sale
When setting the terms of sale, the
main thing you are concerned with is
the price. You should have a basic
idea of what your home is worth by
keeping track of other sales in the
neighborhood. Plus, you have
probably interviewed at least two
real estate agents and they have
given you their own ideas. Exercise
great care in determining your
asking price, making sure not to set
it too high or too low.
In addition to the price, you will
disclose what personal property, if
any, goes with the house when you
sell it. Personal property is
anything that is not attached or
fixed to the home, such as washers,
dryers, refrigerators, and so on.
There may be some item that is
considered "real property" that you
do not intend to include in the
sale. Real property is anything that
is attached to the home. For
example, you may have a chandelier
that has been in your family for
generations and you take it from
home to home when you move. Since
the chandelier is attached to the
house, it is considered "real
property" and a reasonable buyer
would normally expect it to go with
the house.
Lockbox - Yes or No?
A lockbox is a basically a padlock
with a cavity inside where a key to
your home can be placed. Only
someone with an electronic key or
the combination can get into the
lockbox and access the key. Having a
lockbox available at your house
makes it easy for other agents to
get access to your house.
Without the lockbox, agents
representing buyers would have to
set appointments to meet you or your
agent at the house so they could
gain access and view the home. This
would be inconvenient. Since almost
every other house does have a
lockbox available, if you do not
allow one most agents will simply
not show your property. You will
miss out on lots of potential
buyers.
The listing contract specifies
whether you allow a lockbox or not.
It is locked into place, usually on
the front door and cannot be
removed. Only other agents can
access the key that is located
within the lockbox.
Real Estate Commission
In some areas of the country there
is a certain percentage that real
estate agents expect to earn as a
commission.This commission amount is
a certain percent of the sales
price.Or, some companies will charge
a set fee for their services.However,
just like anything else in real
estate, this amount is
negotiable.When completing the
listing agreement, you and your
agent will agree on the amount of
the real estate commission.
Multiple Listing Service
Your listing contract should specify
whether or not the house will be
listed with the local MLS (multiple
listing service). It is definitely
in your interest to have the house
listed. This is because your sales
force is automatically multiplied by
however many agents are members of
the local MLS. If your house is not
listed, then you only have one agent
working for you instead of many.
Agency Duties of a Listing Agent
The listing contract will specify
that your agent is acting as a
"seller’s agent." This means that,
in the sale of your house, they are
working for you and only you.
However, there may be times when
your listing agent has a client who
wants to buy your home. For that
reason, there is a little "wiggle
room" in the listing contract. If
your agent also represents the
buyer, the listing contract should
specify that they provide an
additional disclosure that details
their duties as a dual agent.
The contract also provides
permission for your listing agent to
act as an agent for others on other
transactions. They can continue to
list other properties, and represent
buyers looking at other homes.
Resolution of Disputes
There are times when you and your
agent have a disagreement that you
cannot resolve by yourselves. Maybe
the agent did a poor job or
misrepresented something. Maybe your
agent was really doing their job
correctly, but you did not
understand. Perhaps the agent will
have a dispute with you.
The listing contract specifies what
methods will be used to settle such
disputes. You can choose to accept
binding arbitration, which is
usually cheaper than hiring a lawyer
and going to court. Usually, matters
that can be dealt with in a small
claims court are excluded from
having to go to binding arbitration.
You are not required to sign or
initial the binding arbitration
clause. This would leave you free to
hire an attorney and pursue disputes
in civil court instead of binding
arbitration. Consult your attorney
for advise on this legal matter.
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