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.
