Buyers and realtors often work together without a written contract, but opposite is true for the sellers and the realtors. On listing side, written contracts are overwhelmingly the rule, but not exception. Obviously name of the seller and property address will be included in listing contract. There are some other things that are included that you should be aware.
- Terms of sale: While setting the terms of sale, the main thing have to concerned with is the price. The seller should have a basic idea of what the house worth by keeping track of other sales in that area. And, better interviewed probably at least two real estate agents and they have given their own ideas. Exercise great on determining asking price, make sure that the price is not too high or too low. In addition to the price disclose the personal property if any goes with house at along with sell. Personal property is anything that is fixed to the house or not attached, such as refrigerators, dryers, washers, and so on. There may be some items that are considered real property that don’t intend to include in the sale. The real property is anything that attached to home. In the listing contract make clear about these things.
- Commission: In most of the areas there is a customary percentage that the real estate agents and the companies expect to earn as commission. The percentage is vary from the type (residential or commercial) and region to region. This amount is mostly negotiable. At the time of completing listing agreement, your agent and you will agree on amount of real estate commission. When the commission is earned, it specifies in the listing contract. This is important and need to pay attention.
- Multiple listing service: The seller listing contract should specify whether or not the home will be listed with the local multiple listing service (MLS). It is definitely in seller’s interest to have the home listed. Because the sales force is automatically multiplied by many agents are the members of local MLS. If the home is not listed, then the seller only have one agent working for him/her instead of many.
- Responsibilities of agency and salesperson: Most of the people think that the real estate agent as a salesperson. Perhaps many agents would jump at chance to be just salesperson. But they are not just salesperson. Most of the sates have legislated it so that the real estate agents are also agents. The agents are responsible to their clients, and they have a fiduciary duty. Which means they are responsible to act in the best interests of their client. The listing contract specify that the agent is acting as seller’s agent. This means that in the sale of house, the agent is working for the seller and looking out for the best interests. If the agent also represents the buyer, the listing contract should contain an additional disclosure which details whether they continue to act as seller’s agent or assume duties of a dual agent.
There are times when the seller and the seller’s agent have a disagreement that seller cannot resolve by self. Maybe the agent misrepresented something or did a poor job. Maybe seller’s agent was really doing his/her job correctly, but seller did not understand. Perhaps the agent will have a dispute with the seller. Listing contract specifies the methods will be used to settle such disputes.