When you decide to hire a real estate agent to help you find a buyer for your home, you will be required to sign a contract called a listing agreement. A listing agreement will state a lot of important details relating to the agreement between you and your agent, and you may have some room to negotiate with certain aspects of the agreement. Here are three things you might want to negotiate as you work with your agent to create a fair listing agreement.
The Commission Rate
Real estate agents only make money when they sell homes, and they earn a commission rate on these sales. The rate can vary; however, it is common for it to be set between 5% and 7%. This is something you can talk to your agent about. If the agent offers a 7% commission, you might be able to negotiate to a 6% rate.
Agents can negotiate with their rates; however, you should keep in mind that they do not typically get to keep the entire commission. The commission is usually split between the agent that lists the house and the one that sells it. In addition, the agency the agent works for will generally get a percentage of the commission too.
The Length Of The Contract
The length of the contract is another item you can negotiate with your agent. Agents typically do not like agreeing to 30-day contracts, simply because this is not a long enough time to market and sell a house, but they may agree to a 60-day contract. You can choose a contract length for much longer than this too, and you can talk to your agent to find out what the right length of time would be for you.
The Type Of Listing Contract
One other thing you can talk to your agent about is the type of listing contract you will use. The most common, and most preferred by agents, is an exclusive listing. This type of listing offers a commission to the agent no matter who sells the house. In other words, it gives the agent the exclusive right to sell your house and earn a commission from it. There are other types of listing contracts, though, and you can discuss these with your agent.
Selling your house is a big event, and you will want to make sure you find an agent that is willing to work with you. To learn more, contact an agency in your city today.