What listing contract will you choose?

Published by julia | Filed under Buyer / Seller Tips, Market Trends, Pinellas County Homes, Real Estate

Did you know there are different types of listing contracts a home seller can have with a real estate agent? These contracts give authorization to the real estate agent hired to sell the home.

Open Listing Contract – The open listing contract is used by home owners who want to sell their home on their own, but are willing to give a real estate agent the ability to show the home and advertise. The conditions of the contract often state that the home owner will pay the real estate agent a commission if they sell the home. The open listing contract is not very bonding and the home owner can expect less push from the real estate agent.

One Time Show Contract – The one time show contract is generally the same as the open contract. The home owner allows the real estate agent access to the home for use with showings. If the real estate agent were to sell the home based on one of their showing, the home owner agrees to pay that agent a fee or percentage.

Exclusive Agent Listing Contract – The exclusive agency listing contract allows the home owner the ability to try to sell the home on their own and not pay a fee to the real estate agency. If the agency sells the home, however, the owner will need to pay the agreed upon fee. This contract often comes with more advertising and a stronger push toward selling the home by the agency and the broker. The exclusive agent listing is one of the most commonly used in real estate today.

The listing contract is a legal agreement. The home owner will be entering into this agreement with the real estate agent, broker or agency with the full knowledge that selling fees could be assessed if the home is sold. While some home owners want to save this money, selling a home can be a difficult task. The real estate agent has the connections needed to make selling a home a fun process as opposed to a huge burden.

The real estate listing contract can be voided if both parties agree to the terms of ending the contract. If one party is not willing to end the contract before the time stated in the terms of the condition, there could be legal ramifications and fees associated with ceasing the contract.