Once you have interviewed and selected a listing agent for your home, you will be shown a listing agreement. Before signing this paperwork, it is important to understand the terms. The Grand Rapids Michigan listing agreement details below will make you a better educated seller.
Commissions and Fees
Commission is normally itemized as a percentage of the sales price. It is a violation of anti-trust laws for brokers to indicate that an amount is fixed in the market. Each company determines its own fees and, like everything else in real estate, it may change. It is important to assess the experience and services provided by individual brokers and companies when comparing their rates. Simply selecting one with the lowest fee may not actually be the best choice.
Listing professionals commonly split a specific percentage of the fee with buyer agents. The fraction offered is displayed in the MLS system. Higher percentages can sometimes encourage buyer agents to show your home and, conversely, low rates can discourage other agents. This is particularly true when the number of listings to select from is high. Be sure to find out what the percentage will be if it is not shown.
Finally, the agreement also indicates when the listing commissions are actually earned. It is important to read this language carefully. Your contractual obligation to your listing agent is separate from that to any other parties. Therefore, it is not merely dependent on a closing.
You must permit your agent to perform specific tasks. The most important one is to submit the details of your home into the local MLS (multiple listing service). This database networks the listing to all real estate agents and to a list of authorized websites. By enlarging the exposure of your listing, you will improve the likelihood of it being sold and for a higher value. Putting up signs, attaching a lock box, and performing open houses are other services that you may be requested to sign off on in the listing agreement.
Real estate brokers are not strictly salespeople. They are in fact agents in the legal sense and have distinct obligations under the law. These are referred to as fiduciary duties and include confidentiality, care, obedience, accounting, loyalty, diligence, and disclosure. Basically, your broker must work for you and protect your best interests. There can be instances where a real estate professional also works for a buyer interested in purchasing your property. The paperwork will specify how this should be handled, such as required disclosures, and what services will be due to each party. Make sure that you fully understand this and are comfortable with them.
Grand Rapids Michigan Listing Agreement Details
The Grand Rapids Michigan listing agreement details in this blog include only the most typical terms of listing agreements but may not address all language in your specific agreement. As with any type of agreement, review the entire document carefully, ask questions about anything that is not clear, and seek additional assistance if you require legal advice.