If you’re planning to list your home for sale soon, you may have seen a listing contract. This contract is a binding agreement between the seller and their Realtor about how the home will be listed for sale, including the timeline and compensation.
Most Realtors in Pennsylvania use a form called the “Exclusive Right to Sell.” Here are three things to keep in mind before signing:
1. Carefully consider the Starting and Ending dates of the Contract. These dates are typically located on the first page of the document, and they detail how long the agent is provided with the exclusive right to sell your home. In other words, you may not hire another agent during this time period. Many local real estate agencies ask for at least six months or one year. At EveryHome, we understand that circumstances can change, so we happily offer all of our sellers an “easy-out” listing contract where you can take your home off the market at any time (we just ask for 7 days notice so that we can pull your listing from our marketing partners!).
2. Commission! Real estate agents almost always work on commission, meaning that they only get paid if you sell your home. The commission amount (typically a percentage of the sale price) is usually located on the bottom of the first page, and most local agencies charge 5-6% or higher.
3. As the name of this form suggests, this form also ensures that the real estate agent will provide representation and be compensated regardless of who finds the buyer for the home. In other words, even if the seller decides to sell to a friend, the listing agent will still provide services and be paid for it.