Types of Listing Contracts You May Encounter:
What is a Listing Agreement? A listing contract is an agreement between you and a licensed real estate broker that authorizes the broker to represent you in the process of selling your home. These are very common in the St. Augustine, St. Augustine Beach, Ponte Vedra and St. Johns markets.
Are there different types of Listing Agreements realtors use in the St. Augustine market? There are several different types of listing contracts, but very few of them are used. The most common one used is the “Exclusive Right to Sell”. But you will find that there are a lot more types, allowing you to choose the level of authorization to give to your agent. Here are some of them:
Considered the one most generally used, this type of contract is for people who are want to both sell their home and work with real estate agents. What the contract does is giving the right for agents to do showings of your home, and gives them an amount of commission if the client chose to buy your house. The good thing about open listing is that there are nothing exclusive or painfully bonding about them. The bad thing is that you can expect less marketing or advertising done.
This type of listing contract is pretty much the same to open listing. It’s generally used by people trying to sell their own home and involving an agent for the home showings. The listing contract identifies the potential buyer and guarantees the agent a commission if that buyer buys the home. Just like open listings, this type lacks of marketing efforts.
Exclusive Agency Listing
During your home selling, you will find that different types of listing contracts involve a lot of different people. This one involves a broker. Basically an exclusive agency listing will give you the right to sell your own home, without paying the broker any commission unless the house is sold through a licensed real estate professional. Should the house be sold without any help of agents, the contract allows homeowners to pay no commission at all. The reason why this type of listing contract is widely used is the temptation of not having to pay your broker.
Exclusive Right to Sell Listing – MOST COMMON
The most popular type of listing with sellers and brokers, especially in St. Augustine, Ponte Vedra and the St. Johns area, this contract type allows your broker to control your listing to do what is needed to sell your house. For obvious reasons, this is probably the type of contract where you can expect the most incentive from the agent – and in return, you typically get a concentrated marketing effort. Interview your realtor before signing the listing agreement. Make sure to get your prospective realtor to outline their intended marketing efforts for your property. A solid marketing campaign from a proven realtor can increase your chances for a successful sale.
Feel free to discuss the possibilities and disadvantages of each type with your prospective realtor. Remember, a listing contract is your first legal step in selling your house – take that step carefully. If you have questions about your legal rights or need a lawyer to advise you on contract matters, the attorneys at St. Johns Law Group stand ready to undertake your representation.