Once you have found a real estate agent for your home, you will be shown a listing agreement. Prior to signing this document, it is important to understand what it encompasses. The Southern NH listing agreement terms below will make you a better educated seller.
Commission is usually specified as a percentage of the selling price. It is against the law for brokers to state that a rate is standard across the industry. Each company determines its own rates and, similar to everything else in real estate, it may be negotiable. It is important to understand the expertise and value provided by individual real estate brokers when comparing their rates. Simply finding one with the best rate may not actually benefit you in the end.
Listing agents usually split a specific portion of the fee with co-broke agents (buyer agents). The fraction offered is shown in the MLS system. Higher rates can sometimes encourage buyer agents to show your listing and, conversely, lower rates may discourage other agents. This is especially true when competition is high. If the co-broke commission is not listed, you can ask about it.
Lastly, the agreement also notes when the fees are technically earned. It is important to read this language carefully. Your contractual obligation to your listing agent is not the same as those owed to others. Therefore, it is not merely based on a closing.
You must authorize your broker to complete particular tasks. The most important one is to submit the details of your listing into the local MLS (multiple listing service). This service networks the information to all real estate agents and to a list of authorized websites. By expanding the pool of home buyers that see the information, you will increase the chances of it being sold and for a better amount. Placing signs, attaching a lock box, and scheduling open houses are other services that you may be requested to authorize in the listing agreement.
Real estate brokers are not strictly salespeople. They are in fact agents in the legal sense and have specific obligations under real estate law. These are called fiduciary duties and include care, lawful obedience, accounting, confidentiality, diligence, disclosure, and loyalty. In general, your real estate professional must work for you and look out for your best interests. There can be situations where a agent also represents a party attempting to purchase your home. The listing contract will specify how this shall be addressed, such as mandated disclosures, and what services will be given to each party. Make sure that you completely understand the potential scenarios and are comfortable with them.
Southern NH Listing Agreement Terms
The Southern NH listing agreement terms in this article are some of the most common components of listing agreements but may not include everything in your specific agreement. As with any type of agreement, review the full document carefully, inquire about things that are confusing, and seek additional help if you desire legal advice.