Thoughts Before Signing A Listing Agreement

If you're thinking, "what could possibly go wrong?" When it comes to selling your house, you're either incredibly lucky or haven't been through the process before. But don't worry, let's dive in and explore some solutions.

You carefully selected your broker, but despite your best efforts, your house hasn't sold. You're feeling frustrated and disappointed with your broker for various reasons, and you're starting to think it's time for a change. However, the problem is that you might be stuck in a 6-month listing agreement with no way out. So, what can you do to avoid this situation before signing on the dotted line? Let's find out together.

Before:

When a broker is trying to win your business, it's easier to negotiate terms that will protect you in case you need to terminate the agreement later on. Never sign a listing agreement for more than 3 months, and make sure there are no clauses that will bind you if you want to end the contract early. Remember, negotiating before signing is always easier than after, when it gets quite impossible.

Cancelation:

Many brokers will tell you that canceling the agreement won't cause you any problems and that they won't charge you anything. However, it's essential to get this in writing. Don't take their word for it, as things can quickly change once the agreement is signed.

If you've read the other chapters, you may already know if your broker is the right fit and their revenue. However, it's also vital to have a conversation with them and ask about their partners and role in the closure. This can provide insight into their confidence and knowledge of the area. Don't be afraid to ask questions to ensure that you're making the best decision for your home sale.

Here are some useful questions we ask while hiring a broker:

• Describe your last 6 sales, did you get the asking price, above asking or under asking?

• Commission rate between 4.5%-5%. (Check out our dedicated chapter.)

• Attendance - is your broker the one planning to do the open houses, or are they planning to send a different agent?

• How often will they have an open house?

• Who will maintain the property clean and who will be the one to pay for it?

• What light refreshments and beverages will be served during the open house?

• What happens if you get a phone call during an open house? (they will probably have several open houses at the same time).

• How often do they intend to update you on the listing? Will you get a weekly report?

To sum it up, it's important to remember that things can get complicated if you want to withdraw from a contract with your broker later on, no matter how nice they may seem upfront. Therefore, it's crucial to protect yourself by negotiating favorable terms from the beginning. Additionally, choosing the right broker is essential as they can make or break the success of your home sale. Hiring the wrong broker can lead to not only a lot of aggravation but also cost you a significant amount of money. So, take the time to choose wisely and ask questions to ensure that you're making the best decision for your home sale.

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