Listing agent contract (for sale by owner, real estate, credit)

[Houston_2010]

what is the typical timeframe for a seller to post in the contract for a particular agent. I realize timeframes will vary from person to person. But I guess my question is - is there a general term that most people use?

[crone]

Are you talking about how long to list your house with an agent? 180 days or 6 months. The listing agent will be spending some bucks to get your house out into the market. They need time for their plan to work. Some will do it for 90 days, but prefer 180.

[tdhg566]

Originally Posted by crone

... The listing agent will be spending some bucks to get your house out into the market. They need time for their plan to work...

At the risk of offending the RE agents who frequent this forum, the fact is that listing agents spend very little bucks on the listing process. It consists of (a) signing contract (b) gathering information for listing (c) taking pictures [this could cost if agent doesn't take own pictures] (d) developing listing on HAR (e) putting sign in yard (f) waiting for buyers to call.

It's the buyer's agent who spends the time, gas, energy dragging clients around and trying to sell them a house. They deserve the lion share of the commission.

Don't let anyone tell you that open houses contribute to the sales process. They don't. Open houses are a way for listing agents to contact and gain new clients for whom they can be the buying agent, and to show the seller that they're paying attention to the property. It's very, very rare for anyone to walk through an open house and say "I'll buy it". Does happen, but not very often.

Of course listing agents will always consider their listings first when encountering a buyer, but the odds of any one agent being both the listing and buying agent are microscopically small.

Approximately 90% of homes are sold because they were first discovered by the HAR listing. To paraphrase a political quote, "it's the HAR listing stupid" (no offense intended). This is why I used a discount broker (not a for sale by owner agent). I wanted that HAR listing to be right, and current. As I did more work on the house, I took new pictures and he posted them. I paid the listing agent 1% and the buyer's agent the full commission. I WANT to pay the buyer's agent for the time and trouble they spend dragging buyers around and convincing them to buy my house.

To your question directly, I would sign a 90 day contract, no more. If there's not significant action on the house during that time, it's either priced incorrectly, or there's something wrong (cosmetically, structurally, geographically, etc) which of course enters into the price. What I mean is that some houses have few "defects", but are just priced too high.

[Houston_2010]

Thank you. We think our agent is great, but then again, I wouldn't want to get "locked in" into an extended contract and then realize I shouldn't have. My agent already admitted that pretty much anyone can list a house. She worked pretty well with us at buying my current house, timely and informative. I anticipate she will do the same at selling my old one. The house will hopefully get listed this week, and she's already done several weeks of checking out possible comparable homes in my area so that we set the price at a realistic number.

[chris_ut]

I agree that 90 days is the max you should consider. After all if your agent is good you could always renew after 90 days but if your agent is horrible then 6 months is a long time to sit around waiting out a contract.

[SkyeAnjel]

tdhg566- I agree depending on the rice range of the house, the upper end ones do cost more to advertise.Also don't forget that the listing agent is also negotiating on your behalf. In general, we all pay for the HAR, lock boxes ( which are expensive!) signs etc..As for HAR, the reason you get that publicly is because the agents pay for that, that is not "free" like alot of people think.
The buyers agent is the one who spends all the money dragging people around ( and many times they don't buy or get another agent at the last minute..this is why commissions are high, we take all the risk up front and don't get paid unless you actually sell something. The buyers agent also never gets any credit for the sale if the house..the sign says "sold" and its assumed that the selling agent sold it. It is also my opinion that an agent should never represent both sides. If I have a buyer for my seller,then I should refer buyer to another agent. You cant represent a sellers best interest and a buyers at the same time. Other agents will disagree but if i am supposed to sell your house at the highest price and best terms, how can I get it for the lowest and best terms at the same time? I also believe open houses are great for cross-sales. I bought my own house when when of my friends went to an open house, called me and told me I have to see this house. I bought the house after seeing it. I never would have seen it without her because i had no interest in the neighborhood. (this is before I was an agent).

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This brings to mind that there are pros and cons in real estate sales and what I am talking about are the agents (the pros) who do a lot for their buyers and sellers in getting them or their homes being seen or seeing homes and the agents (the cons) who simply do the least and expect the most. I have seen both and the most important issue for the home seller or buyer is to look at more than one and listen to what they offer. In this fast moving technical age it is no longer the one with 25 years experience that makes them the best either. It is truly in my opinion listening to what they are going to do and seeing if they are listening to what you are saying.

If like the post above you want to take on a lot of the work that a real estate pro typically does then a discount broker may be the way for you.

As for the term of a contract, 6 months is more fair however the parameters of that depend on how well you and your agent have worked together. If you list your home for sale and you are not getting any or very few showings in the first 60 days then typically some thing is wrong.

In my opinion as a real estate agent it comes down to perceived value. Do potential buyers (important that buyers is plural) see that the home has the perceived value it is listed at?
Many times the seller sees their perceived value is set as just not reasonable but absolutely correct.

Above all for anyone wanting to buy or sell a home, please be ready to listen and be heard!