Are these contract terms "normal"? (6 month listing)

[Silverfall]

My company standard is 6 months because the average is 4 months in my area. I require 12 months for unique, hard to sell properties. I also have a termination fee, but I don't charge the termination fee and marketing expenses. The point of the fee is to cover those. I personally wouldn't sign a contract that required both.


While I rarely agree with jbiggs, I do agree with this.

Originally Posted by jbiggs

They have a written marketing plan for your home that is much more than just listing it in the MLS.

I have an addendum that gets attached to each listing that specifically states what marketing will be done, down to the number of color flyers they will get.

I also have a clause that states that they received a copy of my CMA, which is much more thorough than the BPO form is, and agree to take my pricing advice.

Originally Posted by jbiggs

1. The contract specifies that if they do not perform at any time you have the right to cancel with no penalties or other clauses what so ever! By perform you must look at the marketing plan and any other activities they are claiming in writing they will perform.

I agree with this as well. I have this clause in my contract which is why the addendum is crystal clear. They know exactly what I am agreeing to provide to them. I also have the clause that if the seller breeches the contract they owe me my full fee. It seems only fair that if I'm asking them to pay me if they breech a contract, that they get to terminate my services if I breech the contract.

Originally Posted by jbiggs

1. Never sign a contract, regardless of the length, that states once the listing period is over you have to do anything or owe them anything even if you find the buyer one day after the listing contract expires. Be very careful as many of these contracts have those clauses in there.

This isn't how the protection clause works. You can't get paid for a buyer that is found the day after the contract expires. Agents only get paid for buyers that were found while the contract was active. The OP would be eliminating most agents, and often really good ones, by not agreeing to allow them to protect themselves.

jbiggs, by encouraging people to take such an extreme stance you are encouraging consumers to work with some of the worst agents out there. The good ones are able to pick and choose clients because they are good and have steady business. They don't have to put up with unrealistic demands.

MovedFromFL, I am a bit dismayed that you placed your house for sale and are just now questioning the terms of your listing agreement. The contract sounds one sided, when they really should be more fair to both parties. I'm hoping you hired a good, ethical agent so that the contract isn't really relevant.

[cobble]

Originally Posted by jbiggs

One more thing is to get everything in writing from the used home salespeople so there is no doubt or disagreements later!

"used home salespeople" Really? Really?

I only take listing agreements for a year, norm for my area. We do have a clause that if one our Buyers makes an offer that is excepted after the listing period (for 6 months) we still get a commission.

[middle-aged mom]

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The thing about ( used) real estate agency is if the property sells too fast, the seller assumes the agent persuaded them to give it away. If it takes forever to sell ( at a substantially reduced price) the seller is more inclined to perceive their listing agent as a lazy good for nuthin.

Average listing time is hooey. What it means is this is how long it takes the average highly motivated seller to come to terms with what the market will bear for their property and price it accordingly.

Back to the issue at hand...one year listing contracts are the most common in my area and a cancellation fee in unheard of, unless the commission is less than the most common rate of 5%, split 4 ways. In the former case, the listing agent assumes the business risk. In the latter, the seller assumes the business risk.

[lynnhayes]

If you like the agent you can negotiate with the agent to remove that cancellation fee. There is no "standard" - everything is negotiable. The agent might need the broker's permission to make changes.