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I just received a copy of the Exclusive Right to Sell Listing Agreement from my realtor. I am in the process of reviewing this form. What are the things I should pay particular attention to? I know not to sign anything with an item left blank, but are they "tricks" that I should be sure to review?
Thanks for your help.
It is probably a standard form designed to protect the realtor's commission. Instead of asking on a forum like this, you should probably use a CA real estate lawyer who is familiar with our local regualtions. With the S.F. market so active there is little reason to pay huge commissions to do what you can do yourself with proper legal guidance.
My friend just sold her house in one weekend, used a lawyer to be sure everything was done properly, and had the legal process explained to her by someone with a legal education. Contracts are binding so if you don't understand what you are signing you could pay a lot for a mistake.
Two things to worry about. The length of the agreement and the commissions/fees.
But more importantly, you seem to be unsure of this agent. Concerned that there are "tricks". If you really feel that way, look for another agent. The agent you hire should make a commitment to help sell your home. They should tell you specifically what they will do to help you sell and help you price it so it will sell at the best price. You are paying them a lot of money for this service. There should be no "tricks".
Be realistic about the sale of your home and then trust them to do their job. Don't hire the first agent that promises more than they can deliver.
I agree, look at the length of the listing agreement and the commission amount, including the amount which will be going to the buyer's broker. You also have a decision to make whether or not to agree to arbitration rather than the courts if you have an issue with the broker. The clause and the place for initials are on the contract, but it is optional.
Look at the average length of days on market in your neighborhood, then add 30 days to figure what is an appropriate minimum length of the listing agreement. If you're happy with your listing agent, you can renew if necessary. If not, it allows you to move on to somebody else afterwards. If your price is unrealistically high, add more time to the listing agreement.
It is probably a standard form designed to protect the realtor's commission. Instead of asking on a forum like this, you should probably use a CA real estate lawyer who is familiar with our local regualtions. With the S.F. market so active there is little reason to pay huge commissions to do what you can do yourself with proper legal guidance.
My friend just sold her house in one weekend, used a lawyer to be sure everything was done properly, and had the legal process explained to her by someone with a legal education. Contracts are binding so if you don't understand what you are signing you could pay a lot for a mistake.
Two things to worry about. The length of the agreement and the commissions/fees.
But more importantly, you seem to be unsure of this agent. Concerned that there are "tricks". If you really feel that way, look for another agent. The agent you hire should make a commitment to help sell your home. They should tell you specifically what they will do to help you sell and help you price it so it will sell at the best price. You are paying them a lot of money for this service. There should be no "tricks".
Be realistic about the sale of your home and then trust them to do their job. Don't hire the first agent that promises more than they can deliver.
Don't sign a contract for more than six months and try to find out the going rate for commissions in your area so you don't pay too much. And then there's the price. Do your own homework on comps and don't necessarily accept the agent's appraisal.
Have you taken a look at the other listings of your agent to see how the homes are presented, both in photos and in the text? Have you attended one of his/her open houses to see how other homes are staged and whether there was enough signage, etc.?
Assuming you are satisfied with the quality of the agent, then move forward. The "tricks" will come down the road, as follows:
1. Perhaps as soon as a week, the agent will ask you to lower the price as a solution to his/her tepid "marketing."
2. The agent will schedule your open house at an odd time and give it a shorter-than-desired duration because he/she is trying to do two on the same day.
3. There won't be enough signs directing potential buyers to your open house.
4. You'll be told that the home is advertised on many, many sites on the Web, but if you check (and you definitely should), you'll discover that those listings are non-existent or contain only one photo and sparse language.
5. When offers come in, you'll be pressured to take a lowball price even though you could get more.
This is just for starters. There's not enough room here for all of the shenanigans that agents can pull. Come back here for more advice as your sale progresses. You're only at the beginning. Down the line is where you could really lose money if you're not careful.
Don't sign a contract for more than six months and try to find out the going rate for commissions in your area so you don't pay too much. And then there's the price. Do your own homework on comps and don't necessarily accept the agent's appraisal.
Have you taken a look at the other listings of your agent to see how the homes are presented, both in photos and in the text? Have you attended one of his/her open houses to see how other homes are staged and whether there was enough signage, etc.?
Assuming you are satisfied with the quality of the agent, then move forward. The "tricks" will come down the road, as follows:
1. Perhaps as soon as a week, the agent will ask you to lower the price as a solution to his/her tepid "marketing."
2. The agent will schedule your open house at an odd time and give it a shorter-than-desired duration because he/she is trying to do two on the same day.
3. There won't be enough signs directing potential buyers to your open house.
4. You'll be told that the home is advertised on many, many sites on the Web, but if you check (and you definitely should), you'll discover that those listings are non-existent or contain only one photo and sparse language.
5. When offers come in, you'll be pressured to take a lowball price even though you could get more.
This is just for starters. There's not enough room here for all of the shenanigans that agents can pull. Come back here for more advice as your sale progresses. You're only at the beginning. Down the line is where you could really lose money if you're not careful.
What other advice do you have? I've been through all of these shenanigans you listed above with a broker, and now that my listing has expired, need to pick a new one. Curious as to your advice so that I don't make the same mistake again.
I just received a copy of the Exclusive Right to Sell Listing Agreement from my realtor. I am in the process of reviewing this form. What are the things I should pay particular attention to? I know not to sign anything with an item left blank, but are they "tricks" that I should be sure to review?
Thanks for your help.
Length of time and commission %. If you're in San Francisco from what I read that market is on fire. You should have absolutely no problem selling. And I would try and negotiate on commission.
If you feel that there are shenanigans going on don't sign. Did you interview a few agents? How do you know this person? Reference or threw a dart at a phone book opened at the realtor page?
If you are really worried I would contact a RE lawyer and have him look at it. Make sure they sign it before you do. Make a notarized copy if you feel that they will fill in the blank skater. But truthfully if you're that worried you probably should go with a different agent. I mean you're about to trust someone with a HUGE portion of your personal life and finances
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