You've decided to sell your home, You know how much money you need to get out of it. You've contacted a Real estate agent about listing the home. The agent goes through the niceties and then whips out the paperwork for you to sign. ......STOP
Do you know what you're signing?
Having been at both ends of real estate transactions, buying and selling, and having learned about these features in a prior life, I am aware of the options. But, how many first time sellers are aware that the documents you sign could lead down the path to Hades?
The document I refer to is the Listing Agreement.
How many first time or for that matter second and third timers are aware that there are three main types of Listing Agreements?
1. The Agents favorite... The Exclusive right to sell listing
This listing, No matter who sells the property, generates a commission for the Agency. Even if you were to sell the property to your neighbor yourself, you still owe the agency a commission.
2. Ok...you won't sign option #1, The "exclusive" how about .... The Exclusive Agency listing
Only slightly better than the Exclusive right listing. In this case you reserve the right to sell the property on your own. Should you generate the sale, you do not owe a commission to the listing agency.
3. The agents nightmare..... The OPEN listing.
Under this type of listing, you can place your property for sale with as many agents as you wish and.whoever sells it gets the commission... including the owner.
I'd like to see pros and cons regarding each type of listing from agents on these boards.
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