For this short post I will use "long term" to refer to a period of seven or more months and will address three points.
When the decision has been made to place a home on the market is it necessary for a seller to have a long term listing agreement when hiring a real estate agent? Why would a real estate agent want a longer term listing agreement?
From the real estate agent's perspective a listing agreement is their employment agreement. It says to an agent...I work hard, accomplish this and I will get paid down the road.
As a Realtor I view a long term listing agreement as an early sign of an owner being committed to the idea of selling. But a long term listing agreement does not automatically show a seller is committed to the process of selling.
Some of the things a seller can do to demonstrate commitment to the process of selling include:
- Preparing their home for the market.
- Pricing it reasonable for the market, condition and circumstances of the sale.
- Accommodating all reasonable showing requests.
- Choosing a professional real estate agent with local (neighborhood) knowledge, experienced and demonstrated success to market their home.
- Working with their real estate agent to do the things necessary to meet their goal.
Nowhere above does it imply a seller must "sign a long term listing agreement."
So how long should a listing agreement be?
Every broker/office/agent has a different policy. That is the good thing about the real estate business. There are no set fees or listing contract requirements.
I suggest this question be asked of any agent who wants a twelve month listing agreement?
"What will you do in the last six months that are so critical that will not be done or achieved in the first six months."
If the average days on the market in this area is XXX days, why would an agent need more than the average? If the average days on the market is 90 days then 180 days should be quit eadequate. Also, ask any agent interviewed the policy for cancellation if you decide to sell or are dissatisfied with their service.
This post is not an indictment of anyone who has a one year listing policy but rather is meant to stimulate questions when interviewing agents to sell your Melbourne, Florida home.
Finally, there are some houses that have unique qualities or challenges which may require longer exposure to the market.
If you are in Viera or Melbourne, Florida and considering selling your home, call or text me at 321-693-3850 or send me an email.
As a matter of policy I rarely have a listing agreement for over six months unless a property is unique in some way or will require additional marketing efforts. Still, there are circumstances that may require a long term listing agreement such as a short sale.