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How Long Should I Sign A Listing Agreement For? How About 3 Years.
This week I met with four different home owners who had just terminated their relationship with their previous broker. In each of these situations I noticed one strange component with the terms of their previous listing agreement...the length of the contract.
 
The length of the agreement between the broker and the seller can vary. In high-dollar homes (over 1 million) it is not uncommon to see a 1 year listing agreement, especially if they involve land or commercial transactions. 
 
But what about the run of the mill $300,000 home? 
Does it really matter if you're in Austin or Houston? I can't speak with clarity about another market, but I wouldn't advise anyone in Texas signing a 1-2 year listing agreement ANYWHERE in Texas for a 300k listing. I suppose there could be a special and very bizarre situation, but I can't think of one.
 
One of my newest clients found herself in a THREE year listing agreement for a 200k house. For the life of me I can't understand the benefit of handcuffing a client for that long. A lot of personal relationships don't make it 3 years, how in the world could a broker and seller get along THAT long talking about open houses, fliers and price ... more

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