Probably every real estate agent has his own idea how long a listing should be, probably the longer the better. From the sellers standpoint, I'm sure that asking for a year's listing makes the seller think it will take that long to sell it.
Why would a seller sign a long listing? Here's the biggie:
The "I don't have to sell" seller:
This is one that agents should RUN from because there is a hidden meaning in those words:
It will be overpriced! Heck, it's probably WAY overpriced!
And here is what happens next:
1. The agent will take on the listing, but wants a year's listing period.
2. The house won't sell.
3. The seller finally realizes that he will not get his price - this can take up to year.
4. The seller and agent finally decide on a price reduction.
5. The house still does not sell, even if it is now priced right.
1. The seller is very disappointed.
2. The seller does not renew the listing.
3. The seller hires another agent who prices it correctly.
4. The house sells within a few days.
5. That agent is the HERO and will get all that sellers future business!
So what happened?
This is the age old story with an overpriced house. Buyers have great expectations when they look at it, but when they realize it isn't special at all, in fact, way overpriced, they and their agents pass on it.
In fact, agents don't come back with other clients either, they don't want to disappoint others as well. So the house doesn't get any traffic until another agent takes over.
By the by:
I've actually seen this happen several times with the same house, until finally it sells. And usually quite a bit less than it should have, had it been priced right to start with.
So what's the answer, how long should a listing period be?
It depends on your sales price and the market your are in.
Why this photo? You can build a very complicated doggie fountain, but to the everage dog, the water is still the same. Really, think about it. You can't sell the public a bill of goods if it doesn't have the value. TIME will not change that.