Listing Agreement Tips

By
Real Estate Agent with Eiglarsh Realty

In my continuing series of tips to share, I'd like to offer some ideas to include in your listing agreement.

1) Have the start date read: This agreement begins when it is signed by the Seller

2) Have the expiration date pre-printed as "This agreement expires after "X" months, ending on the last day of that month.  This way, having it pre-printed gives it the appearance that the length of the agreement is not negotiable.  Also, ending the listing on the last day of the month, gives you extra time and makes it easy to keep track of when your listings expire.

3)  Include "This listing shall be extended by "X" days for every price adjustment.  I explain this to my seller that I shouldn't be penalized for time that I tried to get you the highest and most money. If we were both wrong by selecting a higher price, I want to recoup this time.

4)  Also include "The term of this listing shall be extended by an amount of days equal to the time it was removed from the market for an offer that was excepted but didn't close". This way I'm not penalized for deals that go bad!

5)  After the place to write in the price, I add one of the following clauses (depending on which listing agreement I use that month-I experiment with different ones)  "reduced to __________ after 10 days, reduced to _________ after 20 days, reduced to __________ after 30 days"  or I use "Seller agrees to reduce the price by 5% every 10 days for a total of ______ reductions".  This way I don't need to call for a price reduction, it's already agreed to at the listing appointment.

6) Where you would put the commission amount, I have pre-printed 6.5%, 7.0%, 7.5%, 8.0% (circle one). This way the client sees what my minimum commission amount is. It shows that my commission is negotiable but from the amounts that I choose!

7)  Processing fee disclosure, broker relationship & affiliated business disclosures are printed on the listing agreement so there is less paperwork to get signed. The more you pull out & show the prospective listing client, the more intimidating it is, the more they will say "I need to read it over" & the harder it is to get it signed!

8) Any other terms that would ordinarily be filled in by hand are already pre-printed. As an example, our listing says we get 50% of any deposit retained for default by a buyer. The 50% is already pre-printed. Again, the seller is less likely to want to negotiate it if it's pre-printed on the form.

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Rainmaker
197,711
Roberta Murphy
San Diego Previews Real Estate - Carlsbad, CA
Carlsbad Real Estate and Homes
Excellent suggestions, David! We have found that pre-printed forms simplify negotiations immensely.
Sep 05, 2006 01:35 AM #1
Rainer
59,620
Bob Pavey
RE/MAX Hometown - Aventura, FL
CRS
David Great stuff I use most of what you are doing I have to try the automatic reduction process in my listing agreetment.Good shared stuff like allways
Sep 05, 2006 01:41 AM #2
Ambassador
2,975,553
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Good stuff.

I have handwritten at the top: "7%,8%,9% or 10% Please circle one" and the "please circle one" is highlighted in Yellow.

 www.HomeRome.com

Baltimore,Md

 

Sep 05, 2006 01:47 AM #3
Rainmaker
599,895
Jim Lee
RE/MAX Shoreline - Portsmouth, NH
Portsmouth NH Realtor, Portsmouth, NH

Great tips folks.

We can also print our listing agreement online with a 'fill in the blanks' before printing option.

I think most people see pre-printed language as more 'non negotiable' than something that's hand written in .

David, your listing forms must have way more room than ours, I could never write, print, etch, engrave, or get all that verbage into our forms in any way.

Sep 05, 2006 01:58 AM #4
Rainmaker
599,895
Jim Lee
RE/MAX Shoreline - Portsmouth, NH
Portsmouth NH Realtor, Portsmouth, NH

Great tips folks.

We can also print our listing agreement online with a 'fill in the blanks' before printing option.

I think most people see pre-printed language as more 'non negotiable' than something that's hand written in .

David, your listing forms must have way more room than ours, I could never write, print, etch, engrave, or get all that verbage into our forms in any way.

Sep 05, 2006 01:58 AM #5
Rainer
463,571
Maureen Francis & Dmitry Koublitsky
Coldwell Banker Weir Manuel - Bloomfield Hills, MI
Coldwell Banker Weir Manuel

I like your ideas. Like Jim, we would have to get new pre-printed forms to make space, but that is not such a bad thing.

The last day of the month expiration date could be a tip off to your competitors that your listings all expire on the same day, in case they are circling looking for expireds.   

Sep 05, 2006 02:39 AM #6
Rainmaker
63,125
Adam Dalton
Century 21 M&M and Associates - Turlock Real Estate - Turlock, CA
Realtor - Turlock Homes
Thanks for the list!
Sep 05, 2006 08:50 AM #7
Rainer
36,692
Sara Lipnitz
Max Broock Realtors - Birmingham, MI

David,

This post was one of the most helpful I've seen in a while.  I'm going to print it out so that I can start to implement some of these ideas.  VERY GOOD... VERY GOOD

Sep 05, 2006 09:06 AM #8
Rainer
124,528
David Eiglarsh
Eiglarsh Realty - Weston, FL
CRS
If you want the listing agreement in Word format, shoot me an email at info@eiglarsh.com and write listing agreement in the subject & I'll send it to you.
Sep 05, 2006 09:20 AM #9
Rainmaker
1,142,050
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Very good David, I really like the commission percentage options. I will be adding that to my agreements today. Thanks for another helpful tip.
Sep 05, 2006 10:15 AM #10
Rainmaker
365,049
Carolyn Nelson
Realty One Carolina, LLC - Burlington, NC
Your Triangle to Triad Real Estate Expert!

Great Tips David!

Another tip I tell a lot of agents they should consider is having the seller sign a copy of the FULL MLS REPORT. By doing so, the seller has the chance to review and agree to the information listed on the MLS. No surprises and I didn't agree to later. It can be a simple stamp that you or the assistant will stamp on each page of the Full MLS REPORT that states:

 

I have read this information and

deem it to be accurate 

 

___________________  ___________

Seller Signature         Date

 

___________________  ___________

Seller Signature         Date

 

 

The stamp should be in BOLD RED and stamped on all pages. If there are two names on the deed, both are required to sign. 

Sep 05, 2006 12:43 PM #11
Rainer
36,692
Sara Lipnitz
Max Broock Realtors - Birmingham, MI
I actually put an addendum together that includes some of the ideas.  Thank you again!
Sep 05, 2006 03:14 PM #12
Rainer
8,811
Carlos "Chaz" Mena
RE/MAX Premier Associates - Weston, FL
Great suggesstions. I totally agree with that.
Sep 06, 2006 12:48 AM #13
Rainer
503
Maricel Ramos
Coldwell Banker George Realty - Monterey Park, CA

Really GREAT idea! I will use this for my next listing.

Sep 06, 2006 11:15 AM #14
Rainmaker
298,297
Ray Saenz
Exit Realty Laredo - Laredo, TX
Homes for Sale in Laredo, TX - Texas, Realtor

Nice tips :)  Good Luck guys

Sep 06, 2006 04:16 PM #15
Rainer
70,376
Caleb Mardini
Bellevue, WA

This is a great post and these are great suggestions.  I really like the end of the month idea for expiring listings.  One thing everybody reading this.  Please check to make sure it is legal for you to put in a commission before you do so.  It is possibly a violation of law, or local real estate board rules to have any commission preprinted into a listing agreement.  Check with your broker or an experienced attorney before printing in an amount.

Sep 07, 2006 06:27 AM #16
Rainer
46,690
Mrs. Sheri Ann Johnson, GRI
Tropic Shores Realty - Spring Hill, FL

Great information David! Thanks for sharing. My team leader at Keller Williams told us to always have your contracts end on the same date every month so that they were easily remembered.

I also type ALL of my contracts up in the computer prior to the listing appointment. The only field I leave open is the listing price.

Sep 10, 2006 03:42 PM #17
Rainer
96,676
Martin Dorgan
Prudential Indiana Realty - Columbus, IN
Those are some great tips David, I'm going to submit them to my broker, with my blessings, for her opinion, but I imagine she will opt for adjusting our forms. I'm not going to discuss numbers, but that is a great way to potentially increase commission.
Jan 26, 2008 09:08 AM #18
Rainer
334,174
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

Wow David, I know its an old post but you can still get most of those items to fly with your buyers now can you?

Mar 29, 2012 01:21 AM #19
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