What is a listing agreement? As a seller, you'll be mostly working with your trusted listing real estate agent. In Ontario, it is required that a brokerage hires real estate agents. The A listing agreement is a legal agreement between the seller and the real estate brokerage, not the real estate agent. The listing agreement authorizes the brokerage to market the house on behalf of you, the seller.
What is the difference between exclusive and nonexclusive listing? The listing agreement can accommodate for exclusive listing or listing with Multiple Listing Service (MLS). MLS is a powerful marketing tool with extensive popularity. Most of the residential properties are sold using MLS marketing. With an MLS listing agreement, the brokerage will post your home's listing via the Multiple Listing Services. The MLS marketing allows a simultaneous exposure of your home to everyone using the MLS. Note that MLS records the history of all the properties posted, sold or not sold. Hence, a property posted multiple times and not sold may carry a stigma; for example, buyers may wonder what is wrong it the property. Many houses do not sell because of the overpricing, so it is crucial to have all the selling elements correctly before considering the MLS listing.
On the other hand, with an exclusive listing, your agent will market the home. You will never get the same marketing exposure compared to the MLS listings. However, the exclusive listing has its advantages. Exclusive listing can be suitable for a unique property. You can have better control over marketing, privacy. If there is no rush in selling your home, you may test the market to hammer out the best marketing strategy for your home.
Now that you know more details on the listing agreement, here are some questions that you should ask the agents. You like to know what papers you will be signing. You want to make sure that you have time to review paperwork and your listing agent to answer any questions that you may have. How long will my listing agreement last? The listing agreements are typically 3 - 6 months. It's an important question to know and make sure that you're comfortable working with that agent for that period.
It would be best if you asked them about the holdover period clause. The holdover period is the period after the listing agreement expires. The holdover clause entitled the listing brokerage to collect commission; if you sell the property after the agreement's expiration. The holdover period is typically 30-90 days after the agreement ends. The holdover period can be complicated and tricky; you should ask questions to understand the details better.
About the author: The above Real Estate article was provided by David Khosravi, a leader in his field in Willowdale, North York, Toronto. Reach out to David via email: email@example.com or by phone: 416.990.2424