Do You Need An Agent Contract When Listing Your Home?

Posted on: 10 October 2022

You might be ready to move to a new house, but you'll have to sell your current home before buying a new one. So, when you're ready for this, you must find a real estate agent. This agent becomes your contact person and helps you find a buyer and settle the deal. But will your agent require a contract? If so, why do you need one, and what does it say? Here is a guide to help you learn more about a listing contract you must sign when selling your home.

The contract protects you 

First, you should realize that this contract protects you. Yes, that's right. You'll have protection through this document, as it will state the terms you agreed upon with your agent. Therefore, you must read through it before signing your name to ensure that it states the right information. One way it protects you is by stating the percentage you agree to for the commission. The agent can't charge you a higher rate than the rate the contract states.

The contract protects the agent

Secondly, the contract protects the agent. This contract is a listing agreement that tells the agent that they will receive a commission from the home sale. It won't matter if another agent sells the home; the listing agent always earns a commission. Therefore, you can't find your own buyer and expect to avoid the commission. Instead, you have a contract to protect the agent from events like this.

You can negotiate the details

The listing agreement includes numerous details, but you can negotiate some of these. First, you can negotiate the commission rate with the agent you hire. When meeting with your agent, you can talk about the commission to learn more about it. Then, you can agree on a rate. Secondly, you can agree on a timeframe. For example, how long do you want to list your house? The agent might suggest signing a six-month contract. However, you can sign a shorter or longer one. Your agent can also help you make other decisions, such as where to place a lockbox at your home.

Find an agent for help

Do you want to sell your house or buy one? Maybe you want to do both, and you'll need a real estate agent for assistance. Contact real estate agents in your area to learn more about this process. They can offer some advice and guidance.