What Is a Listing Agreement?
- Tracy Sutherland
- 2 days ago
- 1 min read
A listing agreement is a legal contract between a homeowner (seller) and a real estate agent or broker.
It gives the agent the right to market and sell your property under specific terms.
In simple terms:You hire the agent, and this document defines how they get paid and how long they represent you.
📌 What a Listing Agreement Includes
1️⃣ Listing Price
The agreed asking price of the property.
2️⃣ Commission
Usually a percentage of the sale price. This is paid at closing.
3️⃣ Listing Duration
Commonly 3 to 6 months. It can be shorter or longer depending on the market.
4️⃣ Type of Agreement
This is very important.
🔑 Types of Listing Agreements
✅ Exclusive Right to Sell (Most Common)
The agent earns commission no matter who finds the buyer.
⚖️ Exclusive Agency
You can sell the property yourself and avoid paying commission.
❌ Open Listing
Multiple agents can market the home. Only the one who brings the buyer gets paid.
Most professionals recommend Exclusive Right to Sell because it ensures full marketing commitment.
💼 What the Agent Promises
Market the home (MLS, social media, networks)
Coordinate showings
Negotiate offers
Handle paperwork
Guide through closing
⚠️ Before You Sign
Ask:
What’s the cancellation policy?
What marketing plan will you use?
What are the commission details?
Are there additional fees?
Never sign without fully understanding these terms.
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