When you work with a real estate professional to sell your home, you’ll first negotiate a listing agreement. Both you and the agent you select will sign the agreement.
Consumers Guide to Listing Agreements provided by National Association of REALTORS®
Here’s what you need to know:
What is a listing agreement?
A listing agreement is a contract between you and your agent. It says the agent can represent you, market your property to potential buyers and their agents, and help establish the sales price for your home.
It will also outline the professional representation, services your agent will provide, and what they will be paid for. Agent compensation is fully negotiable and not set by law.
What are my options for agent representation?
The options available may vary based on where you sell your home or who you work with. Some of the most common arrangements include:
- Exclusive Agency Listing Agreement: You work with just one agent and agree to compensate them if they sell your home. This allows you to retain the option to sell your home yourself without compensating your agent for the sale.
- Exclusive Right-to-Sell Listing Agreement: You work with just one agent, but you are responsible for your agent’s compensation, no matter who sells the property.
- Limited-Service Listing Agreement: You work with just one agent who provides a limited set of services, such as publicly marketing your home on a Multiple Listing Service (MLS)—an online platform that compiles home listings from different sources. The agent may not provide other services, such as arranging showings, providing input on purchase offers, or supporting the negotiation process.
- Non-Exclusive Listing Agreement: You work with one or multiple agents and agree to compensate the agent who ultimately sells your home.
What services might be included in a listing agreement?
The listing agreement typically outlines the agreed-upon methods your agent will use to sell your home.
Your agreement might include information on how your property will be marketed. This could include listing on an MLS, offering a seller concession covering some costs associated with purchasing a home for the buyer or compensating a buyer’s agent. Read more about MLSs here, offers of compensation, and seller concessions.
Are offers of compensation mandatory?
No. It is up to you to determine if making or authorizing an offer of compensation is the best approach for selling your property. Agents who are REALTORS® are here to help guide you on marketing strategies.
How do I know what will work best for me?
When you work with a REALTOR®, you work with a professional guided by ethical duties under the NAR Code of Ethics. This includes the pledge to protect and promote the interests of their clients.
Your agent will work with you to help you understand the market. And they will help you weigh your options, answer questions, and confidently reach an agreement. You should consult an attorney if you do not understand the agreement or have concerns about it.
Practices may vary based on state and local law.
Consult your real estate professional and/or consult an attorney for details about state law where you are purchasing a home. You should always know who represents your interest in any real estate transaction.
REALTORS® are members of the National Association of REALTORS®
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