The real estate market continues to be a strong industry through the years. With more people looking for residential properties, it’s even considered a hot market because there are more buyers than sellers. If you’re a seller, you’ve probably decided to work with a real estate agent to facilitate the selling process and help you stay ahead of the competition in the seller’s market.
But before your agent can legally represent you in the sales process, you need a listing agreement or a contract that will authorise the representation. Essentially, listing agreements are binding contracts that specify the terms and conditions for listing, marketing and closing a deal. They contain essential details, such as the agent’s commission amount, length of the agreement and terms and conditions when the property is sold before the contract’s expiration. With these things in mind, a seller like you needs to be familiar with all the details of a listing agreement and how to navigate it.
Read on to learn some six tips for managing listing agreements.
Keep The Lines Of Communication Open
It’s also crucial to keep the lines of communication open with your real estate agent. Because they act as your authorised representative in the selling process, you need to communicate with them more frequently to keep everyone on the same page and avoid potential misunderstandings.
To ensure open lines of communication, it may be best to have regular check-ins with your real estate agent. Doing so allows you to ask questions about how the selling process is going. This can be a perfect opportunity to discuss things and obtain feedback.
Also, you can manage your listing agreement more successfully if you have a clear open-door policy about communication. This means your agent shouldn’t hesitate to come to you if they have queries or concerns that need to be addressed immediately. That way, they can properly perform all their duties under the listing agreement.
Cancel The Agreement If Unhappy Or Dissatisfied
Like other real estate agreements, the seller may terminate a listing contract based on some justifiable grounds. Typically, you may get out of the agreement if you believe your agent isn’t performing well or is unethical.
However, it’s essential to know that terminating a listing agreement isn’t always easy or possible. You may need to review your contract to determine what it says about termination. Then, you may also have to identify the reason for wanting to cancel the agreement. Some common causes of cancellation can include bad communication, no internet exposure, mismatched personalities and unethical behaviour.
On the other hand, there are also instances when the listing agreement could no longer be cancelled or terminated. For example, if you’re already far in your selling process, and your agent has already invested a lot of time and energy, you may be unable to change your agent.
Thus, if you’re unsure about whether you can cancel a listing agreement or how to cancel it, click to read about this kind of contract.
Set Clear Expectations From The Start
Generally, managing a listing contract can be complicated and challenging if you’re unclear about what to expect from the selling process. That’s why one of the things to keep in mind when dealing with a listing agreement is to have clear expectations from the start. That way, you can minimise the risk of disagreements between you and the agent.
Among other things, you need to be clear about the selling price you want to charge for your property, the selling timeline, or who is responsible for the renovations and repairs. By setting clear expectations right from the beginning, you and your agent can fulfil all the provisions in the listing agreement without conflict and without wasting time, money and other resources. It will also be clear to your agent what to say to prospective buyers.
Once all the details are clear, you may have everything put into writing.
Have The Agreement In Writing
Another way to manage your agreement is to ensure it’s in writing. Having a written listing contract with your real estate agent has several benefits. It can help avoid misunderstandings. It can also help you monitor whether the terms and conditions of the contract are being met.
If you recall the agent saying you’ll get internet exposure but notice that you’re not, you can always go back to the agreement and remind your agent of the provision. Hence, it’s essential to have the contract in writing to manage it properly and avoid disputes due to misunderstanding.
Give Your Document The Right Look
If you’re too busy to draft your listing agreement or too apprehensive to make one because it’s your first time or you’re not confident of your writing skills, you can get help with the preparation of your listing agreement.
There are virtual assistance services you can try to this end. Find experienced ones who can prepare your agreement in accordance with state regulations. This also ensures that your agreement carries the correct format. A professionally written document will send a message to your real estate agent that you truly mean business.
Utilize An Electronic System
Managing listing agreements would be much easier if you could keep track of them. Because of this, it’s important to use an electronic system for tracking listing contracts.
Having a system that allows you to store or access contracts easily can be crucial to the success of your real estate transaction. This is because it can ensure that all documents are retrievable when you need them.
Plus, you get to keep your documents organised and minimise loss or destruction.
Final Thoughts
Having a listing agreement is important when selling a property with the help of a real estate agent. If you want to avoid any unpleasant surprises during the selling process, keep the information mentioned above in mind. That way, you can have a smooth and successful working experience with your agent.