What's in a listing agreement?

If the time has come to sell your Brampton house then either you will try it on your own or get the help of an agent. In order to be listed on the MLS you will have to sign a listing agreement with the agent’s company. Here are the main highlights of what’s included in a typical listing agreement just so you are not surprised when it comes time to sign one. Hope it helps!

Highlights of the Listing Agreement

• Authority.  This describes the legal relationship between you and the real estate brokerage, and it sets a time limit for the REALTOR® to sell your home.
• Exclusive or Multiple Listing Service? “Exclusive Listing” means that only your brokerage can find a buyer for your home. REALTORS® generally recommend a “Multiple Listing”, which allows them to put your home on the MLS®, and they can spread the word to other REALTORS (not just in Brampton but worldwide) to help find you a buyer. A listing on the local Multiple Listing Service gives your home maximum exposure and your commission stays the same. It really is the better way to sell.
• Price. The real key to attracting buyers. You have the final say over this magic number, but your REALTOR® will have very useful advice. If your house is in Brampton then be sure to pick an agent who specializes in Brampton. He will know market trends and exactly what the property can sell for.
• Real estate commission. This is usually a percentage of the final sale price, and you only pay once your REALTOR has found you an acceptable offer. The percentage is agreed upon between you and the individual brokerage. This can also be a fee arrangement.
• A physical description of your property. Your REALTOR® will itemize the lot size, the age of your home and the style of construction. They’ll list the style, number and size of the rooms. They will also be sure to include any outstanding selling features of your home such as “backs onto ravine” or “fabulous kitchen renovation”.
• Legal information The Uninvited dvd such as the lot number, land surveys and the zoning code will be included.
• Financial information like the minimum deposit you require with any offers. If you have a mortgage that can be assumed (taken over by a buyer) that information should be listed because it could make your home more desirable, especially if you’re locked into a lower interest rate than what is presently available.
• Completion date. This lets everybody know how long you need to move out, once your home is sold. The standard time is 60 or 90 days, but if you can be flexible be sure to make note.
• How the home will be shown. Normally your REALTOR will arrange appointments. Any specific instructions, such as “make sure the cat stays in” can also be noted. There are so many houses listed in Brampton at anytime it is vital that you not put many restrictions on when the house can be shown.
• What exactly is included in the price? Chattels and Fixtures.
  Chattels are moveable items like washers and dryers, microwaves and window blinds. Chattels are not automatically included in the sale, but sellers will often include them to sweeten the deal. Any chattels you wish to include should be clearly noted.Fixtures are permanent improvements to a property like central air conditioning, installed lighting and wall-to-wall carpeting. Fixtures are assumed to be included in the sale of the home unless you note otherwise. Maybe the dining room chandelier is family heirloom and you wish to take it with you. The line between chattel and fixture can get blurry, so leave nothing to chance! Go over every item with your REALTOR and make sure it’s accounted for in the Listing Agreement.

So there you have it. Hightlights of a typical listing agreement. Brampton real estate prices have taken a hit recently so get opinions of 2-3 agents on what the house can realistically sell for. Go with someone with the realistic price and a good marketing plan. All the best!

For questions on the Brampton or Georgetown real estate market drop me an email.