What is a Listing Agreement, Why do I Need One, and How Long does it Last?

Posted by Rachelle Kubricht on Tuesday, February 7th, 2017 at 10:39pm.

When a person decides to sell a house, the first thing he or she probably thinks to do is call a Real Estate Agent -- it’s only logical.

A Realtor will help you with all of the logistics such as how to price your home, recommending a proper inspector and making sure that your house is ready and fit to go on the market.

However, in order to make sure all of these things get done a listing agreement must be signed. Now unless you are a realtor, work in the real estate business or are just a real estate vocabulary expert, you may not know what a listing agreement is. To clarify, a listing agreement is a document signed by the seller of the home and the real estate agent enlisted simply stating that the realtor has the right to list the home. The terms generally include specifics such as the desired price as well as what might be accepted, the duration of the listing period, the size of the commission and any exceptions to the commission. These things are all determined by the lister and their agent who compromise until they meet a common middle ground they can both sign and agree to. The terms of this agreement are binding, so it is pertinent for both parties to review them thoroughly to make certain that the provisions are indeed fair.

As you can probably deduce, a listing agreement is important in the process of selling a home. Not only for the home sellers who are trying to ensure a speedy, profitable sale of their home, but for the real estate agent as well who is aiming for a most successful project. So is in the future you decide to sell a home, make sure that you choose a promising realtor and hammer out a listing agreement that will meet all of your real estate needs.

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