SELLING SMITH MOUNTAIN LAKE VA REAL ESTATE

Before You Sell
Does Moving Up Make Sense?
8 Reasons Why You Should Work With a REALTOR®
12 Questions to Ask When Choosing Your REALTOR®
5 Things to do Before Putting Your Home on the Market
Understand Agency Relationships
What is Appraised Value?

The Seller's Agent represents the individual or family that is selling a home. REALTORS®. overwhelmingly require a written contract in order to list the property for sale. This is true because of the time, effort and expertise that the REALTOR® adds to the process. A listing agreement is a binding legal contract that shouldn't be taken lightly. You should read and understand it before signing it. Your REALTOR® will explain the contract to you, but if you need legal advice, you should consult your attorney.

Listing contracts can vary considerably in different parts of the country, but most REALTORS® use established listing agreement forms that are the standard in their area or are required by their brokerage company. The terms of the contract on these forms were established to protect all parties in the agreement, but like most things in life, everything on these preprinted forms is negotiable.

Some of the terms you will see on the contract include:

1. The Term of the Agreement - This is the timeframe that you agree to work exclusively with your REALTOR®. REALTORS® spend lots of time and money marketing your home. The term protects the agent during this period. In a weaker market a longer agreement benefits the agent because it allows him or her more time to find a buyer for your home. In a strong market you don't want to be committed to one agent for more than a few months because your home should sell quickly. If the home doesn't sell within the initial period you have the choice to end the agreement or if you are satisfied with the agent's efforts, you can offer to extend the term.
2. Commission - This is the fee paid by the home seller to the REALTOR® for selling your home. The commission is usually split equally between the listing or selling agent and the buyer's agent. Although commissions are negotiable, most areas have a standard percentage that agents expect to receive. This amount usually is 6 percent of the sales price, but you will find agents who accept 5 percent and agents who ask for 7 percent. A lower commission will save you money, but can also reduce the agent's incentive to market your property. A higher commission will give the agent more incentive to invest time and money in marketing your home. Other agents can find out how much commission is offered on your home through the MLS. The agent's commission technically shouldn't be renegotiated as part of the purchase agreement between the seller and the buyer, but some agents will give a little to close a price gap between the seller and buyer, consequently making the transaction viable.
3. MLS (Multiple Listing Service) - A listing agreement typically authorizes your agent to post your home in the MLS. This is the database that is used for agents to match potential buyers with your home. The only sellers who would not want their property posted on the MLS would be those selling a very exclusive property or those that have serious personal privacy concerns. The MLS helps the agent market your home to the widest possible group of potential buyers. Today, most MLS databases are accessible by consumers on the Internet.
4. Lockbox - A lockbox is a tiny key-holding safe that can be inconspicuously attached to the front of your property. The lock box gives any agent who has the means of accessing the lockbox (e.g., the key or combination) the opportunity to show your home to prospective buyers even when neither you nor your agent is present. Any agent showing your home should call your Seller's agent to inform them that a showing will take place. If you're concerned about strangers entering your home alone without you or your agent present, don't authorize a lockbox. Remember though, the more people who see the property, the better chance you'll have of selling it for a favorable price.

For a free booklet from the Virginia Association of Realtors on buying and selling homes visit this web site: Virginia Association of REALTORS