What exactly are listing commissions? In most cases, when a home owner decides to sell his home property, a real estate agent usually takes care of marketing and selling tasks. Of course, agents expect to receive a certain amount of commission from the purchase of the property.
If you seek assistance from a listing agent, usually, the commission that will be made from the sale of the property will be divided between the agent and the company that represents the buyer.
When dealing with a listing agent, there some concerns you need to clear up before signing the agreement. One question would be, will the agent enlist you in the Multiple Listing Service? The MLS is list of all real estate properties up on sale in your local area. This is the official listing that agents use to look for properties to market. If your property is listed in the MLS, you are reaching out more agents and more potential home buyers will find out about your property which means you have more chances to make a sale a lot sooner.
Will your agent promote your property to other agents?
Agents that personally bring in their clients to show the house have more potential to sell. This is because they know what exactly clients are looking for and which properties meet their criteria. These buyers are more seriously intent on buying a property than consumers who are checking out the house on their own.
What are the exact terms in the contract?
You need to very clear about the terms regarding paying the commission. While it may be clear that the agent will only earn his commission after a sale has been made, what happens if you- the home owner- is the one who backs out from the offer even though the offer meets the selling price stated in the agreement? Usually, the agent might still demand his commission for the efforts he made on finding the buyer who has made your expected offer.
Watch out for agents that offers a lower rate of commission.
Most of the time, there is a catch to this deal. For instance, he may convince you to sign up with other services for the real estate company he works for. Although you are offered a low commission on the sale of your property, you may find yourself tied up for their services at an expensive rate.
At other times, an agent who offers a low commission will not be doing much to market your property. He may just enlist you in the Multiple Listing Service and put a FOR SALE sign in your home and that’s about it. If this is alright with you, then there will not be any problem. But if you expect more effort from your agent, someone who asks for a low commission may not be the one you want.
These are just some points you need to inquire with your listing agent before deciding to sign the agreement. Ask all questions you can ask at the beginning and not after the agreement has been made.
About the Author
George Bents is a loan consultant with NewHorizon Finance and has been providing consumers
and business owners with home loans financing
since 1989. For years she has helped people with home loan problems especially
pertaining to home mortgage loans and bad credit home loans.
Copyright 2009
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