The Listing Contract: Its All in the Details

Now that you've chosen a real estate professional to sell your home, you'll need to work together to complete a listing agreement. This legally binding contract authorizes a broker and his or her real estate professionals to find a buyer for your home, according to the conditions specified in the contract. Depending on the type of listing agreement, you can expect to see most of these terms detailed in the document.

Terms of the Agreement
The length of time the contract will be in effect typically runs anywhere from 30 to 90 days, depending on the local market. Since a contract can be extended before it expires, you may not want to lock yourself into an automatic extension.

Under Terms of the Agreement, you'll also find the price of the home. You and your real estate professional should arrive at the home's market value after considering the Comparative Market Analysis (prepared by your representative) and other factors.

Commission
It may come as a surprise that commissions are not set by the industry. Real estate professionals expect to earn between 6% and 7% of the sale price, depending on what's customary in the area. If another real estate professional finds a buyer, the commission is split between the two. Although commissions are negotiable, this practice tends to be reserved for special circumstances. For instance, if a real estate professional knows of an interested buyer, this would eliminate the need to market the home. To close the deal, he may be willing to cut his commission.

Multiple Listing Service (MLS)
This section authorizes a real estate professional to list your home with the MLS. An MLS listing gives your home greater visibility and even exposes it to Internet users. Of course, you have the right to opt out of listing with the MLS. But why should you, when it can dramatically increase the chances of selling your home.

Lockbox
This hollowed-out padlock or miniature safe holds a key to your home. The lockbox, which usually gets attached to the front door, allows easy access for anyone showing the home. Only a person with the combination or with an electronic key can gain entry.

Description of the Property and Its Condition
Here you'll find a description of the property and its general condition as well as the condition of its major systems-mechanical, plumbing and electrical. Along with the description should be a list of the items that will stay with the home, for instance, the washer and dryer, and those you intend to remove such as a light fixture.

Although the forms are preprinted, everything in a listing agreement is negotiable and may be tailored to reflect your specific requirements. Your real estate professional will complete the listing agreement based on your input, so you may want to take time before you meet to consider your response to each section of the contract. The more prepared you are, the less likely you'll have a misunderstanding down the road.

Neda Dabestani-Ryba is a Realtor in Maryland. She is a member of the President's Circle of Top Real Estate Professionals. She can be reached at (800) 536-3806 or visit her website for more information: http://neda.dabestani.pcragent.com/.

Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Hermosa Beach was the biggest gainer and Malibu the biggest loser in high-priced ZIP Codes last year. San Marino shows a 7.2% decline in its median home price.

Last year brought a dose of real estate reality to San Marino, which alone among Los Angeles County's wealthy areas had managed to avoid the housing bust. The San Gabriel Valley town endured a 7.2% decline in its median home price, erasing gains of the previous two years.

The National Assn. of Realtors is the largest campaign contributor to members of Congress from California in recent years, according to a watchdog study that depicts the nation as a sort of United States of Special Interests.

More than 40 states signed onto a proposed $25-billion deal with major mortgage servicers over faulty foreclosure practices. New York, Nevada and Delaware joined California in holding out for better terms.

More than 40 states signed onto a proposed $25-billion settlement with major mortgage servicers over faulty foreclosure procedures, but California, New York and other key states were still not among them.

California has until Monday to share in a multi-state deal with banks to obtain mortgage relief and reforms. Atty. Gen. Kamala Harris, who walked away from talks last year, says the door remains open.

With a Monday deadline at hand, California officials have resumed direct talks with the Obama administration about joining a multibillion-dollar, multi-state mortgage settlement with the nation's largest banks, a source said Sunday.

The talk show host pays $12 million for the 4,088-square-foot house with four bedrooms and four bathrooms. The ocean-view home sits on 1.26 bluff-top acres with beach access.

In one of the more talked-about transactions in town, actors Brad Pitt and Angelina Jolie have sold their Malibu beach house to daytime host and comedian Ellen De Generes for $12 million.

The four-bedroom, five-bathroom house built in 1920 for industrialist James Wigmore lists for $2,875,000.

A decorative cast stone entrance opens to this restored Spanish Colonial Revival-style house in Pasadena's South Orange Grove area. Built in 1920 for industrialist James Wigmore, the house retains such original details as coffered wood ceilings and arched doorways.

They don't believe they can sell their property for what it's worth, so they're spending money on making their homes more comfortable.

Do you fit any of these descriptions?

A biennial research report by the National Assn. of Realtors indicates that a handful of real estate agents and brokers and their clients either don't know the law or don't care to follow it.

When it comes to lawsuits, real estate agents and brokers tangle mostly among themselves.

The president aims to help about 3.5 million people with good credit who are unable to refinance at historically low rates because their homes are worth less than their mortgages.

 

The White House hopes to help millions of homeowners lower their monthly mortgage bill with a $5 billion to $10 billion plan to set up a streamlined refinancing program for people who are current on their payments.