Listing with an Agent
What is a "Listing"?
A Listing is when you create a written agreement with a real estate agent to represent you in the sale of your home. The Listing Agent then has the task of marketing your home, putting it on the MLS, being your advisor and advocate, negotiating on your behalf, completing Purchase & Sale contracts with you and walking the sales transaction through to closing. In exchange for their services, you agree in a Listing Agreement to pay the Listing Agent a specific commission if they bring you an offer from a "ready, willing and able" buyer. Commissions are paid at closing from the proceeds of the sale.
A very powerful tool that is available to real estate agents is the Multiple Listing Service (MLS). It is essentially an online database of thousands of properties for sale all across the country. Agents working with buyers scan it daily for new listings that meet the needs of their clients. When your Listing Agent lists your home on the MLS they essentially multiply your sales force. Now you don't just have your Listing Agent working to get your home sold, you have hundreds of agents in the area doing it. If one of those agents represents the buyer in purchasing your home your Listing Agent will generally split their commission with the buyer's agent.
What is a "Listing Agreement"?
A Listing Agreement is a contract between the seller, their Listing Agent and the Multiple Listing Service (MLS). The Listing Agreement states all pertinent information about the property, including price it will be listed at, any personal property included with the sale, any real property not included with the sale, any special showing arrangements (i.e. hours), amount you agree to pay in commission, duration of Listing contract, permission for your agent to put your home on the MLS and internet, etc.
Can you sell your home without an agent?
Sure. But generally it is harder, more stressful, will take longer and you won't get as high of a price. Over 80% of homes are sold through a Listing Agent. Out of the other 20%, some are sold within already-established relationships, like selling to a family member or a tenant. The rest are sold FSBO, also known as For Sale By Owner.
Here are some reasons why homes have a better chance of selling if listed through a Listing Agent:
- Since most homes are sold through agents, most agents representing buyers look on the MLS for homes. They don't seek alternative methods like newspapers - which is the primary avenue that FSBOs have to market their properties.
- Another reason that buyer's agents just look for homes on the MLS is that homes listed on the MLS have an agreed-upon commission stated up front. In other words the buyer's real estate agent knows they will get paid for their efforts. Bringing a buyer to a property listed in the Bellingham Herald is risky for an agent because there is no contract binding the seller to pay them a commission. They could be working for nothing...not very motivating for most people!
- Yet another reason that buyer's agent don't bring clients to FSBO properties is that the homes listed on the MLS have a lockbox (a box that contains the house key that agents can access) while FSBO properties do not. It is much easier for an agent to view homes with their clients if they can just get in with their own key. Making appointments with owners who will have to be there to let them in is a hassle. You'll miss out on potential buyers because their agents will just skip your home.
- Being a buyer's agent on a FSBO property always ends up being more work for the buyer's agent as well. Not only are they educating their own client, many times they end up educating the seller on contracts and the escrow process. And they have to handle every detail from both sides - not just for their own clients. They suddenly doubled their work for the same commission.
Commissions may seem like a lot, but you are paying for the education and experience of a professional. If you pay a lawyer $200 an hour to prepare a form for you, you may think that seems like a lot just to fill out a piece of paper. However, that lawyer has had years of education and experience that tells him the advantages and disadvantages of filling it out in a particular way. He knows exactly what to do, say and write that is in your best interest with the law in mind. I don't know about you, but I'd rather pay the lawyer than personally read thousands of pages of law books to learn what they know and still risk making errors. In recent years, the process of selling a home has become much more complicated. With the 1997 change in Washington State Agency Law, ALL agents, except the Listing Agent, represent the Buyer in a purchase transaction unless specifically stated to the contrary. Have someone on your side too - there are rarely any buyers without agents on their side.
Invest in a professional and the whole experience can be easy, stress-free, exciting and net you more money than you could get if you attempted to do it yourself.
Services I provide to get your home sold:
- Assist you in determining the most marketable price for your home. To get a free Market Analysis right now, just click the link and fill out the questionnaire.
- Suggest improvement tips to enhance the positive aspects of your home. I'm in numerous homes every single day and have the experience to know what stands out (good and bad) in a home from the buyer's point-of-view.
- Professionally market your home.
- Develop extensive internet exposure for your home.
- Arrange immediate installment of a For Sale yard sign with a flyer box.
- Create a highly professional MLS listing with beautiful photos of your home.
- Saturate the real estate community (agents, brokers, appraisers, etc) with information on your home.
- Bring you qualified buyers.
- Host a broker open house (for agents only) and public open houses.
- Provide you feedback on how many people have viewed your home and what they thought of it, as well as how many agents have viewed your listing on the MLS.
- Represent your best interests and consult with you regarding negotiation on all offers.
- Assist you with calculating your proceeds from the sale.
- Foresee, mitigate and handle any issues that come up throughout the listing.
- Oversee the entire closing process.
- Listen to you and do my very best to alleviate your concerns and achieve your desires.
- Communicate as much or as little as you like - and in whatever fashion you prefer (in person, phone, email).
- Educate you on any aspect of the process that you care to know more about.
- Build a trusting, respectful, educational and fun relationship with you.