The listing agreement includes specific information about the property, along with agreed-upon terms between the agent and seller. The document lists:
Property Description
This section includes the address of the property, as well as items that will be included or excluded from the sale. Since fixtures such as ceiling fans and window treatments are usually included, the Property Description will list any fixtures that will be removed prior to purchase. It will also list any personal property, such as furniture or playground equipment, that the buyer will receive.
Listing Period
The listing period identifies the timeframe in which a realtor will attempt to sell the home. Most contracts are valid between three and six months, but this is negotiable depending on the state of the real estate market. At the end of the listing period, the homeowner is free to either sign another listing agreement with the same agent, hire a new agent, or take the home off of the market.
Listing Price
The agent will recommend an asking price for the home based on a comparative market analysis, which identifies similar homes in the St. Louis area that have sold in the past 90 days. If the homeowner needs to sell the home quickly, he or she may request to list the price lower than what the agent recommends. Once the seller agrees upon a listing price, it will be included in the contract and will not change unless an addendum is added or a new listing agreement is drawn up.
Broker Duties/Marketing Plan
In this section, the realtor will list all the ways he or she plans to promote the home throughout the contract period. Common marketing tactics include listing it on the MLS, promoting it on social media pages, and arranging open houses.
Commission Terms
The seller will state what percentage of the sale price the agent will receive upon closing on the home. In most cases, a total commission of 6% is split evenly between the buying and selling agents.
Protection Period
This section states that if the agent shows the home to potential buyers, but those buyers don’t decide to purchase the home until the listing agreement expires, the agent will still get commission if it’s within an agreed-upon protection period.
Mediation and Dispute Clause
Most listing agreements state that if any disagreements occur between the seller and agent, that they will hire a third party mediator to resolve the issue.