Listing Agreement | Seller Agreement | Dawn Ham 210-391-5160
When you want to sell your property, you'll need to sign a listing agreement. A listing agreement is a contract between the salesperson and seller that gives the salesperson (agent) the right to market and sell a specific property. Below is the letter I give my sellers outlining the process and details that aren't necessarily spelled out in the listing agreement (which is a legal sounding document because it is a legal document). Call or email Dawn Ham at 210-391-5160 with questions.
Listing Agreement Review
This document was generated in an effort to explain all details associated with selling a home to our clients and address any questions or concerns which may surface during the listing period/sale of your property. RE/MAX is the #1 real estate company in the world in all categories and was recently honored with the JD Power’s Award for top customer satisfaction. Therefore, as RE/MAX Associates, we feel it is very important to hold ourselves to the highest professional standards and present our marketing plan and other important information to our potential clients up-front and in writing before asking for a long-term commitment from you.
1. Listing Period: Most well-priced homes in the San Antonio metro area sell in 2-6 months. However, due to seasonal fluctuations in the market, in order to effectively market your property and maximize our chances of selling your property, we will require a 1-year listing agreement.
There is absolutely no charge to the seller if the property does not sell within the listing period; however, early termination by the seller will incur a charge of 3% of the list price. This is detailed in the listing agreement. This charge may be waived by the listing agent’s broker in a case of extreme circumstances at the broker’s discretion. Please read the listing agreement carefully, and raise any questions/concerns to your agent before signing.
2. Commissions: In order to properly allocate all necessary resources to the marketing of your property, our commission rate is 6% of the sales price.
We always offer the buyer’s agent a minimum of 3% of the list price as a commission rate; otherwise if we discount this rate many agents may choose not to show your property. We do not require, but do recommend, offering a bonus to the selling (buyer’s) agent or a commission rate greater than 3% to increase marketability.
You may qualify for one of several rebate programs I offer. Terms depend on the particular rebate offered.
3. Marketing: Your listing will be marketed in the following ways:
a. Multiple Listing System – The MLS is a database accessible by all members of San Antonio Board of Realtors where properties are listed for sale, rent, etc. As many pictures as are appropriate for your property will be taken by the listing agent, the best 25 of which can be used in the MLS listing. Any enhanced, updated, or additional photos will need to be provided by the sellers of the property.
b. Internet – All RE/MAX listings are enhanced on RE/MAX.com. RE/MAX.com is the #1 real estate company website in the world. There are approximately 40 additional websites which will feature your listing. In most cases, our agents have very little control over the content of these websites as the information is pulled directly from our MLS via an IDX feed. Some of these websites are Realtor.com, Trulia.com, Yahoo.com/real estate, Zillow.com, and MySA.com to name a few.
c. Yard Sign – A sign will be placed on the property with the following info: agent’s mobile phone number, office phone number, and agent’s website. Signs might also include a text capture and/or QR code. Text and website info is available 24/7, and all prospects requesting information via text or leaving a message will be given a follow-up call as quickly as possible or within 24 hours.
d. Open Houses – Holding open houses is generally an ineffective way of marketing a property and will most likely not be initiated by the listing agent. The results of open houses are especially poor on properties located off of high-traffic routes. If you would like open houses to be made a part of your property’s marketing plan, please notify the listing agent prior to signing the listing agreement to ensure you are 100% satisfied before moving forward.
4. List Price: Your listing agent will perform a Comparative Market Analysis of your property to determine fair market value and recommend strategic pricing. Ultimately, it is the property owner’s decision to determine the list price of the property. Properties listed above fair market value will normally not sell quickly, if at all, during the listing period.
To provide funds for the closing process and not pay out-of-pocket, we highly recommend that your list price exceed your mortgage payoff (if applicable) by a minimum of 10%. Your closing costs will run approximately 8% of your final sales price. This leaves an additional 2% for negotiation, seller concessions, etc. A net proceeds worksheet will be provided with each offer if you provide the listing agent with your currently payoff amount.
If your mortgage payoff exceeds 90% of the fair market value of your property, you are most likely not in a position to sell the property in a conventional manner and pay off all liens. There may be other options available to you in order to get the property sold such as owner financing/carry, short sale, or lease with option to purchase, etc.
5. Closing Costs: The bulk of your closing costs are going to fall into 2 categories: commissions (3% to buyer’s agent, 3% to listing agent) and title insurance policy. The title insurance policy is a traditional seller expense and rates are regulated by the State. Other traditional seller costs/obligations are providing an existing survey (or paying for a new survey) and providing a 1-year home warranty of the buyer’s choice.
In addition, a per diem, pro-rated portion of the property taxes for the current year will be taken from the seller’s proceeds at closing. This amount will be credited to the buyer who is responsible for paying the entire year’s taxes at the end of the current year.
6. Fiduciary Responsibilities: Responsibilities and representations of the sellers and listing agent are outlined in the listing agreement, but we felt the following are noteworthy:
a. It is the responsibility of the listing agent to represent the sellers honestly and ethically, all the while demanding the highest reasonable price for the property in the shortest amount of time.
b. The listing agent always represents the sellers as clients and any prospect attempting to purchase the property without representation will be treated fairly and represented as a customer. Any offer requiring an intermediary relationship will be disclosed to all parties in writing.
7. Communication: At a minimum, you will receive an automated property listing report from our website on a weekly basis. The report outlines web search activity on your property as well as details on other active listings in the area. Please rest assured that if you do not hear from your agent frequently, that this normally means there is nothing to report to you and the agent is respecting your time and privacy.
Any feedback received from other agents showing your property will be forwarded to you. We make three attempts to collect feedback from showing agents and typically receive feedback on approximately 40% of all showings.
If you would like regular updates via phone, email, etc. from the listing agent, please notify your agent prior to signing the listing agreement. Also, feel free to initiate contact with your agent at any time during the listing period.
8. Property Condition/Showings: In order to maximize showing effectiveness, we request that the sellers keep the property in show-ready condition at all times accessible and make the property as accessible to agents/potential buyers as possible.
a. Condition - A good rule of thumb is to minimize all clutter in the home and keep floors and counter-tops free of all non-permanent fixtures such as furniture and appliances.
b. Pets – Recent surveys conducted by NAR suggest that the majority of home buyers are “turned off” by the presence of pets or evidence of pet-ownership in homes they are considering for purchase. Therefore, we recommend that all pets be removed from the home or kenneled prior to showings. In addition to the negative effect pet odors, hair, and damage can have on the marketability of a property, some dogs can pose a hazard to potential buyers, and loose indoor pets may escape while agents/prospects are entering or exiting the home.
c. Curb Appeal – The first impression any potential buyer will have of your property is what they see as they drive/walk up. Therefore, it is very important to maintain the front lawn, shrubs, trees, and flowerbeds at all times making the appearance of the home as attractive as possible. Dirty or oil-stained driveways and sidewalks should be pressure washed and kept in clean condition at all times during the listing period.