What’s the Purpose of a Listing Contract with a Realtor®?

Darryl & Stan review the purpose of a listing contract for sellers and Realtors®.

When you’re ready to sell your Tulsa, OK home, it’s important to interview several agents to find the right one for you. It’s also important to have a signed Listing Contract, for both your benefit as much as the benefit of your Realtor® and the brokerage they work with. Understanding the purpose of a listing contract is key to understanding what you need to know before you sign on the dotted line.

A listing contract is a legally binding document which represents the good-faith agreement reached between a home seller and agent/brokerage. These contracts are typically valid for 6 months and include the specific expectations of both parties towards selling the property at hand. When I sign up with a client selling a home in Tulsa, our signed listing contract is between the client and myself as the Realtor® as well as my brokerage, eXp Realty.

Within the contract as a home seller, you will have assurances that your agent will provide a strategic marketing plan and utilize their resources and expertise to aid you in selling your home. A Realtor® under a contract doesn’t get paid unless a house sells; it’s in their best interest to give your listing the attention it needs to sell well.

As an agent puts forth a lot of hours and revenue to market a client’s property, a signed listing contract also gives them a form of insurance against their risk of losing time and money should a seller change their mind about working with them. In essence, unless there are mitigating circumstances where it’s clear an agent is not providing services as agreed upon, sellers cannot simply walk-away from a listing contract before the term is up.

So, what does a home seller do if they’ve hired a bad agent or things aren’t working as they had hoped? There are options and communication is key. A listing contract is truly between a home seller and the real estate brokerage an agent works with. If you are dissatisfied with the results of your agent, you can discuss options with the broker; it could be another agent within the brokerage will be a better fit, or perhaps the broker will agree to release the contract early if the term is close to ending.

As a home seller or buyer, you want to have an agent whom is a good match for you. Client or not, I encourage anyone looking at residential real estate in Tulsa, Broken Arrow, Sand Springs, or anywhere in the state or nation, to check out the 20 Questions I have compiled which can help you start the conversation with potential agents.

This in-depth guide is a valuable resource to assist you through the process of finding the right agent. Download my FREE home seller and home buyer report,20 Questions You Absolutely Must Ask Your Next Agent Before You Sign on the Dotted Line for a complete list of questions include in an agent interview when hiring a Realtor®.

For real estate questions, contact The Baskin Real Estate Specialists of eXp Realty at 918-732-9732 or darrylbaskin.com