When a homeowner decides to sell the house, there are different approaches that he can take. Number one is he might decide to sell the house for cash to the cash buyers, or he might decide to advertise the house himself by putting up a board indicating the house is on sale. Thirdly and the subject of our discussion is the option to list the house. Home listing involves entering into a formal agreement with a House arenāt/ REALTORĀ® so that the agent acts as the legal owner of the legal owner of the house and sells it on behalf of the homeowner. If the REALTOR is a member of the National Association of REALTORSĀ®, he will have to include in the contract the term that the listing is valid.
Term of the Listing Agreement
The listing agreement duration is negotiable and therefore the REALTORĀ® and the homeowner should come up with an agreed period and define it in the contract. Note that the term can be one month, six months, a year or any other term as the two might agree to. Here are the things that you should take into consideration when determining the listing agreement term. Ā
Allow Enough Time to Market the House Effectively
You should come up with a term that takes into consideration the marketing of the house. Therefore, it is important that you consider the marketing method to be used, and how soon this will begin. Some agents will not take less than two months to do an effective marketing of the property. For the homeowners, most of them will allow up to six months considering that advertising and home staging needs to be done. The bottom line is that you should consider the time it will take to effectively market the home.
Consider the Economic Factors
There are seasons when the house business is not so good and others when the business will perform well. You need to factor in the time of the year. This is because people might be willing to buy but they donāt have money to place a deposit now. This is more of an economic challenge issue and affects the agentās ability to sell the house. Therefore, you should factor this too,
Allow a Clause to Consider Possible Extension of the Agreement
There are some special cases when you might have to extend the agreement. These include when the agent finds a willing buyer on the last day of the validity of the agreement. In such cases, there should be a consideration for the extension of time. In a listing agreement, the assumption might be that the house is ready for sale and nothing else needs to be done. Therefore, if you are the agent, you should check the house condition before agreeing to sign the agreement. If the house needs some renovation, you need to ask the owner to renovate the house before the listing agreement comes into force.