Listing Agreements

A listing agreement is a contract in which you hire a real estate firm to find a ready, willing and able buyer for your home in exchange for a set fee.

Three types of listing agreements:

• With an exclusive right-to-sell agreement, you pay a fee regardless of who produces the buyer. This fee covers many important services that the sales professional performs above and beyond finding a qualified buyer.

• In an exclusive-agency listing, if you find a buyer, he or she is not obligated to pay the fee. If the sales professional finds a buyer, then the fee is paid to the real estate company.

• An open listing is one in which you sign with several real estate firms and give each authority to sell your home. It is typically less effective than an exclusive listing because the sales professional lacks the incentive to make an all-out effort to sell your home.