Realtors and sellers usually work together under the terms of a listing agreement. The listing agreement is a legally binding contract that sets out the terms and conditions of the seller and realtors role in selling a house.

Because the listing agreement is a legally binding contract you may wish to seek legal advice if you don’t understand everything that is written within it.

A listing agreement varies from place to place, however the majority of realtors use a set pattern, with their own variations. The listing agreement is totally negotiable and you should discuss the terms with your realtor.

There are many things to consider when negotiating a listing agreement. One important thing to consider is the term of the agreement; the time span of the contract. Length of a contract can vary depending on circumstances. A long term can favor an agent in a depressed market, giving them time to find a buyer, but in a good market it may not be so wise.

Commission is also an important consideration to look into when negotiating the listing agreement. The typical commission is 5-7% of sale price. Although a low percentage will save you money, a higher percentage may motivate a realtor more.

The MLS (Multiple Listing Service) should also be considered. The listing agreement entitles you to have your house listed on the MLS, giving the realtor a wider scope to find a buyer. You should remember that the MLS is not offered to the public.

Also you should discuss with your realtor if you want a lock box for your house. This box is one that contains a key to your home and is placed near your home. Only other realtors will have access to it, to show people around your house.

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