For Sale By Owner
 

Why List Your Home?

Why not just sell it yourself and save a lot of money. A lot of homeowners do this each year and are successful at it. But don't do it unless you know what you are doing. There are books on the subject, but even they won't give you the experience needed to avoid many legal, physical, and judgmental pitfalls involved. If selling real estate were that easy, all realtors would be millionaires. Statistically, about 30% are successful selling their own homes, while the rest ultimately list their home with a realtor.

Advantages of Using a Realtor.
Knowledge of the market, professionalism, experience, creative thinking, finding and screening qualified buyers, a wide sphere of influence, and a regular marketing plan. The listing of a home for sale in the MLS or Multiple Listing Service, which only a member realtor can provide, is a hugh advantage as it will expose the listing to every realtor and agency member of that MLS. In the Upper Cape alone that translates into almost one hundred agencies and several hundred realtors, plus more than that on the rest of the Cape. All MLS listings are added to the internet by the National Association of Realtors through realtor.com, and repeated many times over through individual and agency websites

Different Listing Agreements.
Listing agreements are legally binding contracts between home sellers and real estate brokers. The agreement is a one-page document with seven short sections that include beginning and end dates, a list price, brokers fee, description of the brokers scope of work, the brokers and sellers disclosures, and general conditions.

There are 3 kinds of listing agreements which are identical in form with one exception - the payment of commission as noted in the following brief descriptions:

Exclusive Listing Agreements require that the seller pay the broker a commission if the broker, the seller, or anyone procure a willing and able buyer for the property. This is the most standard of listing agreements.

Limited Exclusive Listing Agreements require that the seller pay the broker a commission if the broker, the seller, or anyone procure a willing and able buyer for the property except for a list of people that the seller includes with the listing sheet that he or she has promised to show the property for possible purchase. This list may include neighbors, friends, and relatives who have expressed interest in the property while the owner was contemplating putting it up for sale.

Exclusive Agency Listing Agreements require that the seller pay the broker a commission if the broker or anyone, except the seller, procure a willing and able buyer for the property. In this situation, the seller retains the right to sell his own property even while listing it with a realtor and gaining the advantage (over other For Sale By Owners) by having the home exposed to hundreds of real estate agencies in the MLS and thousands of potential buyers on the internet.

A fourth kind is a verbal agreement called an Open Listing between a seller and any number of realtors for the sale of his or her property. It is the most common way that smaller builders sell new homes. There is no paper listing, only a verball agreement to pay a certain commission to the realtor who sells his new home. Homeowners also employ this method, but it lacks the success rate of an exclusive agreement.

NOTES: Real estate forms are periodically modified. Those described here define the variety available and will be identified at the top of the agreement. dfk


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