SIGNING A LISTING AGREEMENT
When you choose Andrew Cherry or a member of his elite Seaside Spot team, you will most likely sign a listing agreement – a contract in which you agree to allow the Real Estate Professional to sell your home during a given period. The agreement states that you will pay the Real Estate Professional a fee when you sell your home. Most Real Estate Professionals are independent contractors who work for a company operated by a licensed real estate broker. (A salesman is licensed by the state to sell real estate through a broker. The broker is licensed by the State of Florida to sell real estate to others for a fee and employ salesmen and other brokers.)
The amount of compensation you pay a broker is negotiable, but the Real Estate Professional will generally follow the company’s policy regarding compensation. The amount of the fee will be spelled out in the listing agreement. Make sure you understand how the fee will be paid before signing.
Exclusive listing: Most Real Estate Professionals will ask for an exclusive right-to-sell listing. Listing exclusively means that you will owe the broker a commission regardless of who finds a buyer during the listing period. In other words, if you decide to sell the house to your cousin, your broker still gets a commission. One of the many advantages of this arrangement is that the listing broker becomes more motivated and spends additional advertising dollars in order to sell your home.
Theoretically, it’s possible that a Real Estate Professional from another company will locate your home through advertising created by Andrew Cherry and in order to make a commission from the sale, the outside buyer agent will find a buyer for your home. Many times your listing broker will agree to pay the cooperating broker a fee from the amount you pay the listing broker. Your listing broker, cooperates with other brokers who procure buyers interested in your property and offers to compensate the other brokers for procuring a buyer. Cooperating and compensating other brokers is discussed in the listing agreement you sign with the listing broker.
Length of listing: The listing agreement will specify how long you agree to list your house with a company. Andrew Cherry will probably suggest an average time that homes like yours are on the market. You want a period that’s long enough to motivate your Real Estate Professional to advertise your home and respond to buyers, yet short enough to allow you to change to a different company if you become unhappy with the Real Estate Professional’s service. Remember that the listing agreement is a contract. You should get a copy for your records. Your Real Estate Professional is bound to the terms just as you are. You can expect the Real Estate Professional to keep appropriate information confidential and effectively market your property. Andrew Cherry typically allows for enough time to advertisement to become effective, find a buyer, and close the deal. Market times vary depending on the season and each listing term may be different.
Co-listing: Many times, Andrew Cherry will co-list with another elite beach agency in order to take advantage of additional international advertising. When Andrew Cherry decides to co list, owners do not pay extra for the services and the two agencies divide the commission and the advertising cost.