Once you've located the perfect agent to sell your home, you will be signing a contract. This agreement contains several important provisions, and it's vital that you understand what everything means. Learn more about the contract by reading below.
The Real Estate Agent's Commission
This part of the contract specifies how much of the home's sale price goes to the agent. However, it's important to note that the agent seldom retains the full amount of a commission. They often pay their broker a fee and then there is the cost of using an office, transportation costs, taxes, and more. Once the home is sold, the commission is deducted and paid at the closing table. Commissions are a certain percentage of the selling price.
Duties of the Agent
What does the commission buy? Real estate agents begin working on your sale from the moment you make contact with them. They will usually tour your home and make recommendations for improvements such as clearing out rooms, carpet cleaning, and more. Then they perform research so they can suggest an appropriate price for your home. This is known as comps and involves comparing your home to others in the area that are similar and have recently sold. It's important to value the agent's opinion to decide on the final selling price. If they are experienced agents and have been in the area for some time, they won't steer you wrong.
Then comes the marketing tasks like open house events, photographing and listing your home on the internet, phoning contacts about your home, and more. Finally, the agent will present to you all offers on the home and advise you on how to move on to those that interest you.
Other Contract Details
The above two provisions are the most important, but sellers also need to pay attention to the time situation. In most cases, contracts are valid for a set period of time and then you are free to use other agents. Another issue you might want to discuss and include in the contract is communication preferences. It can be awkward to discover that you and your agent have different expectations when it comes to how often contact is made and the method to do so. If you prefer to be updated every few days via text, make that known to the agent.
These contracts are often simple to understand, but mistakes could cause delays in getting your home sold. Ask a real estate agent about contracts to find out more. Reach out to a local real estate agency to learn more.