Tennessee Listing Agreement
If you`re looking to sell your Tennessee property, you`ll need to sign a listing agreement with your chosen real estate agent. This legal document outlines the terms of your agreement with your agent and lays out the framework for the sale of your home. In this article, we`ll take a closer look at Tennessee listing agreements, what they are, and what you need to know before signing one.
What is a Listing Agreement?
A listing agreement is a legal contract between you and your real estate agent. It outlines the terms and conditions of the sale of your home and sets out what your agent will do to help you sell it. The agreement is typically valid for a set period, usually between three and six months, during which your agent will work to sell your property.
Types of Listing Agreements
There are three main types of listing agreements in Tennessee: exclusive right to sell, exclusive agency, and open listing. Let`s take a closer look at what each of these involves.
1. Exclusive Right to Sell Listing Agreement
An exclusive right to sell agreement is the most common type of listing agreement in Tennessee. It gives your agent the exclusive right to sell your property and earn a commission, no matter who brings in the buyer. This type of agreement offers the most protection for your agent and is often the most effective way to sell your property.
2. Exclusive Agency Listing Agreement
An exclusive agency agreement gives your agent the exclusive right to sell your property, but you retain the right to sell it yourself. If you sell the property, you don`t owe your agent a commission. However, if your agent brings in the buyer, they`ll earn a commission.
3. Open Listing Agreement
An open listing agreement allows you to work with multiple agents and sell your property to anyone, including yourself. You`re only obligated to pay a commission to the agent who brings in the buyer.
What to Look for in a Listing Agreement
Before you sign a listing agreement, it`s important to understand what you`re agreeing to. Here are a few things to look out for:
1. Commission Rate: The commission rate is typically 5-6% of the sale price, but it can vary. Make sure you understand the commission rate and how it`s calculated.
2. Length of the Agreement: The length of the agreement is typically three to six months. Make sure you`re comfortable with the length of time your property will be listed.
3. Termination Clause: The termination clause outlines the circumstances under which you can terminate the agreement. Make sure you understand the clause and what it means for you.
4. Marketing Plan: Your agent should provide a marketing plan that outlines how they plan to sell your property. Make sure you`re comfortable with their plan before you sign the agreement.
Signing a listing agreement is an important step in selling your Tennessee property. Be sure to choose an agent you trust and understand the terms of the agreement before signing. With the right agent and the right agreement, you`ll be well on your way to a successful sale.