Seller Guide: What Is A Listing Agreement?

What Is a Listing Agreement?

A listing agreement is a written contract between you and your real estate agent. It gives your agent permission to sell your home. It explains the terms of your agreement and what each party is expected to do. The listing agreement protects both you and your agent by setting clear rules.

Once signed, your agent can market the property, schedule showings, and negotiate on your behalf. You agree to pay them a commission if the home sells during the term. Make sure you read everything before you sign. Ask questions if anything is unclear.

What Are the Types of Listing Agreements?

1. Exclusive Right-to-Sell Agreement

The most common type is the exclusive right-to-sell agreement. Your agent earns a commission no matter who brings the buyer. This type gives your agent the strongest reason to invest in marketing your home.

2. Exclusive Agency Listing

An exclusive agency agreement means your agent still represents you, but if you find your own buyer, you don’t pay them a commission. This may sound better, but many agents won’t spend as much time or money on a home under this agreement.

3. Open Listing

An open listing allows you to work with multiple agents. You only pay the one who brings the buyer. Most agents avoid open listings because there’s no guarantee of earning a commission. These homes often sit with little activity.

What Are the Key Components of a Listing Agreement?

Start by looking at the length of the agreement. Most last 90 to 180 days. Make sure it fits your selling timeline. If your market is slower, you may need more time.

Check the listing price. You and your agent should set this based on local market data. If you aim too high, your home may not attract offers. Your agent can help guide you, but the final decision is yours.

Look at the commission. Most sellers pay a percentage of the sale price, often split between the buyer’s and seller’s agents. This amount is negotiable. Ask your agent to explain what’s included in their services.

Review how the home will be marketed. Common services include professional photography, listing on the MLS, open houses, and online ads. Your agent should have a plan to get buyers through the door.

Pay attention to what happens if the home doesn’t sell. Some agreements include a clause that still gives your agent a commission if a buyer they introduced comes back later. This is called a protection period.

What Are Common Questions from Sellers?

Can you cancel a listing agreement? That depends on the contract. Some brokers allow cancellation anytime, while others require notice or charge a fee. Always ask before signing.

Is the commission rate fixed? No. You can negotiate it. Some agents may reduce their rate if you plan to buy with them too. Make sure you understand what you’re paying for.

What if the home doesn’t sell? You’re free to sign with a different agent after the listing expires. Just be aware of any protection period that applies if a previous buyer returns.

What services should your agent provide? A good agent should take professional photos, market the home across platforms, host showings, and communicate with you regularly. Ask for their plan before committing.

Should you list your home with the first agent you meet? Not always. Interview a few agents. Ask how many homes they’ve sold, how they price listings, and how they handle offers. Choose someone who understands your market and communicates well.

Do you have to accept an offer once it's made? No. You can reject, counter, or accept any offer. Your agent will present all offers and help you decide what’s best. You stay in control throughout the process.

A listing agreement sets the foundation for your home sale. Understand it before you sign. The right agreement with the right agent can lead to a smoother, faster sale.