The Interview
Home Sellers Guide
Frequently Asked Questions
What is an Exclusive Right to Sell Agreement?
An Exclusive Right to Sell Agreement is a contract between a home seller and a Realtor, granting the agent the exclusive right to market and sell the property. This agreement ensures that the agent will work diligently to sell your home.
Why should I sign an Exclusive Right to Sell Agreement?
Signing this agreement provides assurance that your Realtor will prioritize the sale of your property, utilizing their expertise in marketing, negotiating, and managing the entire selling process.
How is my Realtor compensated in an Exclusive Right to Sell Agreement?
The Realtor’s commission is usually a percentage of the sale price and is negotiated upfront. This fee is typically paid from the proceeds at closing. It’s important to discuss and agree upon the commission rate with your Realtor before signing the agreement.
Do I need to offer compensation to the buyer's agent?
Offering compensation to the buyer’s agent is common practice and can make your property more attractive to potential buyers. The specific amount is negotiable and will be discussed with your Realtor to determine the best strategy for selling your home.
What happens if I find a buyer on my own?
Typically, if you find a buyer on your own, the terms of the agreement still apply, and you may be responsible for paying the agreed-upon commission. It’s essential to clarify this aspect with your Realtor.
How long does an Exclusive Right to Sell Agreement last?
The duration of the agreement is specified in the contract and can vary. It usually lasts for several months but can be adjusted based on your needs and market conditions.
Can I negotiate the terms of the Exclusive Right to Sell Agreement?
Yes, many terms in the agreement are negotiable. You can discuss and modify aspects such as the duration of the agreement, the commission rate, and specific marketing strategies.
What is a protection period in the Exclusive Right to Sell Agreement?
A protection period is a time frame after the agreement expires during which the Realtor is still entitled to a commission if the property is sold to a buyer they procured. This protects the agent’s efforts and investment in marketing your home.
Can I work directly with the buyer's agent to sell my home?
While you can work directly with the buyer’s agent, remember that the buyer’s agent represents the buyer’s interests. This can lead to potential conflicts of interest and a lack of impartial advice. Having your own listing agent ensures that your interests are prioritized and you receive expert guidance throughout the transaction.
What is a subagent in a real estate transaction?
A subagent is a cooperating agent who shows your property to potential buyers but still represents your interests as the seller. This arrangement can increase your property’s exposure while ensuring your needs are prioritized throughout the transaction.
When You're Ready
Preparing The Home
Pre-listing Home Improvements
Services may include:
- Painting
- Electrical & plumbing repairs
- Roof repairs
- Pest control
- Landscaping
- Junk removal
- Cabinet refinishing
- Flooring updates
- Countertop replacements
- Backsplash installation
- Tile reglazing
- Wallpaper removal
- Repairs
- Wall removals and additions
- Cabinet installation
- New roof
- Kitchen remodels
- Bathroom remodels
- Basement/attic finishing
- Decks and fences
- Bathroom additions
- Electrical rerouting
- Flooring updates
- Flooring refinishing
- Deep cleaning
- Hardware swaps
- Staging
What's Your Home Worth?
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Receiving & Negotiating Offers
Completing the Close
Key Terms
Assessment of the property’s market value, for the purpose
of obtaining a mortgage and performed by a licensed appraiser.
Value placed upon property for property tax purposes by the tax collector.
Expenses incidental to a sale of real estate, such as loan fees, appraisal fees, and title insurance.
The statement which lists the financial settlement between Buyer and Seller, and the costs each must pay.
Certain criteria that have to be met in order to finalize the sale.
The percentage of an individual’s monthly gross income relative to the amount of debt owed.
A good faith deposit the buyer makes with an offer to show that you are serious about buying the property. In exchange, the seller agrees to stop marketing the property.
The buyer reviews the house just before closing to make sure everything is in the same condition and that all home inspection items are fixed.
An expert conducts a formal review of the property to find visible issues that need to be repaired. Buyers typically make their offers contingent on an inspection, but sellers can conduct a pre-offer inspection to appeal to buyers. The buyer may choose to do additional inspections like radon and a sewer scope.
A background check on the property and the seller to ensure there are
no outstanding debts or claims upon the property.
Advanced approval from a bank or other lending institution for a home mortgage.
Potential buyers provide an overall financial picture and mortgage brokers provide an estimate of what level of loan you will likely be pre-approved for.
Insurance to protect the buyer and lender against losses arising from disputes over the ownership of a property.
A fee paid to the local government to officially report a sale of a home; usually paid by the buyer.