Selling a house involves a lot of paperwork, and the first few pages of the process will start with your real estate agent’s listing agreement. Often, this contract outlines an exclusive right-to-sell arrangement, serving to protect both seller and agent. So what does this mean for you, and what should you know before signing on the dotted line? To understand exactly what an exclusive right-to-sell agreement is and why it’s important for all parties involved, we pored over listing contracts, digging deep into the verbiage and the fine print, and we spoke with Chiquita Pittman, a Franklin Park, New Jersey-based top real estate agent with more than 28 years of experience. As defined by the National Association of Realtors, an exclusive right-to-sell listing agreement is a contract between the listing agent and the owner of the home, wherein the seller agrees to compensate the agent’s efforts regardless of who ultimately brings forth a buyer. In simpler terms, you’re agreeing to work exclusively with one agent for the purpose of selling your house within a defined period of time. Your agent, with the support of his or her managing broker, will be the one to list your property on the Multiple Listing Service (MLS) and work with you to develop a marketing strategy. Your agent will be the one who fields calls and emails from interested parties, coordinates showings, guides you through negotiations, and writes up the contracts. When you work with a top agent, you’ll have the added advantage of their comprehensive network of home inspectors, service providers, lenders, attorneys, and anyone else who may prove useful on the journey to the closing table. With all of these resources and marketing dollars about to be at your fingertips, it should come as no surprise that your exclusive right-to-sell agreement will also stipulate your listing agent’s commission rate, which is usually 2.5%-3%.What is an exclusive right-to-sell agreement?
