ABA Family Legal Guide

Buying and Selling a Home

Meeting the Players

Selecting a Real Estate Agent to Sell Your Home

What terms in the listing agreement are negotiable?

While the general type of listing agreement may not be negotiable, the specific terms contained in the agreement can be negotiable. In addition to the amount of commission, a real estate agency should be willing to negotiate provisions on the following:

• The length of the contract. Many of the standard forms provide that the contract renews automatically. Many firms want a six-month listing. If you're in a hurry to sell your home, try to get a sixty-day or a ninety-day listing.
• When the commission is earned. For example, the seller might try to negotiate language stating that this will occur only when the seller and the buyer actually close the sale and transfer title, not when they sign the purchase agreement.
• Who will be responsible for the advertising expenses--the seller or the agency? Since the seller usually must pay these costs, even if there is no sale through the agency, you may want to limit or have approval over these costs.
• Payment for extra "processing" costs in addition to the commission.
• The length of the probation period. This is the length of time, usually thirty to ninety days after the expiration of the listing agreement, during which the real estate agent will still be due the commission under certain circumstances.