For how long is a listing contract valid?

Question

Usually for how long is a listing contract valid? That is, how long does a listing agent have the exclusive right to sell your house? Is that specified in the listing contract?

Vikram C. · Answer

Joel, this discussion is about what investors are doing, not what brokers would like.  We all understand that the ideal listing contract for a broker is an exclusive one that never expires and the client pays for all costs.

The compensation paid to the listing agent is a big part of the costs of a real investor's business.  So is the risk of being stuck with a lousy agent when you are starting out.  I think investors should negotiate their listing agreement terms such that they do not get locked in for too long, and they should also negotiate the agent commission such that it offers the agent a fair compensation given the investors' volumes.  Higher volume investors, naturally, will be able to negotiate these terms better.

Michael Quarles · Answer

Like mentioned the cancel date is on the agreement. However it also depends on the agreement used. In Californai there are 3 types. Only one requires a payment to the broker irrespective of who sells the property.

Stan Jackson · Answer

Vik,

I gave you a vote for the first sentence of your post only,lmao!

As I said in my original post on this subject, the length of the listing contract is neogtiable and can be cancelled at any time.

With that said, I suggest realtors/brokers to not look toward their listing agreement as some guaranteed time period to perform.

I've done listing agreements for 7 days, two months and even for one day because I knew what was involved with getting the property under contract.

Joel Owens · Answer

I am always amazed at what some broker and agents will agree to in a listing agreement.

If you stand for nothing you will fall for anything.

You have all different types of listing agreements in states from open listings to exclusive rights to sell.

I ONLY do exclusive rights to sell.I control the property and will not put time into a seller that wants my full attention but will not commit to me.

A business relationship that is fair to both parties is a two way street.

How long a property takes to sell will depend on the asset class and size of the deal.There are average times on the market until closing depending on this.

So to give a blanket 30,60 day period doesn't work for all listings.

For example some higher end homes take on average 9 to 12 months to sell.Putting these types of listings into magazines can run into the thousands.I have seen sellers tell the broker /agent to spend all this money only to change their minds and not sell etc.

In our contracts we have a protection period.So if I put in an exclusive agreement a 6 month listing period I will usually have a 60 day protection period.

This means if you list with another broker I am not protected but if you don't you will still owe me a commission.This keeps unruly sellers from me showing them a buyer and trying to let the listing period expire to avoid a commission and calling the buyer back.

In Georgia on commercial properties if I am a broker which I ma I can lien a property to stop a sale from happening.I have never had to do it but will enforce it in a heart beat.I provide a service and I will be paid.

I bring this up at listings presentations.I let them know what will happen if they try not to play fair and nice.I will give them the same respect they will give me but will not be taken advantage of.

On costs with the listing there are regular marketing items I do for each listing.If they want something expensive or special then what I do is this.

I tell them to pay for the service and keep the receipt to give to me.They have to be validated receipts with conformation of payments I can verify.The when it sells I will give a credit off my commission at closing.

This way if they pull the listing early and don't give me the chance to fully market it they will have skin in the game and it will be painful for them as well.

If it's just my money they wouldn't give a crap that I lost 5k.When it's their money they think long and hard about spending it.

I have friends that have sold luxury high end homes for over 20 years and this is how they do things to not lose money.The seller will also think harder about the list price because if they pay for this extra marketing and it is overpriced they may never see that money again.

I use this system and it works.You teach people how to treat you.If you want a profitable business you have to run it a certain way to protect the bottom line.

If the seller will not conform I say NEXT !

I am not trying to ruffle feathers here just give my thoughts on the subject.

Stan Jackson · Answer

In Florida, the listing agreement period is negotiable and cancellable at any time.

Nick Henson · Answer

The listing agreement expiration is on the contract. It is usually on line 1 ( Arizona & Florida contract ), line 19 ( on PA contract ). It can always be renewed depending on your agreement with your listing agent.

Jeremy Colonna · Answer

A listing contract without an expiration is not valid. I always allow mine to be cancelled. Just good business. Especially in this market where folks will just use your services to get a sale date postponed!

Vikram C. · Answer

I have been doing 90-day listings until now.  I might change that going forward to cancellable at any time.

Adrian Williams · Answer

Its always stipulated in the listing agreement , I always put my listings at six months but I have seen some agents who always do 90 days some go for a whole year generally the agent wants it to be as long as possible 1) for the obvious reason they have longer to sell 2) most have a sign with a rider with there name and contact info and you generate a ton of leads like that, Most agents try to gauge how comfortable the seller feels if the seller was stuck with a lousy agent for the last year who didn't get there house sold there might be a  good chance they wouldn't want such a long listing agreement with the next agent !

Goodluck  :)

Adrian Williams

Jon Holdman · Answer

Its in the contract.  Six months seems pretty typical, but its whatever you and the listing agent agree upon.

For how long is a listing contract valid?

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