Home-selling services aren’t all standard, so check the contract
My brother and I both listed our homes recently and he’s getting different services than me from his real-estate salesperson. Aren’t they all standard?
Selling a home for most people is a rare occurrence and can be complicated, so hiring a real-estate salesperson to help you is a good first step to ensuring you have access to expert advice.
When you list your home, you typically sign a seller representation agreement, commonly known as a listing agreement. This agreement sets out the terms and conditions under which real-estate brokerage services are to be performed. It also contains the asking price for the home and any additional fees for the services to be provided, over and above the base commission rate.
All listing agreements have common elements, but there can be significant differences between contracts simply because each home is different and each seller is different. Some of these differences involve the level of service that the brokerage — through its salesperson — will provide to help you sell your home.
There are all kinds of services to consider.
For example, you may decide that the best way to showcase your home is by having a video shot of the interior and posting an aerial photograph of your property. You may also want to have a presale home inspection done to potentially speed up the sale process.
Your brother may not need a video, but wants his real-estate representative to hold a certain number of open houses over a set period of time — perhaps with specific security precautions — and have his home advertised in specific mediums, such as websites and real-estate publications.
These are all common marketing services that can be offered to clients and need to be agreed to in the seller representation agreement. Not all brokerages offer the same suite of services, so shopping around is an important step to finding the right brokerage and salesperson to represent you.
Since all agreements differ, the services you want and need may best be determined by having a conversation with your real-estate salesperson. Discuss how your property, given its unique characteristics, should be marketed and then decide on which marketing or other services you believe will be most effective.
Clarify the fees and costs related to these services and make sure all of the details of who pays for what service are included in the listing agreement before you sign it.
You should also be clear as to what your obligations are under the agreement and what your salesperson expects from you during the selling process.
It’s important to remember that a listing agreement is a legally binding contract between you and the salesperson’s brokerage. Therefore, make sure you understand and are happy with the contents of the agreement — including the services outlined in it — before you sign it. This is the best way to avoid misunderstandings between you and your salesperson or brokerage later on. Joseph Richer is registrar of the Real Estate Council of Ontario (RECO). He oversees and enforces all rules governing real-estate professionals in Ontario. Email questions to askjoe@reco.on.ca. Find more tips at reco.on.ca, follow on Twitter @RECOhelps or on YouTube at youtube.com/RECOhelps.
Not all brokerages offer the same suite of services, so shopping around is an important first step