Why Short Contracts With Agents Are The Best Idea
Posted by eightyeightinc on January 21, 2008
I know that there are a lot of different ideas about how long an agent should list a house for. I personally like to do a three-month max listing agreement. I do three months because it keeps me working hard for the homeowner and makes me perform. Also, I understand that if I can’t sell it in three months it will end up costing me too much money to carry the listing.
I hate how some agents will ask for six-twelve month listings and just let them sit hoping that a buyer or buyer’s agent will come along. No wonder sellers question what they need an agent for!
Advice for sellers: you need to limit the amount of control that your agent has on how long you list with them. Sometimes you make mistakes on choosing the right agent and if you are stuck with them for six months that could spell disaster. Tell the agent that you are willing to do a three-month listing and then revaluate things after that. If they tell you that six months is company policy, simply thank them for stopping by and send them on their way. You need to find another agent.
A lot of brokers will push their agents to make six-month listing agreements. Don’t fall into their trap as it will tie up your property for too long.
In addition to shorter listings terms, I give the sellers or myself the opportunity to get out of the contract with a no questions asked policy. I also offer sellers the opportunity to sell themselves and owe me nothing if they can do it. This gives my clients the freedom to get rid of me if they don’t like how I am doing. I also have the same right if I don’t like what the seller is doing I can cancel my contract.
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agentandrew said
I like your approach with short contracts. But what happens is your average marketing time in your market it more than 90 days? I suppose you could just relist. Good article. Thanks for sharing.
Andrew
agentandrew said
Oh “But what happens IF your average marketing time in the market IS more than 90 days?” That is what it should have said.
eightyeightinc said
As an agent it also gives you the opportunity to re evaulate the home and make sure it is priced right and in good shape. This will put pressure on your sellers to step it up if needed.
If the home is in good condition, priced correctly and has the right marketing there is no reason why it won’t sell in 90 days.
These days you have to be creative on your marketing to draw buyers to your listings. If you do the same old stuff you will get the same old results.