If you've decided to put your home up for sale, one of the most important documents you'll need is the listing contract.
Your Realtor should be able to guide you through all of the important elements and get this document completed correctly for you. However, if you're FSBO or researching the real estate market to help you select the right Realtor, below are some key points that should be included in all listing contracts.
- Price. Probably the most important thing to include is the price you're asking for your house.. Asking a price that is too far above market will keep your house "for sale" for a longer period of time. If you ask too little for your home, you can put yourself in a position where you leave money on the table. To get a reasonable sense for your home's price, you'll want to look at comparable house sales in your neighborhood, understand their "price per square foot" and then compare their sale price to the price you're asking for on a per square foot basis. Realtor's call this analysis a Comparable Market Analysis (CMA) and most Houston realtors can provide this information for you. Click here for more home pricing tips.
- What's included in the sale. You'll want to decide what options and amenities are included in the home sale. This can include appliances such as a refrigerator, dishwasher, and washer and dryer. Any items that are attached to the house, such as certain light fixtures, are considered real property and are automatically assumed that they will be included. So if you have something such as a chandelier that you do not want included in the price of the sale, make sure that the listing contract excludes this item specificially.
- MLS Listing. The listing agreement should also include whether or not the house will be advertised on the Multiple Listing Service (MLS.) It is almost always in the seller’s best interest to advertise on this website, as that is how many homes are sold. This is also one of the advantages of using a professional Realtor, as for sale by owner listings are not included in this system.
Although listing contracts include many more details than these, these are the main points to concern yourself with when you are initially drawing up the contract. They provide a good foundation to move further with the listing and eventual sale of the property.
