Residential and Commercial Real Estate
The buying and selling of a home are probably some of the biggest financial transactions you will make in your lifetime. That being said, the real estate process involves a lot of different players, many different steps, and can be legally complicated. You cannot always depend on a realtor to advocate on your behalf and thoroughly explain the implications of each step of the buying and selling process.
Bannon and Associates, PC is here for all of your residential and commercial real estate needs. Knowledgeable real estate attorney Kevin M. Bannon will represent you in the handling of everything from the listing agreement, other contracts, title insurance, and closing documents. Real estate transactions are complicated and involve big financial transactions. Don’t leave something so important to chance.
In addition to his training as an attorney, Kevin M. Bannon is also a licensed builder and real estate broker in the state of Michigan.
How to Maximize your Interests in a Listing Agreement
A listing agreement is a contract that legally binds you to sell with a particular real estate agent for a specified amount of time and for a specific commission amount. Who you will work with while selling your house and how much they will be paid is a big decision. Make sure you understand the terms of the listing agreement before you commit to anything.
There are several different types of listing agreements you can choose from, including:
Exclusive right to sell. This grants the most authority to your realtor. He or she is the only one with the right to sell and market the property. No matter who buys the home or how they found out about the house, he or she will be paid the agreed-upon commission. This means that if you end up finding a buyer for the house, you will still have to pay the realtor the agreed-upon commission amount.
Exclusive agency. Your realtor is the only person who can sell and market the property. However, if you, the homeowner, finds the buyer, the agent will not earn the commission.
Open listing. You as the homeowner can open listings with many different real estate agents and pay commission to the agent who brings in a buyer to closing. If the seller finds the buyer, no commission is owed.
Each of these listing agreement types have certain benefits and restrictions. Some real estate brokers will only enter into exclusive listing agreements. Some will make minimal effort if required to enter into a certain type of listing agreement. Make sure you know all of the details involved. The listing agreement is just the first step in a potentially long relationship with your realtor. Make sure it sets a good tone for all of your future dealings.
Make sure to read through and review the listing agreement in its entirety. A significant listing agreement provision is the one specifying the commission the realtor will receive upon the houses sale. A usual real estate commission is about 6% of the sales price. What most people do not realize, however, is that this is completely negotiable. You can talk with potential realtors up front about commission and how long you would have to work exclusively with them, if at all. If an agent is bothered by you wanting to discuss commission, you probably do not want to work with them.
Also, be clear about what you are going to get out of paying your broker a commission. After all, a commission is payment for the realtor doing a job. Make sure you have specified tasks you expect the realtor to accomplish in order to ensure your home is sold for the best price and as quickly as possible. Some realtors will take professional photographs of your house and set up the house so it is staged in a way that would be most appealing to buyers. Other brokers might just put up a “for sale” yard sign. You can also talk to your realtor about what listing services they will advertise your house on and other extra marketing efforts they will make.
There are a lot of brokers out there and they can make a significant amount of money off of the sale of your house. Make sure that you are using this to negotiate optimum listing agreement terms.
Advocating for you in all Residential and Commercial Real Estate Dealings
Real estate transactions, both residential and commercial, are great opportunities to improve your financial situation. That being said, a poorly execute transaction can have severe and lasting consequences for your finances. Make sure you are getting the most out of your real estate dealings. Bannon and Associates, PC is here to represent your best interests in all property transactions. With a thorough understanding of real estate and unrivaled attention to detail, Attorney Kevin M. Bannon always makes sure that his clients are taken care of. Contact the Law Office of Bannon and Associates, PC today.