If you’re planning to sell your property in Hawaii, you will most likely hire a real estate agent in Hawaii to assist you throughout the process. Both parties will have to sign an agreement that outlines the details of the listing arrangement and your property; however, make sure you read all the fine print of the agreement.
Moreover, before you sign the contract with a blind eye and bind yourself to the agent, remember that you can negotiate the contract. Just read the document with utmost care and attention, and you may save yourself from regretting it in the future.
Below, we have listed the top three things to know before signing a listing agreement!
1. Commission: Real estate agents usually ask for five to seven per cent of the sale amount.
You should talk about the payment timeline of the commission. Inquire if you will have to pay the commission only when the deal is finalized or when the agent finds you a buyer ready to offer the asked price. You may also be obliged to pay the commission if you accept the offer, but the deal falls through midway. Generally, you will only be obligated to pay at closing, but it’s worth checking carefully.
2. Types of listing agreements: Your real estate agent will most likely ask for the exclusive right to sell your property as it will give them quite the leverage in terms of commission and closing rights. However, you can retain the right to sell your property without paying any commission if you wish to. Just ensure that it is clearly mentioned in the agreement and that you and the agent are on the same page. Keep in mind that your agent will be investing in photos, advertising, and
open house expenses, and top agents are unlikely to accept anything but an exclusive right to sell listing
3. Duration: Generally, the listing agreement will last for one You may want a shorter commitment so that you can easily walk away if you are not happy with your real estate agent. It also puts added pressure on the agent to sell your property as soon as possible.
A real estate agent in Hawaii might want an agreement with a longer duration as they put in a lot of time and effort in getting your property ready for listing and selling. They would not want to lose it right when the buyers are showing interest in it.
Therefore, you may have to negotiate and compromise on this aspect, but just remember not to sign the agreement unless you are comfortable with the duration mentioned.
About Judy Howard
Now that you know the key things before signing a listing agreement, you should look for a reliable real estate agent in Hawaii who can make the selling process easier. Judy Howard is a Big Island real estate expert and licensed attorney who abides by equal housing opportunity laws. We handle every glitch and problem with equanimity, clarity, and resourcefulness. Our clients choose us because we have an impeccable understanding of the process and an appreciation for what buyers and sellers want from us. Moreover, Judy keeps her roles as realtor and lawyer separate to avoid possible conflicts of interest. For more information, call (808) 896-5786, write an email to [email protected], or fill out our contact form.