Limited Listing Agreements

You can list properties for sale in many ways.

A savvy real estate sellers can either opt to undertake the entire process or hire a selling agent. When the seller contracts a real estate agent to sell his properties, he can opt for either full- or limited-service agreements.

Identification

A limited listing agreement is often defined as a low-cost, fixed-fee product, as opposed to real estate agents working on commission. Sometimes, there is a sliding fee scale depending on the selling price. Usually, the fee starts as a commission, say 1 percent of the selling price until a price ceiling is reached.

Function

All of these agreements entail listing properties on a Multiple Listing Service (MLS) or relevant real estate websites over a fixed period. A real estate agent fields inquiries, schedules viewings and forwards offers and counteroffers to the seller.

Full Service

Full service agreements tend to be exclusive in nature so the real estate agent earns her commission regardless of who sells the property. Full-service agents also assist in presenting a property for sale and may offer legal, escrow and other financial services.

References

• Money Instructor: Listing Your Home for Sale--Listing Agreements
• Searchlight Crusade: Listing Agreements, Exclusive Right to Sell Versus Exclusive Agency