 WHAT IS THE RELATIONSHIP
BETWEEN SELLER or BUYER AND AGENT?
The relationship between seller and agent might best be described as a employer - employee relationship. The
seller is the employer and makes the rules, and the agent is the employee and is obliged to follow the
rules.
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HOW DOES THE AGENT AND BROKER
WORK TOGETHER TO SELL MY PROPERTY?
In
Michigan, all listings are the responsibility of the broker. The agent has a special working relationship with the
broker and typically receives a commission for securing the listing for the broker when the property is sold. The
agent may also receive a commission if they become the person who sells the property.
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WHAT IS A CO-OPERATIVE
SALE?
To co-operate is to allow
another competing real estate company to participate in the sale of your property. If another company sells the
property, then the listing broker typically pays that company a percentage of the total commission. At Heritage House
Realty PC, we encourage co-operative sales in hopes that it will help sell your property in a shorter period of
time.
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HOW LONG SHOULD IT TAKE TO
SELL MY PROPERTY?
When we list a property in our
marketing area, we can expect the property to take six to nine months to receive an offer. There are factors
that will cause this time frame to shorten or lengthen. These factors include the following: seller’s willingness to
accept terms; local, state, and national economic conditions; location; time of year listed; and most of all,
price!
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IS THERE MORE THAN ONE TYPE
OF LISTING?
There are three types of listing agreements used at Heritage
House Realty PC. They are as follows:
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| 1. Open Listing – where the sellers retain the right to list with as many companies as
they choose and pay a commission to only the company that sells the property. The seller also retains the right to
sell the property themselves and waive any commission. The open listing receives the least amount of attention and
effort from the real estate companies and usually is the least likely to be sold by a real estate
company. |
| 2. Exclusive Listing – where the sellers list with only one company, yet retain
the right to sell the property themselves and waive the commission. |
| 3. Exclusive Right To Sell
Listing – where the seller lists with one company and that company receives a commission upon closing of a
sale regardless who secures the buyer. This is the most attractive to the real estate company and is the most widely
used. The seller receives the real estate companies’ greatest effort and the property usually sells in the shortest
amount of time. |
HOW MUCH COMMISSION MUST WE
PAY?
The rule for the amount of
commission a real estate company will get paid is based on what a seller is willing to pay. The seller determines the
commission rate they are willing to pay and the real estate company determines if they are willing to work
for that amount. Typically the commission is a percentage of the final selling price. At Heritage House Realty
P.C. we are always willing to discuss commission percentages and explain what rate would be most beneficial to
you.
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HOW LONG MUST I LIST MY
PROPERTY FOR?
As with commission
rates, the seller determines the length of the listing. The real estate company would like to secure the listing long
enough to feel the reward of any advertising efforts, typically six to nine months. Usually it draws bad attention to
a property if the real estate sign changes too often, suggesting a poorly priced property. Be careful when you choose
a company, demand follow up, and make sure an effort is made to sell your property. If properly priced and marketed,
the property should sell in six to nine months if conditions are stable in the area.
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WHAT PRICE WILL YOU LIST MY PROPERTY AT?
Whatever price the seller tells us to list the property is the price we will use. If the price
is set so high that we feel the home stands little chance of selling, then we may refuse to accept the listing.
A over priced property will draw poor attention and will usually harm the seller’s future chance of selling the
property even if the price is lowered at a later date. At Heritage House Realty P.C. we are trained to use the most
accurate methods to determine the price your home is most likely to bring. We will recommend a listing price that we
feel will net you the highest results. |
HOW LONG CAN WE STAY AFTER WE
CLOSE ON THE HOUSE?
The offer to
purchase will usually include provisions for a time of occupancy after the day of closing. The seller must understand
that as of the day of closing, they no longer own the home. The buyer’s responsibility for payments, insurance, and
taxes begins at the time of closing and they usually want to be reimbursed for their expenses. Also, a buyer wants to
purchase the home in most cases, so they may reside there, and the longer the seller wants to stay, the less
attractive the property is to a potential buyer.
In the areas we serve, the typical time a seller asks to stay
on the property is less than 30 days from the day of closing. For this right, the seller is usually charged a
per day rate with 30 days in advance being held by the listing broker. Upon vacating the property, the buyer is paid
by the listing broker for the number of days the seller remained on the property and any balance is returned to the
seller. |
HOW WILL MY PROPERTY BE
ADVERTISED?
The best form of
advertisement in our area is the yard sign. The yard sign draws a potential buyer’s interest to the property as they
travel by. If a buyer is interested in a particular area, they usually will travel that area to see what is
available. If the sign is up, the potential buyer will know to call our offices and get more information on your
property. Once in our offices, a trained professional will highlight the benefits of your property and hopefully
secure an offer to purchase. Other conventional means of advertisement include display ads in the local newspapers,
brochures available at restaurants, etc., local shopper magazines, outdoor magazines, real estate advertising
magazines, and special promotions. Be sure to discuss the best form of advertising for marketing you property with
your listing agent.
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