The following is an interpretation of the comments the author heard on material discussed on the Barry and Larry Radio show on Sept 29, 2018 and commentary from the author.
A real estate contract is a written agreement between the consumer and the real estate agent that formalizes the relationship of both parties in the transaction. Once signed by the consumer, it will authorize the agent to represent the buyer in the home purchase; or to list and advertise the seller’s house. For buyers, it is often referred to as “Buyer agency agreement” while for the sellers, it is called a “Listing agreement.” The document will explain the consumer’s rights and options; and also the agent’s responsibilities and compensation process.
This agreement is important because it serves as an assurance to the consumers that they will be exclusively represented by the agent. Thus, prioritizing the consumer’s interest only. It also secures consumers from dual agency, which happens when the agent represents both the buyer and the seller in the same transaction. In this case, a conflict of interest will occur because other homes may not be objectively shown by the agent compared with properties not listed within his firm.
The document will also discuss the duration of the contract. It is always negotiable, and consumers have the right to terminate the contract for any dissatisfaction with the agent.
What is the ideal length of a real estate contract?
Host: 100 days are the ideal maximum length of a real estate contract. Don’t sign contracts for more than 100 days or else consumers will be held captive. They won’t know how hard the agents will work especially if they don’t see them. The limited duration of 100 days is feasible for buyers, and for the sellers, it’ll be fine if it’s 60 days or less. Typically, homes will sell within days or weeks. Sellers just needs to assess the house at a price point that will be attractive in the market.
Listen to the full show here:
Author comment: It is always best to have the agent perform a comparative marketing analysis when selling a home. CMA provides an examination of similar properties and prices in the area that were sold recently. It’ll help the consumer determine the correct way to price the house for a fast and easy sale.
Host: Agents should have an updated comparative market analysis every two to three weeks. Just last week, 210 homes are added on the market with price ranges between $400-700k. Those homes have added 12 additional days of inventory on average. Sellers need to wait a little longer because of the competition. More competition usually drives prices down. It’s important that the agents stay on top of things.
Kathleen Chiras of SmartHomeSearch Network, who is a regular commentator on the show, stated: A comparative market analysis is always needed. The market determines the value of the property. If the market slows downs, consumers may adjust the expectations on the value of their home.
Host: Agents from the Buyer Agent Search Network are always updated on the market’s trends. Kathleen will match the consumer’s wants and needs with the best buyer or seller agents.
A boot camp seminar will be held on October 27, 2018, that will start from 10:30am-12:30pm. The cost is absolutely free and snacks, coffee and parking will be provided as well.
Host: The seminar will be a big help on how the consumer and the agent will work together in buying or selling a home. It’ll also teach consumers how they can take full control of the transaction and how to become a smart and savvy consumer.
Kathleen: The boot camp will help consumers get an agent that will advise them on the value of their property and the possibility of moving vs. renting or farm land and any other possibilities. It’ll also give them an in-depth information about buying and selling.
If interested, consumers can call 303-888-3788 to register or can send an email to firstname.lastname@example.org together with name and contact number.