When you’re listing your house on the market, there are quite a few different terms that you have to learn about.
If you go in to sign a contract with a realtor, there are a few things on that contract that you may not be sure of. It’s only natural to become confused about the jargon that’s tossed around among real estate agents, especially when you aren’t educated on what’s going on.
So let’s talk about what “right to sell” means, how it’s relevant to your home sale, and how to exercise and reserve that right when dealing with real estate agents.
So What Is Your Right to Sell?
First, we need to figure out just what your right to sell is.
Your right, as a homeowner, is to sell your house. That, you probably already knew.
However, when you add a third party into the equation (like a real estate agent), it is possible for those waters to become muddy. Obviously, your real estate agent’s job is to try to help you sell your house.
But they are there to make money, so there can be some slippery slopes when it comes to your “right to sell” with real estate agents involved.
Beware of “Exclusive Right to Sell” Clauses in Real Estate Agreements
Some real estate agents have an “exclusive right to sell” clause written into their contracts. What does this mean?
This means that they have the exclusive right to sell. Even if you end up finding a buyer on your own, they will make a commission off of that sale, since you signed over that right to your real estate agent.
As you can see, there is a lot of incentive for a real estate agent to want to have this clause in their contract. But it may not be what’s best for you.
Can You Negotiate This Clause?
If you notice this clause in the contract, you probably want to not sign off on it. After all, if you do end up finding a buyer on your own, then you don’t want to have to pay a real estate agent for not getting the buyer for you.
Luckily, you do have the option to try to negotiate this clause with your real estate agent. If you feel pressured to sign away those rights, you shouldn’t. It’s always okay to ask if the clause can be changed. If they don’t want to work it out with you, it may be time to move on and find an agent that’s willing to work on your terms.
When it comes to selling your house through a real estate agent, you do have a few options that don’t require you to sign away an exclusive right to sell. These are a better option for most sellers, as they allow more freedom and wiggle room when selling your house.
Exclusive Agency Listing
An exclusive agency listing agreement is a win-win situation. This clause states that you are signing with one real estate agent who will work to find you a buyer. If you find a buyer yourself first, you won’t have to pay them a commission.
Unfortunately, this may mean that your real estate agent won’t prioritize your property over those they have signed an exclusive right to sell contract with.
Know Your Rights and Use Them
When it comes to your right to sell, it’s important to do your research before you go into a meeting with a real estate agent.
This can save you some money in the long run and ensure that you’re entering a contract that you feel confident in.