When you list your home for sale with a realtor, how long is the contract period normally?

local homes for sale
by CIMMYT

Question by breadbox: When you list your home for sale with a realtor, how long is the contract period normally?
When you list your home for sale with a realtor, how long is the contract period normally? Explain how this works. Then if it sells, what % of the sale price does the realtor normally get?

Best answer:

Answer by Art
Normal is 6 months and the commission is 6%

What do you think? Answer below!

This entry was posted in Nutrition and tagged , , , , , , , , , , . Bookmark the permalink.

3 Responses to When you list your home for sale with a realtor, how long is the contract period normally?

  1. Mary P says:

    What is described in the answers as normal is always negotiable according to the law. If a Realtor both lists and sells a property, he is entitled to the whole negotiated commission, but he can’t pocket the whole thing, as there are many expenses taken out of it. If he lists it, and another Realtor sells it, the amount of the commission split for the selling agent is listed on the MLS (multiple listing service).

  2. acermill says:

    As a real estate broker, I will not take a listing contract for less than six month’s duration, in this economy. When I sign such a contract with a seller, I am required to provide advertising and exposure of the property to prospective buyers. Such promotion is costly, and I won’t take a short term contract, only to pay for advertising the property and then have the seller sell privately after the contract expires. I put a lot of effort into proper promotion of the property to potential buyers, and I expect to be compensated for such efforts and expenses.

    A typical commission rate is 6% of the final agreed upon sale price. Thus, if your house sells for $ 200,000, my fee is $ 12,000. While that may SEEM very costly, you need to understand the work and expenses agents incur in finding a buyer for your property.

  3. Realtoratheart says:

    Most depends on how things are handled in your local market. For example here in Minneapolis, the average length of time is 6 months and the fee is 6-7%. If your market is taking longer to sell homes, then give them that length of time. If you offer less, you will get less. It is a fact of life. I once spent six months promoting one single house because the homeowner paid me 10%! So consider what it is you want.