By DAVID HOUCK
Qualifying Broker
Atomic Realty, LLC
Generally, there are three main contracts a buyer and seller may use during a real estate transaction:
- Listing Agreement – the contract between the seller and the listing brokerage to market and manage the sale
- Buyer’s Brokerage Agreement
- Purchase Agreement
All terms in these contracts are negotiable, and buyers and sellers should carefully review and negotiate them before signing.
The Listing Agreement
The listing agreement outlines the services the broker will provide, the commission the seller agrees to pay the listing brokerage, and the duration of the listing. Every term in this agreement is negotiable.
Seller-Paid Commissions
Sellers should negotiate the commission they are willing to pay the listing brokerage before signing a listing agreement. Once signed, the commission terms are binding.
If one brokerage requires a commission that feels too high, thank them and continue shopping. Other brokers may be willing to provide the same services at a lower cost.
Broker’s List of Services
Sellers should request a written list of services the listing broker will provide. If a service is not included in the agreement, do not expect the broker to perform it.
A clearly defined list of services and a timeline help set transparent expectations regarding what will be done and when.
What Listing Brokers Can’t—and Shouldn’t Do
While brokers are often happy to check on your property, allow inspectors access, or meet contractors if you are out of town, they are generally not licensed or insured to perform services such as cleaning, staging, snow removal, landscaping, handyman work, or providing legal opinions.
These tasks should be handled by licensed and insured professionals—not your real estate broker. For example, if a broker is shoveling your driveway and slips and falls, your insurance may not cover the injury. Sellers should avoid asking brokers to perform tasks outside their scope of competence, licensing, or insurance coverage.
The Duration of Your Listing
Most listing agreements run between three and twelve months, depending on the property type, price, and condition. Brokers typically require a reasonable listing period to have a fair opportunity to sell the property.
Specialized properties may take longer to sell. Overpriced homes often remain on the market until the seller adjusts expectations, and properties in poor condition may attract fewer buyers willing to take on extensive projects.
If Your Listed Home Hasn’t Sold
Although not typically written into the listing agreement, if your home has not gone under contract within three weeks, the market is often signaling that it is priced too high under current conditions.
- Few showings: A significant price reduction may be necessary, as buyers and their agents are not finding the price compelling enough to visit the property.
- Many showings but no offers: A small price reduction may help. Buyers are interested, but something is holding them back, and a modest adjustment may encourage an offer.
Working Toward More Affordable Real Estate Transactions
In today’s market of high interest rates and rising home prices, both buyers and sellers benefit from negotiated cost-conscious transactions. Negotiating contract terms can lower costs, increase sellers’ net proceeds, and improve buyers’ access to housing.
About David Houck
David Houck is the Qualifying Broker of Atomic Realty. With over 40 years of real estate experience and a background in mathematics, physics, and law, David brings deep expertise and integrity to every transaction. He also serves on the New Mexico Association of Realtors Forms Committee, helping to create clear, consumer-friendly real estate contracts. If you have questions about timing or strategy, feel free to call or email Kate or me. You can also find us, these articles, and more helpful information—at www.AtomicRealty.net.