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Real Estate Fight Club

26
Oct 2020

Episode 57: How Long is Your Listing Contract?

October 26, 2020

In Episode 57 of the Toe-2-Toe Podcast, hosts Jenn Murtland and Monica Weakley duke it out  over how many months your listing contract should be. 30 days, 90 days, 6 months? This one might surprise you!

Episode Highlights: 

  • Monica is firm on her stance of a 90-day listing contract, regardless of the amount of inventory.
  • People’s opinions of the real estate agent changes based on how long the sign is in the yard.
  • Jenn’s preference is 30 days for the same reasons that Monica’s preference is 90 days.
  • There was a time when Jenn first started that she assumed all contracts were a year long.
  • Agents should take the average days on market into consideration when proposing a listing contract.
  • 90 days in a buyers’ market and 30 days in a sellers’ market sounds good to Monica.
  • Sellers like the confidence of a short listing contract as compared to an agent that needs a long time to sell their house.
  • Jenn thinks it’s important to look at the average days on market and take what makes sense.
  • Monica believes that limiting the listing contract offers confidence and a break from a possibly mismatched relationship.
  • Jenn and Monica actually agree with each other on this one.
  • Tiebreaker, Rachael Real, believes that listing contracts should be no more than 6 months long.
  • It’s important to have an extension that takes you through the closing and a longer contract helps with that.
  • Auditing by the state will make your life a living hell, so, you are better off making sure you have room for an extension.
  • Stay completely transparent with the client about what’s going on at that point of the process.
  • Rachael thinks, in theory, 90 days is enough time to sell the house.

3 Key Points:

  1. If an agent can’t sell a house in 90 days, then it’s probably a bad match with the client.
  2. People tend to not show their true colors until after the contract is signed, so in order to be careful, the contract should be limited.
  3. Shorter contracts show confidence from the agent in their ability to sell the house in a shorter amount of time.

Resources Mentioned: