What Is a Listing Agreement and What Should New York Sellers Know Before Signing?

Before your home goes on the market, you’ll sign a listing agreement – a contract between you as the seller and the listing brokerage that governs the terms of your working relationship. Most sellers sign it without reading it carefully. Here is what the agreement contains and what to pay attention to.

What the Listing Agreement Covers

Listing price. The agreed asking price at which the home will be listed. This can be changed during the listing period by mutual agreement, but the initial price is specified in the contract.

Commission. The total brokerage compensation you agree to pay, expressed as a percentage of the sale price. The agreement specifies what happens if no buyer’s agent is involved, and how the compensation is structured given the post-NAR settlement landscape.

Listing period. The duration of the agreement – typically 3 to 6 months. At the end of the listing period, the agreement expires unless renewed. If the home hasn’t sold, you can relist with the same agent, switch agents, or take the home off the market.

Exclusive right to sell. Most listing agreements are exclusive right-to-sell agreements – meaning the brokerage earns the commission if the home sells during the listing period, regardless of who found the buyer. Even if you find the buyer yourself, the brokerage is owed the commission. This is the standard agreement type and is reasonable given the marketing investment the brokerage makes.

Marketing obligations. Some agreements specify what marketing the brokerage will provide – MLS listing, photography, digital advertising, open houses. Others are vague. Know what you’re getting.

Protection period. A clause that extends the commission obligation for a specified period after the listing expires, for buyers who were introduced to the property during the listing term. This prevents sellers from canceling a listing and then selling directly to a buyer the agent found, to avoid paying commission.

What to Negotiate Before Signing

The listing period. If you’re uncertain about an agent, a shorter listing period – 60 to 90 days rather than 6 months – reduces your commitment while giving the agent sufficient time to demonstrate results.

Marketing specifications. If professional photography, video, or specific advertising are important to you, ask for them to be specified in the agreement rather than left to discretion.

The commission rate. Commission is negotiable. Whether and how much room there is to negotiate depends on the market, the agent, and the price point. An experienced agent with a strong track record has more justification for their standard rate than an inexperienced agent who offers to work for less.

The protection period length. Standard protection periods range from 30 to 90 days. This is negotiable.

I walk every seller through the listing agreement in full before signing and make sure every term is understood and fair. Call me at (321) 447-4259 or visit movewithricky.com.

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Rakesh (Ricky) Khanna | Licensed Real Estate Salesperson
Better Homes and Gardens Real Estate Realty Connect
Call or text: (321) 447-4259 | movewithricky.com