Listing contract

A listing contract is a contract to list some real estate by a real estate agency (or brokerage) as being offered for sale at a given listing price. It is a contract which is agreed to and signed by a real estate agent/broker and the owner(s) of the property (real estate) who want(s) to sell it. The contract is often referred to as a listing agreement. Upon listing the property, the real estate agency tries to get (or find) a buyer for the property. In consideration of the brokerage successfully finding a satisfactory buyer for the property, a real estate broker anticipates receiving a commission (fee) for the service the brokerage provided.

Contents
* 1 Commission
* 2 Listing price
* 3 Expiration date
* 4 Types of listing contracts

Commission

Although the terms of the contract could vary, usually the payment of a commission to the brokerage is contingent upon:

* the successful negotiation of a purchase contract between a satisfactory buyer and seller and the subsequent ability and willingness of the buyer to close the deal, or

* finding a satisfactory buyer who is ready, willing, and able to pay the full listing price (or more) for the real estate for sale without any contingencies.

If the seller refuses to sell the real estate when one of the above two conditions applies, it is typically considered that the real estate agent has done his job of finding a satisfactory buyer and the seller must still pay the commission, although the details are determined by the listing contract. If the buyer cannot or does not buy the property, then the brokerage has not yet done its job and the seller does not yet owe the broker a commission.

The commission is usually a percentage of the sales price of the property ranging from perhaps a couple percent to about 10%, but usually in the range of about 3 - 7% for houses. The commission could also be a flat fee or some combination of flat fee and percentage, particularly in the case of lower-priced properties, vacant lots, or other unusual real estate. Again, the details are typically determined by the listing contract. The commission is paid by the seller to the listing real estate broker, who will compensate his/her listing agent and any other brokers/agents from this commission by a separate agreement with them.

Listing price

The listing contract typically also includes a listing price for the property and an expiration date by which the contract expires (ends). However, the property may be sold at a lower or higher price. If the seller agrees to and successfully sells (i. e. closes the deal) the property at a lower price, the seller must still pay the broker a commission, although a percentage at a lower price would result in a proportionally lower commission. If the seller does not accept a price lower than the listing price, then the broker will have to wait until a satisfactory sale to earn the commission. If the price obtained is higher than the listing price and the commission is based on percentage, then the broker is paid a proportionally higher commission. Furthermore as mentioned before, if the price offered is equal to or higher than the listing price by a ready, willing, and able buyer (without contingencies), then the broker has earned a commission and the seller must pay it regardless of whether the sellers sells the property. In practice, if multiple offers are presented, the seller may accept whichever offer is most suitable to him/her even if the price is not highest, and the percentage commission will paid according to the accepted price. The seller, often in concurrence with the real estate agent, may choose to accept an offer that is lower than the highest for various reasons, such as terms or contingencies in the purchase contract offered or perceived differences in financial qualification of the competing buyers.

Typically, the real estate agent has the experience and data to determine a suitable listing price for the seller's property and will recommend a listing price to the seller. The seller can accept, reject, or try to negotiate a different listing price for the contract. If the seller's price is unrealistically high and the agent cannot convince the seller otherwise, the agent can decline to list the property.

Expiration date

Listing a property commonly incurs certain expenses for the listing broker and takes some time and effort for the listing salesperson. To make it worthwhile for them, they want a certain minimum listing time period to have a good chance of selling the property. However, the listing contract must have an expiration date. A typical listing period is often from 3 or 4 months to 6 months until the listing expires. If the property is not sold or under a purchase contract by then, the seller may decide to re-list the property, perhaps with a different listing price, with the same or a different broker or agent, or not list it at all. The listing of the property can start at a date later than the date the listing contract is signed to allow the seller time to prepare the property for showing or sale.

Types of listing contracts

There can be several types of listing contracts:

* Exclusive right to sell - The seller must pay the agency (brokerage) a commission if, by the expiration date in the listing contract, the real estate is sold, regardless of whether the buyer is gotten through the agency or not. Even if the seller finds the buyer him/herself, a commission is still owed to the agency. Furthermore, the seller cannot list the property with any other agency until the listing expires with the property unsold.

* Exclusive Agency - The seller can only list the property with one agency (brokerage) until that listing expires with the property unsold. The seller must pay the agency a commission if the real estate is sold to a buyer gotten through the agency. If the seller finds the buyer him/herself, the seller does not have to pay the agency a commission.

* Open Agency - A seller can list the property with more than one agency (brokerage) in open agency listings. The seller must pay a commission to that agency which finds the buyer that the real estate is sold to. If the seller finds the buyer him/herself, the seller does not have to pay any agency a commission.

 

 

 

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Gulf Shores and Orange Beach Area Info

Climate
The Gulf Coast Area has a mild climate with an average annual temperature of 67.4 degrees. The average temperature in January is 51.4 degrees. The average temperature in July is 81.8 degrees. The average annual precipitation is 67 inches, and the growing season is 292 days.

Education
Education is a fundamental block in building a bright future. The Gulf Coast Area opened a brand new high school during 1999 in Gulf Shores (ph. 251.968.4747). The area has two elementary schools; they are Gulf Shores Elementary (ph. 251.968.7375) and Orange Beach Elementary (ph. 251.981.5662). Gulf Shores Middle School (ph. 251.968.8719) offers an excellent curriculum in preparation for high school. All public schools are part of the Baldwin County school system. If you are interested in private education, you also have the option of Bayside Academy (ph. 251.955.5211), which includes age 3yrs – Grade 4.

Healthcare
The nearest hospital is South Baldwin Regional Medical Center (ph. 800.580.3627) located in Foley. South Baldwin Medical Center offers 24-hour emergency services (ph. 251.952.3400). Numerous medical professionals practice in the area providing both family practice and specialized care.

Airports
Corporate and Private air service is available in Gulf Shores from the Jack Edwards Municipal Airport, with a full Instrument Landing System and the longest paved runway being 7000 feet. The closest commercial air service is available in Pensacola, roughly 30 miles away, at the Pensacola Regional Airport (ph. 850.435.1746). Major carriers serving the airport are Continental, US Airways, Delta, Northwest, and American. Other commercial airports are located in Mobile (ph. 251.633.0313) and Gulf Port, Mississippi (ph. 228.863.5951).

Shopping
The area offers many shops ranging from casual apparel and beachwear to upscale fashion and specialty boutiques. If you are a bargain hunter, you can find 120 factory outlet stores in Foley.

Parks and Recreation
The nearest state park is the Gulf State Park (ph. 251.948.7275). The 6,000-acre park area offers campsites, picnic areas, 18-hole golf course, 825 foot fishing pier, 144 room hotel and convention center. Other parks in the area include Bon Secour Wildlife Refuge (ph. 251.540.7720), Meyer Park (ph. 251.968.4420), Johnnie Sims Park and Kids Park (ph. 251.968.4420), and Wade Ward Nature Park (ph. 251.968.4420).

State/Local Income Tax
For detailed information about Alabama income tax, contact the Alabama Department of Revenue, Individual and Corporate Tax Division (ph. 251.242.1000). In most instances, local governments in Alabama do not levy city, town, or county income taxes.

Property Taxes
Property (Ad Valorem) taxes are taxes on real business and/or personal property. “Ad Valorem” means “according to value”. For details, call the Revenue Commissioner’s office (ph. 251.943.5061, ext. 2840).