When you list your home, your goal is to sell quickly for the highest price and best terms. However, sometimes, the sale doesn’t happen within the expected timeframe, and your listing contract expires. So, what does that mean for you, your agent, and your home sale? Let’s break it down.
What Does It Mean When Your Listing Expires?
When you sign a contract with a listing agent, it includes an expiration date, which is typically six months. If your home doesn’t sell by that date, the contract ends. At this point, your agent no longer officially represents you, and they stop actively marketing your property. Additionally, your home will be removed from the local multiple listing service (MLS) and other real estate marketing platforms.
What Happens If You Sell Right After the Contract Expires?
Many listing agreements include a “commission protection period” clause. This provision ensures that the agent is still entitled to their commission if the home is sold to a “registered buyer” within a specific timeframe after the contract ends. When the contract expires, the Realtor may submit a list of potential buyers who viewed or expressed interest in the property during the listing period. The agent is owed their commission if one of these buyers purchases the home during the specified protection period. To avoid any unexpected obligations, carefully review your agent’s contract and pay attention to the duration of this clause.
What Should You Do When Your Listing Expires?
After your listing expires, you face some important decisions. First, decide whether to relist your home or pull it off the market. If you choose to relist, consider changes that could improve your chances of selling—such as making renovations or adjusting the asking price. Also, evaluate whether you want to continue working with your current agent or hire someone new. By answering these questions, you’ll be better prepared to determine the next steps for a successful sale.
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