Sell My House Real Estate Agents and Commissions 2 — Questions and Answers
Question 1: What is an 'exclusive right to sell' listing agreement?
- An agreement where the agent only shows the home to exclusive buyers
- An agreement where the broker earns a commission regardless of who brings the buyer (Correct answer)
- An agreement limiting the sale to cash buyers only
- An agreement that prevents the home from being listed on the MLS
Correct answer: An agreement where the broker earns a commission regardless of who brings the buyer
In an exclusive right to sell agreement, the listing broker earns a commission no matter who finds the buyer — even if the seller finds one themselves.
Question 2: What is the MLS (Multiple Listing Service)?
- A government-run home price database
- A shared database where agents list properties so other agents can find and show them to buyers (Correct answer)
- A mortgage lender network
- A home inspection scheduling platform
Correct answer: A shared database where agents list properties so other agents can find and show them to buyers
The MLS is a cooperative database used by real estate agents to share property listings, dramatically increasing exposure to potential buyers.
Question 3: What should a seller look for when interviewing real estate agents?
- The agent who offers the highest suggested listing price
- Experience in the local market, a solid marketing plan, and client references (Correct answer)
- The agent with the lowest commission only
- The newest agent who will work the hardest to build their reputation
Correct answer: Experience in the local market, a solid marketing plan, and client references
Local market knowledge, a clear marketing strategy, and verifiable client references are the most reliable indicators of an effective listing agent.
Question 4: What is 'commission negotiation' in real estate?
- When the buyer asks the agent to lower their fee
- When a seller attempts to agree on a lower commission rate with the listing agent before signing (Correct answer)
- When two agents split a commission dispute in court
- When the government sets a maximum commission rate
Correct answer: When a seller attempts to agree on a lower commission rate with the listing agent before signing
Commission rates are not fixed by law and sellers can and should negotiate the rate with prospective listing agents before signing a listing agreement.
Question 5: What is a 'buyer's agent rebate'?
- Money the seller refunds to the buyer after closing
- When a buyer's agent returns a portion of their commission to the buyer (Correct answer)
- A tax credit for first-time homebuyers
- A fee buyers pay the agent for finding properties
Correct answer: When a buyer's agent returns a portion of their commission to the buyer
Some buyer's agents offer to rebate part of their commission to the buyer as an incentive, which can help the buyer cover closing costs.
Question 6: What does a 'comparative market analysis' (CMA) prepared by an agent show a seller?
- The agent's commission structure
- Recent sale prices of similar nearby homes to help determine the right listing price (Correct answer)
- The home's current mortgage payoff amount
- A list of needed repairs before listing
Correct answer: Recent sale prices of similar nearby homes to help determine the right listing price
A CMA analyzes recent sales of comparable homes in the same area to help the seller and agent arrive at a competitive and realistic listing price.
Sell My House Real Estate Agents and Commissions 2
What is an 'exclusive right to sell' listing agreement?