Before you sign a listing agreement to sell your investment property, there are a few important questions you should be asking. Many owners focus on price and commission, but the details inside the listing agreement can have a major impact on how the sale unfolds and how protected you are along the way.
Understanding these terms ahead of time helps you avoid surprises and ensures you are comfortable with the relationship you are entering into. Below are the key questions to ask before signing a listing agreement, based directly on what we see come up most often in real transactions.
How long is the listing agreement?
One of the first questions to ask before signing a listing agreement is how long it lasts. Many owners overlook this entirely.
If you are unhappy with the broker or the way your property is being marketed, the length of the agreement matters. You do not want to be locked into a contract longer than necessary. In Pennsylvania, listing agreements are limited to one year or less. If a contract exceeds that timeframe, it is not permitted.
Make sure you understand the exact length of the agreement and confirm that it complies with state rules.
Is the agent experienced?
Another important consideration is experience. Ideally, you already know and trust the agent you are working with. But it is important to remember that the listing agreement is with the company, not the individual agent.
If the agent listed in the agreement leaves the firm or exits the industry, the contract remains in place with the brokerage. That means you should be confident not only in the agent, but also in the company behind them.
Ask questions about the firm’s experience selling properties like yours and how they would handle the transition if your primary contact changes.
How will your property be marketed?
Marketing is one of the most critical elements of selling real estate, yet it is often assumed rather than discussed.
Instead of assuming the broker will market the property a certain way, ask them directly. You should understand exactly what steps they will take to advertise the building and how they plan to reach qualified buyers.
This is one of the most important questions to ask before signing a listing agreement because the strength of the marketing strategy directly affects exposure, competition, and pricing.
What happens if you’re the one who finds a buyer?
Many listing agreements are exclusive, which means the brokerage is paid regardless of who finds the buyer. This often surprises owners after the fact.
If there are buyers you have already spoken with, exclusions can sometimes be written into the agreement. For example, you may want to exclude specific parties if they come back around later.
Before signing, make sure you understand whether the agreement is exclusive and how compensation works if you personally source a buyer.
What are you required to disclose?
Commercial properties, typically defined as five units or more, are not subject to the same disclosure rules as residential properties. However, that does not mean you can disclose nothing.
Across most states, sellers are expected to disclose major issues such as:
- known environmental contamination
- serious material defects
- zoning violations
Failing to disclose these items can expose you to legal risk later. Even if a sale closes, a buyer who discovers an undisclosed issue may pursue legal action. Understanding what must be disclosed is one of the most important questions to ask before signing a listing agreement.
What costs will you have to pay?
Commission is only part of the cost of selling commercial real estate. There are often additional expenses that catch sellers off guard.
Ask your broker for a cost sheet that outlines not only the commission, but also other potential costs associated with the transaction. Your broker should be able to clearly explain these items so there are no surprises at closing.
Is there an exclusion period after the listing ends?
Many listing agreements include an exclusion period after the contract expires. This typically means that if the broker showed the property to someone during the listing term and that person purchases the property later, the broker may still be entitled to compensation.
These clauses can become complicated and, at times, contentious. Make sure you understand whether an exclusion period exists, how long it lasts, and exactly who it applies to.
This is one of the most overlooked questions to ask before signing a listing agreement, yet it can have lasting implications even after the listing ends.
Final Thoughts
Signing a listing agreement is more than a formality. It sets the framework for how your property will be marketed, who represents you, and what obligations exist on both sides. Asking the right questions upfront helps you stay informed and protected throughout the process.
Many owners we work with appreciate having clarity around listing agreements before committing to a sale. If you are considering selling a multifamily property in Pennsylvania or Maryland, contact us to discuss a listing agreement and how to position your asset for a successful transaction.
