A limited service agency agreement is a common arrangement used between real estate agents and their clients. The agreement sets out the specific services that the agent will provide, as well as outlining the responsibilities of the client.

The limited service agency agreement is a good option for clients who want to save money on real estate fees. With this type of agreement, clients only pay for the specific services they require, rather than a full-service package. This can result in significant savings for the client, while still receiving the essential services needed to facilitate the sale of their property.

The services provided under a limited service agreement can vary and are defined in the agreement. Some common services provided include:

1. Marketing and Advertising – Agents who offer limited service agreements may provide clients with marketing and advertising materials, such as professional photography, brochures, and online listings. These marketing materials can be used to promote the property and attract interested buyers.

2. Property Valuation – Agents will conduct a comparative market analysis to determine the value of the property. This is important because it helps the client to sell the property at a fair market price.

3. Buyer Qualification – Agents may provide assistance in pre-screening potential buyers to ensure that they are serious and financially capable of purchasing the property.

4. Contract Negotiations – Agents can assist with contract negotiations between the buyer and seller. They can help to ensure that all the necessary legal requirements are met during the sale process.

However, under a limited service agreement, the agent may not provide services such as home staging, property inspections or providing legal advice. Clients who require additional services should consider a full-service agreement.

To ensure that both the client and agent understand the scope of services provided, it is crucial to have a clear and concise limited service agency agreement. The contract should detail the specific services provided, timelines, and fees payable. The agreement should be written in plain language and should be reviewed and signed by both parties.

In summary, a limited service agency agreement can save clients thousands of dollars in real estate fees. However, clients should be aware that they will need to take a more active role in the sale of their property. With a clear understanding of the services provided, a limited service agreement can be an excellent option for clients looking to sell their property on a budget.