What is the primary purpose of a listing agreement?

The primary purpose of a listing agreement is to authorize a broker to sell a property. This legal document outlines the relationship between the property owner (seller) and the real estate broker. By entering into a listing agreement, the seller grants the broker the authority to market the property, negotiate on their behalf, and facilitate the sale process.

Through this agreement, the broker is given the responsibility to represent the seller's interests in the real estate transaction, ensuring that the property is effectively marketed to potential buyers. The listing agreement typically includes important details like the listing period, commission rates, and any terms or conditions pertinent to the sale. This formal arrangement helps to clarify expectations for both the seller and the broker, promoting a smoother transaction.

In contrast, the other options pertain to different aspects of real estate management or transactions that do not relate directly to the authorization of a broker for selling property. For instance, establishing a loan with a bank involves financing and does not concern the direct selling process. Setting terms for home inspections is an important part of the selling process, but it is not the primary purpose of a listing agreement. Appointing a property manager relates to the management of rental properties and does not involve the selling of real estate.