|
There
are several different types of listing contracts, but very
few of them are used. The "Exclusive Right to Sell"
is the most common, but there is also the "open listing,"
the "one-time show", and the "exclusive agency
listing".
By working with me you have options on how you can save
potentially thousands of dollars as part of an "exclusive
right to sell" agreement.
Open Listing
People trying to sell their home by owner who are also willing
to work with real estate agents mostly use the "open
listing". Basically, it gives a real estate agent the
right to bring buyers around to view your home. If their
client buys your home, the agent earns a predetermined fee
or commission. There is nothing exclusive about an open
listing and a home seller can give out such listings to
every agent who comes around.
For that reason, no agent is going to market your home or
put it in the Multiple Listing Service (MLS). If your home
fits the criteria for one of their clients, and it is convenient,
they may be willing to show it to their client. That is
all an "open listing" is good for.
One-Time Show
A "one-time show" is similar to an open listing
in many respects. It is most often used by real estate agents
who are showing a FSBO (for sale by owner) to a client.
The home seller signs the agreement, which identifies the
potential buyer and guarantees the agent a commission should
that buyer purchase the home. This prevents the buyer and
seller from negotiating directly later and trying to avoid
paying the agent's commission.
As with an open listing, agents will not be spending money
on marketing your home and it will not be placed in the
Multiple Listing System.
Exclusive Agency Listing
An "exclusive agency" listing allows an agent
to list and market your home, guaranteeing them a fee or
commission if the house sells through any real estate agent
or company. It also allows sellers to seek out buyers on
their own.
This is not a popular type of listing agreement. The reason
is that there is not much incentive for agents to spend
money marketing your home. If you come up with your own
buyer, they have spent money they cannot earn back through
the real estate fee or commission. Plus, it is too easy
for a greedy buyer to go around the agent and negotiate
directly with the seller.
If you find an agent willing to accept such a listing, do
not expect too much from them. They will probably just place
it in the Multiple Listing Service and sit around to see
if something happens. A good agent would never accept such
a listing, and you probably want a good agent.
Exclusive Right to Sell
Giving a real estate agent the "exclusive right to
sell" your property does not mean that there will not
be other agents involved. Your agent is the listing agent
and part of his or her job is to market your home to other
agents who work with buyers. Those agents will show your
home to their clients. Regardless of who sells the home,
even if you sell it yourself to a friend at work, your listing
agent will earn a fee or commission.
An exclusive right to sell is the only type of listing an
effective real estate agent will accept. This is because
they have a reasonable expectation of earning back any money
they spend on promoting and marketing your property. By
working with me you have options on how you can save potentially
thousands of dollars as part of an "exclusive right
to sell" agreement.
|