While there are multiple types of listing contracts, few of them are actually used. The “exclusive right to sell” contract is by far the most common way to sell a home, but knowing the other types will allow you to make an informed decision about the best way to sell your house. After all, the sooner you sell your house, the sooner you can move into your dream St. James real estate.
The “open listing” is most commonly used by people trying to sell their home by owner, but who are also willing to work with real estate agents. 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 still earns a commission. There is nothing exclusive about an open listing and a home seller can give out their listings to every agent who approaches them.
For that reason, no agent is going to market your home or put it in the Multiple Listing Service. 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.
A “one-time show” is similar to an open listing in many respects, as it is most often used by real estate agents who are showing a FSBO (for sale by owner) to one of their clients. 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.
Exclusive Agency Listing
An “exclusive agency” listing allows an agent to list and market your home, guaranteeing them a commission if the house sells through a real estate agent or company. This type of listing also allows sellers to seek out potential buyers on their own.
This is not a popular type of listing agreement. Most real estate agents will not see the benefit in spending the money to market your home. If you come up with your own buyer, they have spent money they cannot earn back through the real estate commission. Plus, it is too easy for a greedy buyer to go around the agent and negotiate directly with the seller.
Exclusive Right to Sell
Giving a real estate agent the “exclusive right to sell” your property does not mean that there will be only one agent involved. Your agent is the listing agent and part of his/ 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 be entitled to a 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 house.
Ken Keegan Real Estate Broker
(910) 523-0903 mobile
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