If you’re in the beginning stages of selling your home, you are probably exploring your options about how to list your property for sale.
You might be wondering what an exclusive listing of a property is or what an open listing is?
While the most common option is to sign an exclusive listing, you can also choose to list your home under an open listing as well.
If you’re unclear on what an open listing is, we can help.
An open listing is a listing option that allows the owner of the home to retain the exclusive right to sell the property.
This allows them to have open agreements with multiple different real estate agents, with only the agent who successfully sells the home being paid commission.
If the owner finds a buyer themselves then they do not have to pay any commission to the real estate agents.
For example, you might have open listing agreements with 5 real estate agents who will all be trying to sell your home for maximum profit which can create healthy competition among agents.
You will only pay a commission to the agent that finds the right buyer for your home.
Open listings are fantastic if you want a lot more flexibility and control over the home selling process and want to be more involved.
What is the Alternative to an Open Listing?
If an open listing isn’t what you are looking for and instead you want to let a specific real estate agent control the process for you, you have a few alternative options.
Some of your top options include:
• Exclusive listings: What is an exclusive real estate listing?
Exclusive listings are an exclusive agreement with one particular real estate agent.
This is the most common way of selling a home as many sellers prefer a specific agent who tailors a personalised approach to their property.
The exclusive selling rights for a set period of time allow a real estate agent to work harder on your behalf and create an advertising campaign that is designed to help sell your property fast and for the highest profit.
• Exclusive right to sell: an exclusive right to sell agreement is an agreement that gives the broker or agent the exclusive rights to earn a commission on the sale of the property.
They represent the homeowner to find a suitable buyer for the property.
However, if the homeowner finds their own buyer, the agent will still collect a commission on the sale of the property.
• Exclusive agency listing: What is an exclusive agency listing?
An exclusive agency listing is an agreement that grants the right to sell to one real estate agent.
However, if the homeowner finds their own buyer, they can avoid paying agency fees and commissions.
This allows a seller to have the benefit of a real estate agent tailoring a marketing and advertising campaign for them, but also provides the freedom to find a buyer themselves without having to pay a commission if successful.
What are the Advantages of an Exclusive Listing
There are many advantages to choosing to opt for an exclusive listing agreement when selling your home. These advantages include:
• Your real estate agent will work harder on your behalf: your real estate agent will craft a tailored and personalised marketing strategy designed to help your home stand out amongst other properties.
This extra effort will not only help your home sell faster, but it can attract a higher quality of buyers who may be willing to spend more on the property.
• Exclusive listings attract better offers than an open listing: some people think that open listings mean that there is something wrong with the listing, even if there isn’t.
There tends to be more trust in an exclusive listing and therefore people are willing to make a higher offer.
• You have one point of contact throughout the sales process: juggling multiple real estate agents can be time-consuming and confusing.
An exclusive listing agreement means that you have one point of contact throughout the process which makes the entire process smoother and more streamlined.
• Your agent will work with you to attain the highest offer for your home they can: with the guarantee of a commission upon a successful sale, your real estate agent will be working with you to attain the best price they possibly can for your home.
• Agents will prioritise the sale of your home: when a commission is practically guaranteed, agents are going to try harder to sell your home.
This generally means that with your real estate working hard on your behalf, there is a good chance your home is going to sell much faster than with other listing options.
What are the Disadvantages of an Exclusive Listing
To ensure that you are well informed and can make the best decision for yourself and your listing, there are a few disadvantages of an exclusive listing agreement that you need to be aware of.
• It may be difficult to find a buyer in some markets: a buyer’s market can often make it difficult to find a buyer if there are plenty of homes for sale and not many buyers.
This can make it difficult to find a buyer who is willing to pay top dollar, potentially impacting how long it takes to sell your home or the price you are able to achieve.
• You are legally obliged to stay with the agent until the agreement expires: you might not realise until after you sign a contract that your real estate agent isn’t performing to your expectations.
When this happens, you are legally obligated to stay with them until your home is sold or the contract expires.
Unfortunately, some real estate agents will work hard to get you as a client and then fall short when it comes to selling your home once they have exclusive rights for the time period.
This can be both frustrating and time-consuming resulting in a long, drawn-out sales process.
• It can be more expensive than other types of listing agreements: you are likely going to end up spending more on commission and other applicable fees with this type of listing.
• Sellers are not able to sell the property themselves: unfortunately you are unable to sell your property yourself when you sign an exclusive listing agreement.
You have to leave everything to your real estate agent and hope they are able to attain the best deal in your favour.
Should I Use an Exclusive Listing?
When you’re selling your home, it pays to understand the different types of listings you can choose from and which is the best for you.
Knowing the pros and cons of the various types will allow you to make an informed decision that will help make the entire home selling process smooth and enjoyable for you.
Open listings are a fantastic option if you want to be involved in the selling process and are happy to communicate with multiple real estate agents.
However, an exclusive listing may be a more appropriate listing option if you want to trust the selling process to one specific real estate agent who will have the exclusive right to sell your property for a set time.
This streamlines the process and means that you only have to stay in contact with one person, perfect if you are time-poor or just don’t like the idea of constantly fielding calls from multiple agents.
Selling your home doesn’t have to be a stressful process.
By picking the right listing option for you, you will know exactly what to expect from the process and be able to plan for all potential situations accordingly.
If you are looking for further information about exclusive real estate listings, we can help. Get in touch (https://www.pherrus.com.au/contact-us/) with our team today and see what we can do for you.