Finding an agent to represent you can often be a time-consuming and overwhelming process. While you want to find someone who will work with you and your needs it's also important to take the various types of listings into consideration. Although the Exclusive Right to Sell contract is the most common there are other listing contracts you should be aware of so that you and your agent can choose the listing that will work best when it comes to selling your home.
Exclusive Right to Sell
With this contract the listing agent has 100 percent control of the transaction regardless of who finds the buyer. That means that even if you have a friend who wants to buy your property the listing agent will earn the sales commission. If another cooperating agent is involved the commission is typically split between the agents. Normal contract length runs 90 or 120 days but if the house doesn't sell and you are happy with your agent you can still re-sign for an additional time period.
Similar to a For Sale By Owner listing if you choose an open listing that means you're willing to work with real estate agents who want to show the home in an attempt to earn a commission. There is no exclusivity and the home seller can give the listing to as many agents as he or she wants. Of course no commission is owed if the seller finds a buyer on his own without any agent's help. Many agents shy away from this type of listing because the seller can either sell the home alone or withdraw the listing without notice. Few agents will spend their time or money working on an open listing except when the property is very unique or if the inventory of homes for sale is very low.
A multiple listing service distributes listing information and photos via the computer to members who are working with appropriate buyers. Most MLS listings are also available on the Internet allowing homebuyers to research what's for sale on their own. MLS members can submit exclusive agency and exclusive right to sell listings to the local MLS.
This type of listing is similar to an open listing and is often used by real estate agents who are showing a For Sale by Owner listing 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 keeps the two parties from negotiating 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.
For more information about various types of listing contracts contact our office today.