 TYPES
OF LISTINGS
 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 the "open listing," the "exclusive
agency listing," and the "one-time show."
Open Listing:
The "open listing" is mostly used by people trying to
sell their home by owner 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 earns a 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 who accepts an open listing 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.
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, 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.
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 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 an "exclusive agency" listing is unpopular
is because there is no incentive for your agent and their company
to spend money and time marketing your home. If you come up with
your own buyer, they have spent money (and time) that cannot be
earned back through the real estate commission.
Plus, it is too easy for greed and a lack of ethics to enter the
picture. Some unethical buyers or sellers will try to cut out the
agent, even though it was an agent's efforts that brought the buyer
to the home.
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.
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 the most important
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 commission.
If you want full service from an agent and his or her company,
this is probably the only type of listing they will accept. Full
service means an agent will advertise your home, place it in the
Multiple Listing Service, market the home to other agents, and perhaps
even hold open houses. This requires an expenditure of both time
and money.
Only with an "exclusive right to sell" does an agent
have a realistic expectation of earning anything on their investment
in selling your home. That is why it is the most common type of
listing.
Of course, the agent and their company still have to perform in
order to get paid -- your home has to sell.
All articles © 2000 RealEstate ABC
No articles may be reprinted or displayed without permission.
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