|
Types of Listing Contracts
|
|
Back to: Seller Tips | Next Article: Details of the Listing Contract
 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 are also the "open listing," the "exclusive agency listing," and the "one-time show."
Open Listing
The "open listing" contract is mostly used by people trying to sell their home "by owner" who are also willing to work with real estate agents who bring in buyers. Basically, it gives a real estate agent the right to bring buyers around to view your home. If the agent's 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 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 and 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 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 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 if you're serious about selling your home you 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 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.
All Articles ©2000 Real Estate ABC
No articles may be reprinted or displayed without permission
|
|
|
This information is deemed to be accurate but not guaranteed.
You are advised to independently verify any information
or data that influences your decision to purchase or sell
a property. The current listings & closed transactions
are taken from the Southern California Multiple Listing Service
and may not be the work product from any one agent or broker.
|
Tony Dove, REALTOR®
Direct: (714) 283-1116
Office: (714) 282-4300
Toll Free: (800) 615-2707
Email: Tony@TonyDove.com
|
|
© 2006-2009 Tony Dove
The contents of this website are protected by copyright.
No elements may be copied or downloaded without the express permission of Tony Dove.
DRE# 01712563
Please read our disclaimer and privacy statement.
|
|
