The 5 Listing Agreements
- 28.06.2008
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When you list your home for sale with a real estate broker, different options are available under the five types of listing agreements.
1. EXCLUSIVE AGENCY LISTING
An exclusive agency listing contracts one agent to sell the home. If that agent, or any other licensed cooperating agent finds an acceptable buyer, the seller must pay a sales commission. Again, as with a open listing, no sales commission is owed if the home seller finds a buyer on his own. Due to the lack of control over the outcome, most real estate agents are reluctant to work on an exclusive agency listing.
2. OPEN LISTING
An open listing is almost like a “for sale by owner” listing. A home seller offers pay a sales commission, to one or more real estate agents, to the first one who brings an acceptable purchase agreement. However, no commission is owed if the seller finds a buyer on his own, without any agent’s help. The open listing creates competition between the seller and agent(s) to find an willing buyer. Most agents won’t take 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 the inventory of homes for sale is very low.
