Listing Agreement Considerations: What to Choose?

When you are preparing to sell your house, signing a listing agreement with a real estate agent is most likely going to be an important part of the process. You need to consider all of the different types of listing agreement options and choose the best one for you. Here are a few things to consider about each type of listing agreement.

Exclusive Right to Sell Listing Agreement

The most commonly used type of listing agreement in the real estate industry is the exclusive right to sell agreement. With this type of listing agreement, you are going to work with an individual real estate agent to list your property. They are going to provide you with direct service throughout the process of selling your house. With this type of agreement, only the real estate agent that you contract with is going to be able to sell your property. If you try to sell the property to someone else, you are going to be in violation of your contract. You real estate agent is going to handle the marketing aspects of the sale. They will also have open houses and bring potential buyers into your property. If someone makes an offer, they will also negotiate on your behalf.

This type of listing agreement is going to be appropriate for those that do not want to handle anything associated with the sale of their house. They are more concerned with simply selling the house instead of worrying about the details. If you are someone who is a busy professional and you do not have time to do anything else, this type of listing might be appropriate for you.

Exclusive Agency Listing

An exclusive agency listing is another type of real estate listing that you might look at. With this type of listing, you will work with a real estate agency in order to sell your house. They are going to be able to market the property for you, however you are not bound to sell the house strictly through them as you are with an exclusive right to sell listing. If you find someone that is interested in buying the property on your own, you can sell the house to them. By doing this, you will be able to avoid paying a real estate commission on the sale. This type of listing is for those that do not have a lot of time to devote to the sales process, but they want to keep their options open.

Open Listing

With an open listing agreement, you are not going to be working with a specific real estate agency. Instead, you are going to work with several different real estate agencies in the area. You are going to give them the opportunity to sell your house and if one of them sells it, they are going to get commission. You are not going to be represented by a listing agent. Therefore, these brokers are essentially going to be buyers agents. This means that you are only going to have to pay half of the normal commission with this type of agreement. This type of listing is for those that want to save as much money as possible from their equity and have time to market their own properties.

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