The Ins and Outs of an Open Listing

Using an open listing is one option that you have when you are trying to sell your home. This type of listing can provide you with some unique advantages when compared to other types of listings. Most people are used to a certain type of system whenever they list a property with an agent. With a traditional real estate listing, you are going to work with a listing agent and they are going to represent you in the sale of your house. They are going to be your seller's agent and they will typically work in conjunction with buyers agents to sell the house. As a result of this, you are going to have to pay a full real estate commission.

Open Listing

Another system that you can use is referred to as the open listing. With this type of arrangement, you are not going to necessarily be using a listing agent. Instead, you are going to contact several real estate agencies and let them know that you have a property for sale. They are going to then try to find a qualified buyer for your property. If a real estate broker from one of those brokerages brings you a buyer, that broker is going to earn a commission.

Advantages

This type of listing can provide you with some advantages over other types of listings. First, you are going to increase your options. You are not being tied down to a particular real estate agent and you are free to market the property yourself as well. Therefore, if you find your own buyer, you are free to sell the house without having to worry about paying a real estate commission.

Another advantage of this type of listing is that you are going to be able to save some money on commission. Even if one of the brokers finds a buyer for your house, you are only going to have to pay half of the normal commission. This real estate agent is going to you working as a buyers agent for the buyer. Since you do not have a listing agent, you do not have to pay that portion of the commission. Basically, this could save you around three percent on the transaction. For every $100,000 of value in your house, you are going to be saving $3000. This can be a substantial savings when you get into larger houses.

Disadvantages

This type of listing can also provide you with some disadvantages as well. For one thing, you are not going to be working with a listing agent to market the property for you. You are basically going to be in charge of marketing your house yourself. This means that the real estate agents are going to look at your property as a "for sale by owner." This might make it more difficult to sell your house during a down real estate market.

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