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 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.
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About Blaine Morris, Marin Properties
As a top-producing licensed REALTOR with
Frank Howard Allen in Greenbrae, California, Blaine Morris
specializes in Central and Southern Marin County. Always just
a phone call or email away, Blaine works seven days a week
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efficient service and follow through. Whether you are searching
for the home of your dreams, or thinking of selling it, Blaine
can turn your dreams into reality! Behind Blaine is the strength
and stability of the Central Marin office of Frank Howard
Allen, the #1 office of the #1 Brokerage in Marin County.
Contact him today at 415.925.3279 or
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