Types of Listing Contracts:
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
"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.
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.
Exclusive Agency Listing
"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
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.
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 you probably want a good agent.
Exclusive Right to Sell
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.
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.