When listing your home to sell, the Exclusive Right to Sell Listing Agreement will likely be the contract you’ll sign. There is another type of listing agreement called the Exclusive Agency Listing Agreement, this contract might give you a bit more flexibility but it also may not be a good fit for you depending on your comfort level of selling the home. Most sellers hire a real estate broker and list their home with an Exclusive Right to Sell Agreement because it’s just easier. The real estate agent and broker list the home, do all the work and at the end when it sells get paid a commission.
Unlike the Exclusive Agency Listing Agreement, with the Exclusive Right to Sell Listing sellers don’t have to worry about marketing the property themselves, finding a buyer and messing with complicated real estate paperwork. The Exclusive Right to Sell Agreement means that regardless who sells the property, the listing broker will get paid a commission. Some sellers might think this isnt fair but the truth is that the listing broker is the one that does all the marketing for the property upfront and without any costs to the seller. Additionally if a seller is not proficient with real estate paperwork then this can be quite a liability on the seller so think of it as paying for marketing an know-how. You wouldn’t be upset with a lawyer defending you, don’t be upset when a Realtor represents you and keeps you out of real estate trouble.
The Exclusive Right to Sell Listing Agreement
Along with the services and marketing mentioned above, your agent may also need to be present for inspections, repairs and other on scene items in addition to ongoing negotiations and what will seem like endless paperwork. Your broker may even decide to do a brokers open house which means other real estate brokers only, not open to public and when a brokers open house is conducted there is always hors d’oeuvres and drinks offered. There is a lot of money and time that goes into listing a home for sale that many people don’t know about. What happens if the home doesn’t sell? The good news is that the seller doesn’t have to pay for any of the items that the agent paid for or any commissions, the bad news for the agent they didn’t sell the home so they didn’t get the commission and they had to pay for all the other items. The seller doesn’t pay a dime until their house sells, these are all items the broker and real estate agent will pay for in advance in hopes to receive a commission in the end after selling your home.
If you want your agent and real estate broker to work hard for you to sell your home then this might be the perfect listing agreement to sign. It assures the agency that you’ve hired that their efforts will pay off if the house and if it doesn’t sell everyone goes on their own way with no hard feelings.