Appointing Your Agent
We know listing your property can be an emotional decision and a financial one too. That is why we would like to help make the process a little easier for you and explain the differences between Exclusive and Open Listing.
Open listing agreement
An open listing agreement means you can share the responsibility of selling your property with multiple agencies as well as yourself. When the property does sell, by an agency, the commission is payable to that agency who brought in the buyer and sold your home.
- The agreement creates competition between agents and heightens the urgency to sell.
- If your home doesn’t sell you do not owe the agent anything, unless specified in the listing authority
- You can take your property off the market and part ways with the agency with no further obligation.
- You are free to market the property yourself as well. If you sell the property, you don’t pay commission to any of the agencies.
- Mostly you oversee marketing the property yourself, this can be difficult in a slow market.
- You may not get the right price for your property or a price you would like. With an open listing, agencies compete against each other, and sometimes it can become a race to sell your property. They may be more focused on finding a buyer to offer a price and persuade you into accepting, rather than finding the best offer for you and your property.
- Potential buyers may see the property as an easy buy if they see your property is with multiple agencies. Buyers may see an opportunity to compete with the agencies against each other and find the agency that is most willing to work with their needs rather than yours.
- Potential purchasers may consider that having multiple agencies with your listing as a sign your property is difficult to sell, implying there is something wrong with it, or it’s overpriced.
- The most concerning is in most cases agencies will prioritise their exclusive listings over their open ones. Meaning your property may be on the market for much longer than you anticipate, and in turn, this may drive the price down, and not achieve what you're looking for.
An exclusive listing means a single agency has the right and responsibility to sell your property when engaged. The real estate agency and salesperson represent you, the vendor for all intents and purposes, and will work in your best interests to get the best price possible for the property. A signed agreement will set out the length of time the agency has to sell the property, this can be – 30 days, 60 days or 90 days - after which you can cancel their services with no charge, unless otherwise specified in the agreement.
- You build a relationship with your salesperson and agency. Your salesperson will become someone you trust and get to know, and they will be working for you to achieve a price you want, rather than work to make a quick sale for the potential purchaser.
- Properties that are exclusively listed are 60% more likely to sell.
- Discussing your property with your agency is much easier, as there’s only one person to discuss details with. After finding an agent you trust, you’ll develop a relationship with them, and you will be in constant contact. The agent will be open about how many people came through the property, whether any offers were presented, and whether it’s wise to consider the offer or shut it down quickly.
- The agent will go above and beyond to ensure your property is ready for sale. This means marketing the property effectively and to its best potential, advising on when to open the property for inspection, and in some instances, bringing in experts to help furnish and decorate the property.
- The agency will put more resources into managing and selling the property. The agent is guaranteed their commission in the event of sale, so they will prioritise the sale of your property.
- It’s likely you’ll get a higher sale price as the agent works for you, and will be trying to find the best deal, rather than the quickest.
- You have more control over the sale, as you won’t have to negotiate and deal with multiple agencies.
- The salesperson is more likely to find quality offers, rather than bringing anyone to the table.
- When there is a downturn in the market it can be much harder for one agent to find potential buyers willing to pay high prices.
- Sometimes you can have long periods of time without offers, and the productivity of your agent can come into question even though they are working for you in the background.
- You may have to wait until the listing agreement time expires to change agencies without incurring any costs unless otherwise specified in your agreement with the agency if you decide that your agency is not right for you.
Overall, with an exclusive listing, agencies are much more likely to be personally invested in the sale of your property. They put in more work to find the right purchaser and the right price and will be less concerned with just making a quick sale and more willing to look after your best interests.
Now we have explained the differences between the exclusive listings and open listings and the benefits of both types as well as the disadvantages, we want to express what you get for your fees whether you list openly or exclusively with us.