When it comes to types of listings, there are three which are the most common used in real estate today. They are:
- Open listings
- Exclusive Right to Sell Listings
- Exclusive Agency Listings
The type of listing you choose is dependent upon several factors, such as the seller’s eagerness to take on some extra responsibilities, in addition to the state of the overall real estate market. We are going to provide you with a summary of each type in order for you to make the most informed decision when it comes to listings your property.
Open Listings: This is the type of listing which is widely known as “For Sale By Owner”. Under this type, the sellers may have open listings with more than one real estate agent, and ultimately the one that brings forth the accepted offer will earn their commission. Under this type of listing, the seller will most likely pay only a broker’s commission for the agent representing the party purchasing the property, which turns out to be on average about half of the normal costs. Under this listing, the owner of the property is not represented, only the buyer.
Exclusive Agency Listing: Under this type of listing, the owner still reserves the right to sell a property themselves and not have to pay out a commission to anyone. However, they are represented by the broker. With this type of agreement, the owner’s broker is paid a listing commission which they typically split with the broker representing the party purchasing the property.
Exclusive Right-to-Sell Listing: This type of listing is the most widely used in real estate. It provides the owner’s broker the right to earn their commission by representing the seller and bringing an accepted offer to the table – either through another brokerage or themselves. The owner does not reserve the right to sell the property, thus avoiding having to pay out a commission altogether. One broker can serve as the “dual agent” under this type of listing agreement.
We understand there can be so many questions and items of which to navigate when it comes to real estate. That’s why our American Dream Team is at the ready to answer the ones you have. Call us today!