The housing market is finally increasing in value! You have been watching the home values trend up, so you decide it is finally time to sell your home. You make the wise decision to call a local real estate agent to put the home on the market for you. However, as you are going through the paperwork the agent mentions an exclusive listing. What is an exclusive listing and is it the best way to sell your home?
An exclusive listing is when the agent that represents the seller in the transaction is required to represent the buyer. Occasionally a builder will list exclusively with an agent to cut costs. Sometimes, sellers want an exclusive listing because they only trust one agent, and they are uncomfortable with another agent representing a buyer in the transaction. And in other cases, an agent may be willing to work for a reduced commission if they are guaranteed to represent the buyer and seller.
The drawback to exclusive listings is the lack of exposure a home will receive. It is impossible for a single agent to know every single buyer in your market. The power behind listing your home with a Realtor is the network of agents and buyers that each agent possesses. To sell your home quickly and for top dollar, you need as much exposure as possible and real estate agents are the best way to do that. In 2016, 88% of buyers purchased a home with the help of a real estate agent.
When deciding to sell your home, ask your agent if you are agreeing to an exclusive listing. You have every right to decided whether or not to agree to an exclusive listing. Unfortunately, exclusive listings are not always the most effective way to market a property. On average homes sell faster and for more money when they are marketed to the most buyers.
Before signing an exclusive listing agreement make sure you understand the pros and cons of limiting yourself to one agent.
John Jennings, III
BRE #01982171
