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Types of Listings with Agents
There are several different types of listing contracts. Few of them are detailed below:
This type of listing is when you, the seller, don't want to commit to any one particular agent and when you are also open to selling the home by yourself. This type of listing with an agent gives him the right to bring buyers around to view your home and should the deal go through, the agent earns a commission. This is a non-exclusive type of listing and the disadvantage of such a listing is that the agent is not going to spend too much on marketing your home or putting it in the Multiple Listing Service. The advantage of this type is that, should you find a buyer yourself, you would save on the commissions that would otherwise go to the agent.
A "one-time show" is similar to an open listing and is most often used by real estate agents who are showing a FSBO (for sale by owner) to one of their clients. The home owner signs the agreement, which identifies the potential buyer and guarantees the agent a commission should that buyer purchase the home.
Exclusive Agency Listing
This type of listing would have you sign on with only one agency / agent and would ensure they get the commission if another agent brought a buyer for this place. However, if you get a buyer on your own, the agent is not entitled to any commission. This is not a popular type of listing agreement. Some unethical buyers or sellers will try to cut out the agent, even though it was an agent that brought the buyer to the home.
Exclusive Right to Sell
This type of listing involves entrusting your agent with the exclusive rights to sell your home. Regardless of who sells the home, even if you sell it yourself to a friend at work, your listing agent will earn a commission. Such listings usually give an agent to spend on marketing your house and also listing it on the MLS.
Sameer S Panjwani is the CEO and Founder of ChoiceOfHomes.com - Real Estate Portal for Home Buying, Home Selling and Home Renting. The website is a useful resource of Home Listings, Articles and Information related to real estate.
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