Real Estate Listings

There are several ways to list a home for sale in the real estate market. Understanding the basic ways to list a property is important to both buyers and sellers. Depending on how a home is listed, certain parties will be involved and specific negotiation processes used.

The most common type of listing involves giving a real estate agent exclusive rights to sell the home, ensuring that only the listing agent will receive a commission on the final sale. This listing process typically means the agent will put in the time and money necessary to effectively market the property to buyers, since they are assured payment when the house sells. For people who wish to rely on the experts to sell the home quickly, this is generally the way to go.

Exclusive Agency Listing
However, there are other means by which to list a home on the market, including the exclusive agency listing agreement. This agreement also ensures the listing agent a commission should the house sell through that or any other broker. But in this type of listing, if the seller is able to sell the property independently, no commission must be paid to anyone.

Some experts feel this type of listing agreement is the best way to go, creating a competition between the agent and the seller to see who can sell the property first and keep the amount of commission. Others feel that brokers will not have any incentive to market the home, hoping to list the property and see what happens. Also, many brokers will not accept this type of arrangement, preferring the promise of commission that an exclusive right to sell agreement provides.

For those who remain confident they can sell their homes with no agency involvement, open listing agreements are most common. This agreement gives a number of brokers the potential to earn a commission on the final sale. But if the owner successfully sells the home independently, he or she owes commission to no one.