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 Exclusive Right to Sell
Giving a real estate agent the "exclusive right to sell" to your property does not mean that there will not be other agents involved. Your agent is the listing agent and the most important part of his or her job is to market your home to other agents who work with buyers. Those agents will show your home to their clients. Regardless of who sells the home, even if you sell it to a friend at work, your listing agent will earn a commission.
If you want full service from an agent and his or her company, this is probably the best type of listing. Full service means an agent will advertise your home, place it in the Multiple Listing Service (MLS), market the home to other agents, and perhaps even hold open houses. This requires an expenditure of both time and money.
Only with an "exclusive right to sell" does an agent have a realistic expectation of earning anything on their investment in selling your home. That is why it is the most common and beneficial type of listing.
Agency Duties of a Listing Agent
Many people think of the real estate agent as a salesperson, but in fact they do much more than just aiding in selling/buying homes for you.
An agent is "responsible" to their clients. They have a duty, called a "fiduciary duty". This means the agent is responsible to act in the best interests of their client (you). For example a car salesman does not have to act in your best interests -- they just have to sell you the car. It isn't as simple for real estate agents.
Real estate agents not only have to sell the house, they have to be responsible. That involves liability, which is one reason for all the disclosures and the pages and pages of never ending contracts, our agents take every precaution to make sure that all the “t’s” are crossed and all the “i’s” are dotted.
The listing contract will specify that your agent is acting as a "seller’s agent." This means that, in the sale of your house, they are working for you and only you -- and looking out for your best interests.
However, there may be times when your listing agent has a client who wants to purchase your home. For that reason, there is a little "wiggle room" in the listing contract. If your agent also represents the buyer, the listing contract will specify that they provide an additional disclosure that detail whether they continue to act as your agent or assume the duties of a dual agent.
The contract also provides permission for your listing agent to act as an agent for others on other transactions. They can continue to list other properties, and represent buyers looking at other homes besides yours.
Open Houses
An open house when your property is first placed on the market can be very important if not vital, but not for the reasons most homeowners think. Just like with advertising, most visitors to open houses rarely buy the house they come to look at. They may not even know the price of your home when they stop by to visit – they probably just followed an "Open House" sign to your door.
An open house performs a similar function to the neighborhood announcements – it lets all of your neighbors know that your house is for sale, and it practically invites them to come "take a look". Being generally curious, a lot of your neighbors will take advantage of the invitation. Then in return, might tell their friends about your house, creating the best type of advertising which is "word of mouth". |
