There are various types of listing contracts, but a few of them are used. The Exclusive Right to Sell is the most common one, but there are the “one-time show,” the “exclusive agency listing,” and the “open listing”. Now we will see them in detail.
- Open listing: The open listing is largely used by the people trying to sell their property or home by owner that those who are also willing to work with the real estate agents. Basically it gives the right to the real estate agent to bring buyers to bring the buyers around to view your home. The agent earns commission when their client buy your home. The home seller can give out open listings to every agent who comes around, because there is nothing exclusive about open listing. Due to this reason, no agent who accept this listing put in the Multiple Listing Service or going to market your home. The open listing is useful when, the agent feel that your home is convenient and fits the clients criteria then the agent may be willing to show it to them.
- Onetime show: In many respects the onetime show is similar to an open listing. It is mostly used by the real estate agents those who are showing a For Sale By Owner (FSBO) to one of the clients. The home or property seller signs on the agreement, which identifies potential buyer and the guarantees agent a commission should that buyer purchase home. This prevents the seller and buyer from negotiating later and trying to avoid the agent’s commission paying.
- Exclusive agency listings: This listing is not a popular type of listing agreement. The exclusive agency listing allows the agent to market and list your home. As well it is guaranteeing them a commission if house sells through any of the real estate agent or the company. It also allows the home seller to seek out buyers on their own. In this listing, there is no incentive to the company or to agent to spend time and money to market your home. If the seller come up with his/her own buyer, the agent or company have spent time and money cannot be get back through the commission. It is too easy for a lack of ethics and greed to enter the picture. Some unethical sellers or buyers will try to cut the agent, even it was the agent’s effort.
- Exclusive right to sell: The exclusive right to sell giving to a real estate agent means not that your property will not be other agent involved. Your agent is the listing agent, and most important part of his/her job is to market the home to the other agents those who work with the buyers. The buyers agents will show the home to their clients. Regardless of who sell the home, the agent will earn the commission. If you are looking for full service from an agent or his/her company, this is might be the only listing they will accept.
Make clear about the listings you are going to be signed with the real estate agent or the company. There may be little changes as per the company and with the local and state government policies.