Other Types Of Listing Agreements
An exclusive right to sell agreement is not the only option out there. Here’s a closer look at a few of the other options.
Open listings provide the most opportunity for the home buyer. With an open listing, the owner is allowed to place listings with more than one real estate broker. Plus, the owner can still find their own buyer.
Generally, open listings won’t be on the MLS. Instead, contact with multiple brokers could lead buyers to the property. As a seller, this offers the most flexibility. But it can be challenging to find an agent willing to accept this deal.
When your property is listed on the multiple listing service (MLS), it opens the door to many buyers. Almost every real estate agent uses the MLS to find properties for their buyers, so getting your property listed there puts the most eyeballs on it.
You’ll find that most exclusive right to sell and exclusive agency listings are on the MLS, but it’s possible to pay a fee to place your property on the MLS. If you decide to sell your home yourself, you can choose to list on an MLS.
A net listing is a final option that allows the real estate agent to pocket the difference between what the homeowner wants the house to sell for and the actual sale price.
With this type of listing, the real estate agent is taking more of a risk. If they sell the home for less than the baseline number, they will walk away with no commission. On the other hand, they could score big.
It is not surprising that this complicated listing option is rather unpopular. In fact, it is illegal in several states.