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What is an Exclusive Listing?
There are a number of ways to sell a property, but which one is the best? It depends on the situation and who you ask, of course. But there are some distinct advantages to choosing an exclusive agency listing. What is an exclusive agency listing? It’s an agreement made between a real estate broker and the property seller. In the agreement, the seller grants the real estate firm the right to be the only firm with the exclusive right to sell the property.
Yes, you will sign an exclusive agency agreement and pay a commission to the real estate agent once the property is sold, but it has many advantages. The National Association of Realtors reports that only about a quarter of people who try to sell their home or property on their own actually succeed in doing so. Your broker has both experience and a wide array of resources at their disposal to help you.
While this agreement may sound restrictive, it’s actually greatly beneficial and here are seven reasons why:
1) Loyalty between you and your broker: Brokers have a duty of loyalty to their clients who have engaged them to market their properties. To take time away from Listing clients to spend time on unlisted property is doing a disservice to those who have hired IRC as their listing broker.
2) Your broker can spend more time on your property: With an Exclusive Listing, your broker can afford to put more time and effort into understanding your property. As this is a commission business, brokers spend a great deal of unpaid time developing information on a property and market area. Without an exclusive listing, the broker knows that another broker may go around him to the seller directly, cutting him out of the commission. This makes it unwise to spend time putting together information on an unlisted property and presenting it
3) Thorough information in your agency listing saves time for property buyers and their agents: When your property is listed with a capable broker who has spent hours delving into the characteristics of the property and the desires of the seller and then building a thorough information package, it saves the Buyer’s agent a great deal of time. It also conveys confidence that the information is accurate and reliable.
4) Increases the chance that your property will be seen: Buyer’s agents must be cautious of their time, too. The Buyer’s agent may be gathering information on many properties to present to his client. He often will not take the time on an unlisted property, because of the information he needs is not readily available.
5) Offers assurance for the agent who represents the seller: A Listing Agreement specifies that the seller will pay a commission. Without a written agreement, the broker has only the verbal assurance of the seller that he will be paid at closing.
As the Broker will have upfront expenses of listing the property, preparing the offering information package, signage, etc., they will already have considerable expenses and need to have an agreement they will be paid if the transaction is successful.
6) Ensures cooperation on all sides: A broker is rarely so greedy that he refuses to work with other brokers. No question these brokers are in the business, but there are very few, and all of the other brokers know to avoid them if possible.
7) Professional marketing of your property: An exclusive agency listing means that you get a thorough market analysis of your property and the surrounding area to determine the best strategy for maximizing your profit. Your listing agent will not only utilize this tool but also analyze the highest and best use of the property to determine the best marketing strategy.
In summary, there are many advantages that an Exclusive Agency Listing provides you. Your broker will use every marketing tool and strategy available to sell your property successfully. Broker’s not only spend a great deal of time on your listing but all of the high tech resources are very expensive and even low tech signage costs hundreds of dollars.
At Investment Realty Company, L.C., we will prepare a colorful marketing, multi-page flyer as well as a complete marketing package for presentation to prospective purchasers. We will personally contact all the developers, users, and brokers in our area that will have an interest. We will also contact selective prospects in other cities that we feel will need to know about your property. Additionally, it will be listed on a variety of subscription based data bases like CoStar and LoopNet, giving your listing the widest possible coverage.
For more information or to speak to an agent, contact us at 210-828-9261