{"id":1671,"date":"2021-12-15T12:00:10","date_gmt":"2021-12-15T17:00:10","guid":{"rendered":"https:\/\/houzez.co\/?p=1671"},"modified":"2021-12-16T10:15:44","modified_gmt":"2021-12-16T15:15:44","slug":"open-listing","status":"publish","type":"post","link":"https:\/\/houzez.co\/open-listing\/","title":{"rendered":"Open listing: What it is and what you should know about it"},"content":{"rendered":"\n
So, how do you define open listing? What is an open listing in real estate? What does owner agent mean? All questions that you\u2019ll hear at some point if you\u2019re into real estate. An open listing is a situation where you get to sell the home by yourself.<\/p>\n\n\n\n
The open listing definition makes it a non-exclusive agreement, which means that the open listing agreement form can be signed by multiple brokers, but only the one who brings a buyer with a valid offer will get paid. This is a great choice of a listing agreement California can offer, among other countries.<\/p>\n\n\n\n
The difference between an open listing agreement and a regular one is that the owner typically pays just the selling broker\u2019s commission, making it about one half of what they\u2019d usually pay. Why would you opt for an open listing real estate sale?<\/p>\n\n\n\n
Well, the owner is unrepresented. Therefore, they just pay the broker to represent the buyer of the residential listing. And, if the owner finds a buyer that agrees to the residential listing agreement and buys it, all by themselves, the owner doesn\u2019t owe a commission to the brokers.<\/p>\n\n\n\n
For example, if there are plenty of buyers, the seller might opt for an open listing definition real estate sale. You can negotiate this kind of listing with each broker, and you can do either identical or completely different commission. The seller gets more flexibility, at the expense of being limited by the number of potential buyers.<\/p>\n\n\n\n
If there are more buyers than sellers with attractive listings, the risk is minimal. The main risk is actually exposure, or lack thereof, to all buyers. Some sellers though, think that they can adequately advertise their home, and would rather not hire an agent.<\/p>\n\n\n\n
However, agents don\u2019t just bring the ability to find a buyer. An experienced agent will save you from mistakes, and sellers might not recognize that until they actually make that mistake. At that point, it\u2019s too late.<\/p>\n\n\n\n
If an agent works with a lot of buyers, they might agree if they are certain they will get paid for bringing a buyer. They don\u2019t advertise the property or spend any money on promotion unless they\u2019re sure that the potential buyers will go through them.<\/p>\n\n\n\n
We might be discussing a special property, highly unique, and it might appeal to a lot of buyers. If the seller doesn\u2019t want to agree to an exclusive right-to-sell listing, the agent might see an open listing as the only solution. Open listings are a fairly uncommon sight, but they are far from impossible.<\/p>\n\n\n\n
For example, in a rural setting where you don\u2019t want to commit to a single brokerage, this might be an option. A rural listing commonly covers a large area, where word of mouth travels fast. Sellers can list with every broker if they\u2019re willing, and only pay the brokerage that gets them the winning offer.<\/p>\n\n\n\n
However, the seller doesn\u2019t have any representation. There\u2019s no agent to help them with the negotiations, disclosures or inspection. There are no fancy photos, professional marketing or negotiations. The seller is, in fact, only paying another agent to negotiate with the buyer.<\/p>\n\n\n\n
In this situation, you only list your property with one agency. This way, they will try to get you the best possible price, as this means they get a higher commission. You also set a length of time, after which, if the property isn\u2019t sold, you can cancel the contract without any penalty fees.<\/p>\n\n\n\n
\u201cJust you and me\u201d means that agent activity is exclusive to the broker that signs the agreement, but the seller keeps the right to sell by themselves. The broker might work with other brokers and split the commission, but you will only work with them.<\/p>\n\n\n\n
\u201cAn exclusive address\u201d is a fairly common option. The real estate broker gets the sole right to sell, and the seller is responsible for paying the commission, even if they sell the home themselves. There are, however, exceptions to the agreement.<\/p>\n\n\n\n
There should be a time clause which limits the agreement\u2019s length. In a weak market, the agent should have more time to sell. However, in a strong market, if things aren\u2019t working out after two or three months, it\u2019s time to change course.<\/p>\n\n\n\n
The listing agreement should also clearly define the commission. The usual range is from 3% to 8%, but the average is around 6%. And, you should specify when that commission is being paid, where the usual situation is after closing.<\/p>\n\n\n\n
There should be a language which forces the broker to inform you of any offers they might receive. Some brokers, for example, might hold back on offers that don\u2019t really benefit them. When you\u2019re a seller, you need to know about all offers, and having this in writing gives you confidence.<\/p>\n\n\n\n
The Multiple Listing Service lets your home be seen by the widest possible audience unless you\u2019ve got privacy issues. If you don\u2019t have this clause in the agreement, you should know why.<\/p>\n\n\n\n
There\u2019s also the lock box option, where a safe with your house key hangs on the front door. Real estate agents have access to the safe and might show the home even if you, or your broker, aren\u2019t present. If you\u2019re concerned about privacy and safety, you should avoid this.<\/p>\n\n\n\n
If you want to get the property sold quickly, go for an open listing. However, rushing to sell it will most likely have an impact on the price. If you do have the time, find an agent you trust, and you\u2019ll most likely get a much more dedicated service, as well as a better price.<\/p>\n\n\n\n
If you enjoyed reading this article about open listing, you should read these as well:<\/p>\n\n\n\n
So, how do you define open listing? What is an open listing in real estate? What does owner agent mean? All questions that you\u2019ll hear at some point if you\u2019re into real estate. An open listing is a situation where you get to sell the home by yourself. The open listing definition makes it a […]<\/p>\n","protected":false},"author":1,"featured_media":5859,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"yoast_head":"\n