When listing a property for sale, there are two main ways to list the property for sale, which are Open Listings and Exclusive Listings. They both have their pros and cons, not just for property seller, but for the agents as well, see below.
Generally speaking, Open Listings encourage Agents to work for the Buyer, not the Seller! Agents do not do this deliberately, this behavior comes with a lack of experience and the confidence to commit to working for their client, you the Seller. As an Agent it is our responsibility to work for the client we have signed an agreement with, who is normally the Seller, unless the Agent is working as a “Buyer’s Agent” (to be discussed in another article).
With Open Listings, there is no serious commitment between the Seller and the Agents, this then reduces the Agent’s commitment to the seller’s best interest (sale price and selling terms). When an office has over 100 properties listed for sale, most being Open Listings and a Buyer walks into their office, the Agent’s “Loyalty” quickly shifts to the Buyer. They just want to sell them a property now, any property, on the Buyer’s terms, so they do not lose the buyer to another Agent, who will likely do the same thing…
The thinking that having the “Agents compete” for your sale often works against the Seller, because the Agents becomes more interested in the sale (commission), not the Sellers best interest being the best sale price and sale terms. They just want to close the deal before another Agent does.
An Agent who has the confidence to only listing Exclusive Listings, is an Agent who will commit to their client’s (your) best interest, being the Seller. With an experienced Agent who only works with Exclusive listings, this Agent will generate greater buyer interest and have the buyers compete for the property, which will result in the best sale price and terms, sooner.
The best results are achieved when the Buyers are competing for the property, not when the Agents competing for the sale.
- More Agents have access to show the Property
- Agents are often reluctant to spend time and money promoting the property, which often results in fewer Buyer inspections
- Agent’s are unlikely to discuss a strategy with the Seller to help the property sooner, as this will also help the other Agents sell the property
- Agents will often show the property, to help sell another property
- Agent’s tend to work with the Buyers, to close the deal on the Buyers terms, because there is no commitment between the Agent and Seller
- After several weeks as an Open Listing, the agents have listed numerous more Open Listings and start to forget about your property
- There is a commitment between the Agent and the Seller, with a time frame motivating a result sooner.
- Agents are more willing to commit time, effort and their finances into achieving a result, which will result in more enquiries and inspection and a quicker sale
- Agents with more Exclusive Listing have a lot few listings, are then able to spend more time with each client/property to achieve a sale sooner
- As the Agent is not competing with the other Agents to sell the property, their motivation is to work with the seller, on the seller’s terms when negotiating the sale. The Agent can concentrate on having the Buyers Compete for your property
- An Experienced Exclusive Listing Agent does not wait for buyers; they know how to “influence” the Buyers already within the market and “attract” them towards your property
- The seller is only working with ONE Agent, who should be communicating with you the Seller regularly, about inspection feedback and market updates
- Experienced Exclusive Listing Agent are more willing to allow other agents sell their Exclusive Listings and share the commission with the other agent, this becomes a win/win for both Agents and the Seller
- Experienced Exclusive Agents are stronger and more experienced negotiators; someone you need working with you at a critical point in the sale, especially if the agent is negotiating on your behalf with another agent who is working for their Buyer.
For more information about Open or Exclusive listings, call Chris McGregor – 0420 555 997
See our recent Client Reviews at https://www.realestate.com.au/agent/chris-mcgregor-2415454?cid=agent-profile-page%7Crea%3Afind-agent%3Asearch-results