“An exclusive listing agreement means that that brokerage, and the designated agent within that brokerage you choose to work with, is the only brokerage that can represent you in the sale of your home during the time frame listed in the agreement. What it means is that you do not have different brokerages and agents attempting to market and sell your home on your behalf.
You are working with one brokerage and one agent that represents, advocates, and markets for you. It does not, however, inherently limit where your house is listed on the internet, or how it is marketed within your community. That is chosen/decided/agreed upon by you and the designated agent you are working with.
This is why it’s so important to interview agents prior to listing and find out about their experience, their web presence, their reputation within the real estate community, their macro- and micro-market awareness, and their specific marketing plan for your property.
The bottom line is, an exclusive listing agreement does not inherently dictate how or where your home is marketed, only who represents you and by whom your property can be marketed. However, a non-exclusive listing agreement may block your home from being listed in certain real estate websites. As a seller, you want to know that you are being represented by one solid and reputable brokerage, and an agent that is best suited to market and sell your property.” – Kevin Van Eck @Properties in Chicago, IL.
For properties owner:
When you come to the decision of selling your property, you can either list with multiple agencies or exclusively with one agency. If you decide to sell your property via an exclusive agent, you can only market and sell through the said agency as long as the timeframe of the exclusivity is effective. There are many benefits to list your property exclusively, some of these include:
- You can be assured that the appointed agent will market aggressively with a personalized plan ensuring that your desired interests are kept in mind.
- A closer and more through relationship will be extended between the agent and the client, which improves communication.
- Greater potential for gaining higher quality leads.
- Your property will be marked precisely to the market. This includes high-quality imagery; approved by the seller, correct market price and accurate property details.
- When a property listing is exclusive, agencies will place more resources, effort, and money into pushing your property.
- You will receive excellent marketing exposure, which may include:
- Prominent positioning on the agency’s website
- Featured listings on real estate portals
- Quality photography
- Detailed valuation on your property
- Communication on market trends
- Features in direct marketing campaigns (print & online)
- Private events or open houses
- Personalized property brochures
- Your dedicated agent will respect your time and privacy in relation to communication and property viewings etc
For the buyers:
Buyers will likely agree to work exclusively with you if answer two implicit questions:
- What are the benefits of working with one agent?
- Why should I limit myself to just one agent?
Here are some answers:
- The exclusive agent can be objective about which properties to show because he or she will earn a commission no matter which one the buyers purchase. The agent, therefore, doesn’t have to sell any particular property and can concentrate on the buyers’ needs and wants.
- The exclusive agent will feel no pressure to quickly sell a property to the buyers before another agent does. This allows the agent to give priority to the buyers’ priorities and timelines.
- The agent will be clearly negotiating in the buyers’ best interests during the purchase and in the event, a problem should arise.
- Exclusive agents tend to watch for new listings more closely for buyers who are depending solely on them. When agents favor customers they can count on, those buyers find out about new listings sooner.
- Exclusive agents can justify investing more time in explaining the purchase process to buyers, and establish a close working relationship with them.
- When buyers call their exclusive agent about internet listings or for-sale signs they’ve seen, they will get all information they need from an agent who is not biased toward that particular listing.
- The buyer can be represented by their exclusive agent purchase if they purchase a for-sale-by-owner property, by stipulating in the purchase agreement that the seller will pay the buyer’s agency fee.
- Searching and choosing properties to see will be more efficient because the exclusive agent thoroughly understands the buyers’ needs and wants.
- The exclusive agent relationship is more comfortable for the buyers because they don’t worry about the agent being self-serving or pressuring them. The agent acts as more of a guide and advisor than as a salesperson.
- Being represented exclusively is a bargain for buyers when their agent’s commission on a listed property sale is paid by the seller.
The above illustrates some of the more obvious reasons why an exclusive appointment is beneficial to all parties, the owner, the agent and the buyer.
Let me know your thoughts if you’ve encountered anything similar from the above article.
Article sources from Kendal & Co and Jim Luger, CDEI of www.continuingedexpress.com