The current real estate brokerage scenario offers few property options to buyers even when there is lot of inventory available in the market. The prime reason for the same is that real estate brokers or real estate agents do not share their listings with the other agents in the market. As a result, the seller gets fewer genuine buyers for his requirements and so has a lesser chance of liquidating his property faster and at a right price. There is also a fear of being eliminated from the entire transaction by not being able to track the buyer and seller.
A simple solution to this problem is working on an exclusive listing arrangement with the seller.
Why an Exclusive Listing Agreement?
- An exclusive listing generally results in a higher selling price. When the agent feels that his time and money investment is relatively safe, he will take his time to negotiate or turn down offers as he deems appropriate.
As a result, he works more closely with the seller to do the transaction and get the right price.
- An exclusive listing allows the agent to place a yard sign. With 60% of the buyers coming from yard signs, you want a sign on your yard! The agent will not place a sign without an exclusive listing agreement, as he could be working for no compensation for his efforts. A real estate agent will then essentially receive calls on behalf of you, will work on staging the property to showcase it to buyers and will make all possible efforts to sell it at the right price.
- An exclusive listing allows the agent to invest more in advertising. When you grant the agent an exclusive listing agreement, she can invest more in advertising as the investment will be relatively safe.
Otherwise, she would rather invest money somewhere else. More advertising will lead to more buyers and then these more buyers lead to better price for the property.
- An exclusive listing gets more agents to work for the seller.
With an exclusive listing agreement you are giving the agent the freedom to share your listing with as many agents as possible. Your property actually has more – not less – exposure with an exclusive agreement. Further, as it gets exposed to more agents, the chances of it attracting the right real estate buyers also increase.
- An exclusive listing keeps you better informed. The agent is committed to providing you first class service and keep you better informed throughout the steps of the transaction. Information is power, and you should have as much information as possible.
The agent will act as a true real estate consultant and will ensure that the transaction goes through smoothly.
Thus, the seller and the real estate consultant should work in close co-ordination and cooperate in order to ensure that they get the best price for the property that the seller owns. Instead of the seller working on the property himself as a For Sale By Owner (FSBO), he should search for a good agent who can work on his behalf.