With all of the legal jargon surrounding exclusive agency listings, it can be a difficult concept to understand. If a real estate agent offers the opportunity to turn your house listing into an exclusive agency listing, it is important to understand what it is and how it functions.
Exclusive agency listings are very simple to understand once they are broken down into their basic building blocks. They offer merit and value to both the seller of the house and the real estate agent, so they are popular and fairly common.
The main goal of an exclusive agency listing is to add the elements of exclusivity to a home. It makes a home more desirable because of its exclusive nature. It adds value to both the real estate agent or agency and the seller. Sometimes it can have an effect on the listing price, and the commission percentage given to the real estate agent.
Exclusive agency listings are better for some houses than others. this can be for many reasons. The main reason is that with different real estate agents and agencies working in the market, the industry is highly competitive and at times oversaturated with agents and homes for sale. Exclusive agency listings often help to elevate a listing above the rest so that it can be seen clearly. It also allows agencies to have more control over the buying and selling of a house.
What Is An Exclusive Agency Listing?
Exclusive agency listings are a type of real estate listing where there is a contractual agreement in which a listing broker is given legal recognition as a non-agency representative of the house sellers and/or acts as the agent. The sellers agree to pay the listing broker a commission of the house sale if and only if the property is sold through the work of the real estate broker.
While this may sound very similar to the work that any real estate agent does, it is different. There are several key differences between a normal situation with a real estate agent and an exclusive agency listing.
The most important difference, to break down the complex definition above, is that the home sellers give a real estate agency or agent the right to be the only agency or agent on the housing market that can market and sell the property. It is done through a legal contract and gives the real estate agency or agent agency over the house, it is marketing and is the only person or group legally allowed to sell it.
Real estate agents and sellers or buyers can do this so that there is exclusivity about their homes. It makes their home more unique, appear rarer to buyers, and often gives the real estate agent or agency a more prestigious appearance to the public.
Because it is a legal agreement, it cannot be broken without repercussions. If a real estate agency or a seller decides to violate the agreement, then consequences that have been stipulated in the agreement will be imposed. If there are no consequences stipulated in the agreement, it will often go to a civil court.
Exclusive Agency Listing Vs The Other Types of Real Estate Listings
To understand how exclusive agency listings are different from other types of real estate listings, we must be able to compare the different types of listings. Here, we will break down some of the common listing types that are different from exclusive agency listings.
Please make sure that you have read the definition and explanation of exclusive agency listings above so that you have the complete information about this type of listening before we begin to introduce other types of listings.
Another type of real estate listing besides an exclusive agency agreement is the exclusive right to buy a listing. For the listings that fall under this category, the client will hire the loan broker to act on their behalf to find a lender and arrange a mortgage for somebody that is to be purchased, or property that is owned by the client already.
Essentially, the loan broker is the one who goes out to find a lender who is willing to arrange the mortgage contract for the property that a person is looking to buy and/or for the property that a person is looking to sell. This is all done under contract and has a level of exclusivity.
It also means that the person who hired the loan broker cannot legally hire another loan broker or agent to secure and find a mortgage lender. All mortgage lending agreements and searching must be done through the loan broker. The loan broker has an incredible amount of agency to secure agreements and find lenders, so you must trust the loan broker that you are working with and that they are an honest broker.
Another type of listing agreement is the exclusive right-to-sell agreement. An exclusive right-to-sell agreement means that the seller of the house is responsible to pay the realtor regardless of what the real estate agent or the homeowners sell the property. The key difference when compared to exclusive agency listings where the seller only will pay fees to the real estate agent if the agent sells the property.
These agreements are always contractual and are done so for various reasons. Each real estate broker will have their reasons for agreement, so it is important to understand why these agreements are drawn up in the first place. Do not be afraid to ask a real estate agent questions about why they are leaning towards a specific type of agreement. Most often they will let you know what the plan is and how it can benefit you and them throughout the process.
Exclusive Agency Listing/Real Estate Needs?: Here’s How To Find The Best Real Estate Agency Near You
If you have specific needs that you think require an exclusive agency listing or another type of real estate agreement, you need to make sure that you are working with a good real estate agency. Finding the best real estate agent near you can feel like a challenge, especially with the over-saturation of real estate agents and agencies in the industry.
To find the best real estate agent near you, you have to know what you are looking for and a couple of other factors to narrow down your search.
When looking to buy or sell it is important that you know exactly what you are looking for. This is why spending some time to figure out what you need is very important. Taking some time to do some research about the type of house you are trying to sell or buy, what the average market prices are, getting pre-approved for a mortgage, and doing some other research to discover what is the proper course of action is highly recommended.
Oftentimes, real estate agents will tell you that day can teach you the ropes and explain to you everything along the way. That is often not the case. You want to know what is going on and what your plans are before you enter the arena of the housing market.
This can help solidify your position as an important client who understands the industry to an extent. You do not need to know everything about the housing industry or real estate, but you should have a general understanding of what you are looking for and how you are planning to sell your home. It can give you an edge over other sellers who are figuring out what they need and how they want to sell their homes later in the process.
When it comes to finding a real estate agency, using your social networks is a crucial part. relying on trusted friends and family to give you information about the real estate agents that they use is a very good way to find a real estate agent or agency that is both professional and understands the type of market that you are in.
Do not be afraid of asking friends or family who have gone through similar situations with similar houses and have a similar budget about what agent or what agency they used. This is a very easy way to find a real estate agent or real estate agency that is well-versed in selling and buying houses in your needed demographic.
Another way to find real estate agents or agencies that are reliable and professional is to explore popular options online and do some research on the options that arise. That is how people who do not have friends or family who have used a real estate agency before can find reliable agencies, who are ready to help you through this whole process. Reach out today to a premier real estate agency to get started on your real estate journey right away.