Know the Four Major Types of Listing Contracts

Usually in my listing presentation I will explain to my potential clients the four different types of listing agreements and the benefits of each one. I thought I would write about it in my blog to help educate potential clients and the typical consumer out there.

Before meeting with a realtor to list your home for sale, familiarize yourself with the four most common types of listing contracts. While the exclusive right to sell listing is by far the most common, the other three are also well known.

* Exclusive Right to Sell Listing -- This agreement gives the real estate agent the exclusive right to sell your home. No matter who brings the buyer to the table, the agent gets a commission (even if you find the buyer yourself). You should expect full service from your agent with this type of listing, such as advice, advertising, MLS services, inspection, escrow coordination and marketing the home to other agents and prospective buyers.
* Exclusive Agency Listing -- Similar to an exclusive right to sell listing, the real estate agent receives a commission if your property is sold through any licensed agent. Unlike a right to sell listing, however, you reserve the right to find a buyer on your own without paying a comission. This is a good option for home owners interested in selling themselves, but want MLS services. Don't expect too much from the agent as he or she has no guarantee they will be compensated for their efforts.
* Open Listing -- An open listing grants the broker no rights other than to receive a commission if they find a buyer who successfully closes escrow on your home. It gives the agent permission to advertise and show your home. Since there's no promise of exclusivity, you'll be responsible for marketing your property, including arranging and coordinating showings, qualifying clients, and handling inspections, appraisals and escrow.
* One Time Listing Agreement -- A one time listing agreement, also known as a "showing listing," is an agreement where a home owner, usually a For Sale By Owner, agrees to let an agent show the house once. The owner agrees to pay a commission if the showing results in a sale. The purpose of this agreement is to prevent the seller from letting an agent show the home, then deal with the buyer directly in order to avoid paying a commission. As with an open listing, agents won't be spending any time or money marketing your home.

Thank you for your interest and I hope you can visit my website someday if you are interested in buying or selling real estate in Lewisville, Flower Mound, and Highland Village TX area. My website is www.NorthTexasHome.com