Exclusive Agency Listing
An exclusive agency listing agreement is defined by an agent having the exclusive right to represent the seller, but the agent will only receive a commission if they bring in the buyer. If the agent fails to bring in a buyer, the seller is not required to pay a commission. While this is attractive to sellers, it is not a golden opportunity for the agent. Due to this, the exclusive agency listing type is not an overly popular, or common listing agreement.
Pros
- Potentially Save Money. This type of listing agreement leaves a window for you to potentially save some money. If you find the buyer of your home, then you do not have to pay any commission fees. If you have someone in mind you know absolutely loves your home and is looking to buy, this might be the listing agreement you need to get.
- More Control. Using an exclusive agency listing allows you to bring in buyers that you already know and trust. This increases your privacy as well as your control over selling your house.
Cons
- Less Agent Motivation. If an agent is not guaranteed a commission it is possible they will not put as much effort into marketing your home. Some agents may not even list your house on the multiple listing service. This would put the bulk of the work to market and sell your home on you.
- More Work for You. Since there is a possibility that your agent will be less motivated to work hard to sell your home, you pick up a lot of work. While you may be excited for the task ahead, make sure you do your research so you are prepared.
Deciding to use an exclusive agency listing is a risk, but that risk has the potential to pay off. If the buyer you found falls through for a number of reasons, or you are having trouble marketing your home, you may not have the full force of an experienced agent behind you. Again, if you already have an interested buyer this could be well worth it. If you do not, you may want to evaluate how willing and able you are to find a good buyer to sell your home to.
