Real Estate Listing Agreements to Sell a House
Most homeowners understand they need real estate listing agreements to sell a house. In fact, most people think a listing agreement is unavoidable. They move ahead with a real estate agent they know personally or have been referred to by someone they trust. And they sign the agreement presented to them, no questions asked.
It may come as a surprise to discover that there are three main types of real estate listing agreements in common use. The first one is the most familiar, to the point that most homeowners do not know any other type of listing agreement exists. Here are the three types of listing agreements used for single-family homes, which may vary from state to state in the US:
1. Exclusive Right to Sell Listing Agreement
This is #1 with real estate agents because the agent (more accurately, the broker of record for the agent’s office) has complete control over the sale transaction and receipt of the full real estate commission specified in the agreement. This listing broker can split the commission with other brokers who bring a buyer, and he or she can also discount the commission as part of listing or sale transactions.
Even if the seller who signed the listing agreement finds a buyer, the real estate brokerage is still entitled to a commission at closing. This is not the type of listing agreement to use if you want the right to look for buyers without paying a commission if one of your buyers purchases your house.
2. Exclusive Agency Listing Agreement
This arrangement is far less common and not well-known among sellers. It gives one real estate brokerage the right to a commission if an agent in the firm brings the buyer who closes the transaction. Other brokers can bring buyers to the listing broker and ask to show and sell your home, but the listing broker is not obligated to agree.
Meanwhile, you, as the seller, have the right to find a buyer yourself. You can bring a buyer to the broker and ask them to close the transaction for less than the listing fee because they did not find the buyer. The broker can agree to close the sale transaction for you or not. If the broker has spent time and money marketing your property, he or she will probably close the transaction for a reduced fee.
3. Open Listing
There isn’t a contract for this type of real estate listing because it’s basically an invitation to pay a commission to any agent bringing a buyer who closes a sale transaction. You have the right to sell your home yourself, too.
Because there is no protection for real estate professions in this type of arrangement, meaning no legal agreement in place, agents are not motivated to sell your home. You are essentially on your own.
Sell Your Home with No Listing Agreement
If you’d like to avoid signing a real estate listing agreement with any agent, call a professional real estate buyer instead. We Pay Fast purchases homes with no listing agreements and pays cash, with no commission or fees to the seller. Call 405-521-1805 or email [email protected] to sell your home with no listing agreement.