What does the exclusive right to sell a listing mean?
An exclusive right to sell is one of the agreements you can make with your agent. While it’s more binding than other types of contracts, it can provide extra benefits for the seller and the agent that drive the home sale forward. Let’s explore the meaning of an exclusive right to sell and look at your other options for selling your home.
Exclusive Right-to-Sell Listing: A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker, regardless of whether the property is sold through the efforts of the listing broker, the seller(s), or anyone else; and a contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker regardless of whether the property is sold through the efforts of the listing broker, the seller(s), or anyone else, except that the seller(s) may name one or more individuals or entities as exemptions in the listing agreement and if the property is sold to any exempted individual or entity, the seller(s) is not obligated to pay a commission to the listing broker.
An exclusive right-to-sell agreement is not the only option out there. Here’s a closer look at a few of the other options.
Open listings allow multiple real estate brokers to find a buyer. Plus, the owner can still find their buyer. As a result, an open listing can create broad exposure to buyers.
Generally, open listings won’t be on the MLS. Instead, contact with multiple brokers could lead buyers to the property. This arrangement grants sellers flexibility but finding an agent willing to accept this deal can be challenging.
When your real estate agent lists your property on the MLS, it opens the door to many buyers. Almost every real estate agent uses the MLS to find properties for their buyers, so getting real estate listed there puts the most eyeballs on it.
You’ll find that most exclusive right-to-sell and exclusive agency listings are on the MLS, but it’s possible to pay a fee to place your property on the MLS yourself. If you decide to sell your home yourself, you can choose to list your home on the MLS.
A net listing is a final option that allows the real estate agent to pocket the difference between what the homeowner wants the house to sell for and the actual sale price.
This listing incurs more risk for the real estate agent. If they sell the home for less than the baseline number, they will walk away with no commission. On the other hand, they could score big with the right buyer.
Because of the downsides, it’s not surprising that this listing option is unpopular. It’s illegal in several states because it’s complicated and disadvantageous for agents.
How do I get out of an exclusive right-to-sell agreement?
Sellers who are looking to get out of their exclusivity agreement have several options:
You can wait for the listing agreement to end. This may be the best option if you’re only a few weeks from the agreement expiring.
It’s a good idea to look for the cancellation policies associated with the listing agreement to see if there are penalties for getting out of the agreement.
If you don’t think the sale is going well, your agent may agree. Reach out and speak with your agent and see if they are willing to end the agreement amicably.
An exclusive right-to-sell agreement can ensure that your real estate agent devotes their full attention to your home sale. The agreement is advantageous because it aligns the agent’s goal with yours.