Is It A Good Idea?
An Open Listing is almost like a "for sale by owner" listing. A home seller offers pay a sales commission, to one or more real estate professionals, to the first one who brings an acceptable buyer. However, no commission is owed if the seller finds a buyer on his own, without any professionals' help. The open listing creates competition between the seller and professionals(s) to find an willing buyer. Most professionals won't take this type of listing because the seller can either sell the home alone or withdraw the listing without notice. Few professionals will spend their time or money working on an open listing, except when the property is very unique or if the the inventory of homes for sale is very low.
An Exclusive Listing is an exclusive agreement giving the right to only one agent to list, market and sell the property within 3 months. The exclusive agent will also be entitled to a commission no matter who sells it for the next 3 months after the expiry date. Some home owners avoid signing an exclusive agreement with an agent for fear that the agent may not be up to the task, or they may think that they may be lucky enough to the right buyer from among the many agents working hard and competing with one another for the same job. This perception that opting for an open listing will provide higher chances of securing a better deal for their property. However, in reality this method of selling their home often falls below their expectations.
Your Interests Comes Last
The professionals working under an open listing arrangement will not have the incentive to work hard, or invest time and money in marketing your property as there is no guarantee of getting a commission from the owner as other professionals may bring buyers to the table. The owner can also bypass the agent and sell it and not pay a commission as there is no exclusive right-to-sell contract with the agent.
It Creates Confusion For Buyers Who Are Interested In Your Property
A buyer could be served by multiple agents of yours due to multiple postings by many agents in property websites or newspapers, and the poor buyer may end up viewing the same house with different agents. You'll be wondering why you are seeing the same buyer again. The buyer will also be surprised to see you again.
Competition Among Agents Will Almost Always Lead To A Drop In Price
The agents marketing your property will want to make their commission quickly without giving enough consideration of your interests or the present market conditions. You will thus have no control over the price and will also lose precious time because buyers will have the initiative. An exclusive agency will enable you to have control over the price. A professional agent will advertise your property in a proper and responsible manner in order to attract buyers in the quantity and quality desired for you.
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