This practice is no less true in real estate.
In the Bahamas there are primarily two types of listing agreements to consider when listing your property with an agent: ‘Exclusive’ and ‘Open’. Consider the differences before you sign:
Exclusive Listing Agreement - Benefits:
- Priority Services
- Under an Exclusive Right To Sell Listing contract, the broker is the only one authorized to sell your home. If another agent finds a buyer, your broker earns a commission. This arrangement gives your broker the greatest incentive to spend time, money and energy marketing your property, especially to other local agents who can show your property to their buyer clients, coordinated by your Exclusive Broker.
- Only with an exclusive right to sell agreement can you expect to get a full service marketing effort from your broker, since it is the only listing type that assures a broker will get paid for his marketing expense and efforts when the property sells.
- Your property will be placed on the agency's website and the local MLS service (Multiple Listing Service) providing the greatest possible local and international exposure.
Here's the scenario with an "Open Listing Agreement":
- It is a non-exclusive contract, giving the broker permission to show potential buyers your property. The broker will only earn a commission by bringing in a client who buys the property.
- Because it is an 'open relationship', sellers can sign listing agreements with as many brokers as they want, often resulting in a mass confusion of Agency signs. The bottom line with an open listing is that no broker has any incentive to market the property, often resulting in a much longer listing period or no sale at all.
- Open listings are not placed on the local MLS service; it's primarily up to the seller to field phone calls and coordinate showings from the various brokers, agents, or stop-by's resulting from the mesh-mosh of real estate signs, etc.
- Since there is no assurance that expenses will be recovered little if any, should be expected in the way of marketing or advertising with an open listing contract.
Of course, there are always exceptions - some agents will do all they can to ensure your property sells, no matter the agreement! Get to know your Agent - see what they can and will do for you.