RealSpeak: Listings – Open and Exclusive
Posted date: September 23, 2020
TweetWhat is a listing?
Listing is a legal contract between a property owner (principal) and a real estate broker where the latter’s services, for a fee, is availed by the former in connection with the sale, lease, or mortgage of a property. Among others, it contains the description of the property, specified period of agreement, rate of commission and others…1
There are different types of listing agreements pertaining to exclusivity, fee, and function. We will discuss the two common types of listing agreements pertaining to exclusivity, which are the following:
Open Listing – a type of listing where a seller/owner lists property with multiple brokers who are often competing with each other. The belief is that this kind of listing – and the competition that will ensue – will lead to optimum market reach in a short span of time. The seller/owner can also sell the property himself, and he does not have to pay commission to any broker if he is able to do so.2
Exclusive Listing – a type of listing where a seller/owner lists property with only one broker or brokerage firm (that has a team of brokers and salespersons). In this type of listing, the seller/owner can also sell the property himself, but usually he still needs to pay broker’s commission.3 The primary reason for still paying commission is that the exclusive broker will have channeled a lot of resources to online and offline marketing campaigns to the benefit of the seller/owner, in addition to rendering service to process pertinent documentation.
So if you’re a seller/owner, which one should you choose? There is a common misconception that an open listing will provide faster and better results. However, the fact is not a lot of brokers or firms will invest much of their time and resources on open listings because at any given time, these listings could already be sold by other brokers without prior notice – not to mention that they might have exclusive listings that they focus on as well.
With exclusive listings, the broker or firm becomes a partner whom you can work with to achieve your desired outcome. Brokerage firms usually have dedicated sales and marketing teams who conduct concerted and comprehensive campaigns to promote your property. Having this kind of close working relationship also enables you to perfectly align your goals and expectations with the company’s services to attain fast and excellent results.
CASE STUDY
Let us look at an example when an exclusively listed property was sold expeditiously. Earlier in 2020, a 212 sq.m 3-bedroom unit in Garden Towers – a development by Ayala Land Premier in Makati City – was exclusively enlisted with Top Realty. With our team of 27 licensed and accredited real estate brokers and salespersons, supplemented with aggressive traditional and digital marketing campaigns, we were able to close it within 11 days from date of enlistment. Of all our exclusive listings, we have been able to close 80% within the given exclusivity periods as well. These serve to illustrate how beneficial an exclusive listing can be.
If you have properties to sell and need further advice, do not hesitate to contact us and we’ll gladly talk you through the enlistment process.
Footnotes:
1 Urban institute of Real Estate and Construction, Comprehensive Notes and Reviewer, Terminology: A-2
2 ibid. A-3
3 ibid. A-4
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