Selling a property can be a daunting task, even for the most seasoned professional. Selecting a knowledgeable and experienced real estate broker should be first on your list. The second step is deciding which type of brokerage agreement will take you to your goal – selling your property for the desired price.
Exclusive Listing: In this type of agreement, the seller agrees to pay a commission if broker is successful in negotiating terms acceptable to both parties that lead to a purchase agreement, regardless of whether the buyer is found through the efforts of the listing broker, the owner or another broker.
How and where a property is marketed will determine how quickly and efficiently it sells. The exclusive listing broker oversees positioning of the listing and is responsible for marketing and selling it as quickly and efficiently as possible while getting the highest price. In Puerto Rico, that means having a well-spoken, bilingual broker with a strong network of potential buyers.
Having one broker in charge is a much more efficient and effective sales technique. It avoids duplicity and complications that occur when a property is offered to the same prospect by different brokers. Most importantly, a broker with an exclusive contract will make your end goal a high priority and allocate more tools and effort into selling your property since they are guaranteed payment if they succeed.
Open Listing: With an open listing agreement, owners can try to sell their property by themselves while listing it with as many brokers as they want only paying a commission to the first broker to produce an acceptable buyer. Owner will not have to pay any commission if they’re able to find a suitable buyer on their own.
The downside with an open listing is that brokers are unlikely to invest a lot of time or money promoting the property. A property advertised by both the owner and multiple brokers at the same time, often with conflicting information, creates confusion and affects the property’s image and desirability. An agent with an open listing will be less motivated and will undoubtedly provide a more limited service. Many brokers will not accept open listings since they consider their time best spent on their exclusive listings.
Semi Exclusive Listing: In this type of brokerage agreement, the owner gives exclusivity to one broker only but retains the right to sell on his own in which case he does not have to pay the broker a commission. Few brokers will agree to this kind of brokerage agreement since it places them in a disadvantaged position – competing with the owner. The National Association of Realtors has found that brokers can help sell your property for up to 32% more than if you were to sell it on your own. The owner may know their property the best, but brokers are most familiar with how to sell it fast and for the highest price in the local market.