If you are in the process of selling or plan to sell your home you need to understand the different kind of listing contracts. A listing contract is a simple agreement between you and licensed real estate agent that authorizes the agent to sell your home on your behalf. There are several different kinds of real estate listing contracts and in some states there are actually quite a few varieties of listing contracts. Far and away the most common type of listing contract is what is known as the Exclusive Right To Sell which more or less gives the real estate agent a broad range of powers to sell your home.
While the exclusive right to sell is by far the most common type of contract, it is not the only one. Another type of listing contract is called an open listing contract. An open listing contract is ideal for sellers who want to work with real estate agents to sell their home. An open listing contract basically allows the homeowner to fully participate in the selling process. Some homeowners exercise this option because they happen to have real estate experience or because they simply don’t trust their real estate agent.
The one time show contract is yet another type of real estate listing contract. The one time show listing contract is very similar to the open listing contract. If you have a one time show listing contract your realtor is essentially limited to showings of your house. As the homeowner, you must then handle all other aspects of the selling of your home. The one time show contract is a really great option if you have a little experience selling real estate and would like to save a little on the commissions paid to the realtor.
As already mentioned, the exclusive right to sell contract is the most popular form of real estate listing contract. The exclusive right to sell contract essentially gives your realtor a carte blanche to sell your home by any and all means possible (so long as those means are legal and ethical of course). This type of contract is great if you have no experience whatsoever selling real estate. The downside with this type of contract is that commission paid to the realtor in the event of sale is usually non-negotiable. Because the realtor is doing all of the work they of course want to be paid handsomely for their service.
The type of real estate listing contract you chose will largely depend upon your real estate experience and how much you want to save money. If you have some real estate experience under your belt, exercising the one time show contract is perhaps your best choice.