You may often hear property agents or brokers mention the word “listing” a property. What exactly does the list mean? For real estate agents, listing is an important source of information because that’s where marketing agents get property products, both in the form of land, houses, apartments, shophouses, offices, and others. This list is then offered to the other party.
A listing is an agreement in the form of a power of attorney to sell or an order to sell the property from the property owner to the estate agent. In the listing process, there are owners who have the desire to sell or rent their property, and there are customers who intend to buy or rent a property in the future.
There are several terms that are usually used by property agents or brokers in the listing process. The following listing terms you need to know:
An exclusive listing is a listing form associated with one of the agents designated by the vendor or property owner. If it is exclusive, the vendor may not grant sales authority to other agents, even family members or the vendor itself. The agreement between the vendor and the estate agent runs within the agreed time frame. By using this type of listing, other real estate agents, property owners, other brokers, or even the property owner’s family are not allowed to do marketing and selling this home or property. Usually before agreeing to the use of this listing, both parties need to make an agreement containing the duration of the exclusive listing. When the validity period expires, the property owner can freely remarket his property.
Exclusive listing profits, the homeowner or property submits the sales process to professional staff and exposure to the home or property becomes more extensive. Surely property agencies have an extensive network of marketing offices. Homeowners or properties do not face any hassles.
Sole agent listing is one form of listing that is tied to one of the designated agents. A single agent can also be called an authorized distributor. In contrast to exclusivity, in a single agent the vendor can sell the property.
Open listing is a very flexible type of listing. By using open listings, all agents, personally or on behalf of a single office, can market the sale of the property openly. This list is not bound by any agreement with the vendor. There are no exclusive offers. The essence of open listing is that the owner can decide to open an open listing with more than one real estate agent and pay only one agent who can bring in a buyer and then sell the house at the owner’s desired price.
The owner of the house or property only pays a sales commission to the property agent / agency who managed to get a buyer. Usually only half of the usual commission. The reason is because the owner is not represented. As a result, the homeowner does not have to pay the estate agent who represents the owner, but rather has to pay to the property agent representing the buyer. However, if the landlord finds a buyer himself, he does not owe any commission to any real estate agent.
Net listing is a form of listing that allows vendors to set a minimum price for the sale price of their property. The benchmark price is beyond the fees he has to pay such as commissions, sales taxes and notary fees. Net listing allows the agent to raise the nominal amount above the price set by the seller at the end of the sale. In other words, if the house sells for more than the seller’s asking price, the agent can take or ‘net’ the difference.
It is important to note that net listings are illegal in many states in America. Although legal in California and Texas, both states have rules to protect sellers and to avoid complications and potential lawsuits. Why do clients allow their homes to be listed on the internet list? The client may want to sell his house quickly, if, for example, he has found a new home and wants to move quickly. Net listing can incentivize the agent to have the house rented out immediately at a good selling price because the higher the sale, the more profit the agent gets. Unlike other types of listings where agents maintain a predetermined percentage as commissions, a net listing can be an opportunity to make more money.
This is not actually included in the list, but is a promise made by the vendor without evidence. An agent or broker can get listings from colleagues, friends or relatives. It can also be obtained from advertisements listed in newspapers, magazines, brochures, or banners in front of the house to be sold.
Usually an agent or broker will come to their promissory and then offer cooperation. If the seller agrees to use their services, then proceed to the transaction. If the quoted price is too high, the agent or broker can persuade you by making two payments. First, give a down payment during the transaction process. Second, pay off when the broker or agent has found the right buyer. This method is known as the flip or reverse transaction method