Hey! Which Is Better ?
Exclusive or Non-Exclusive Agreement?
The short answer is it depends
Firstly, a listing agreement is contract between a real estate agent and a seller. Through the listing, the seller agrees that the agent has permission to advertise and handle the sale of a home. The terms of the agreement bind the seller, and they have binding financial consequences. The terms will include the agent’s obligations and what a seller can do if the agent fails to meet them.
Terms traditionally include the amount of the commission (which is traditionally 5-6% of the sales proceeds), the exclusive right to sell the home, how long the agreement will last, a safety clause protecting an agent after the expiration date, representations about specific facts such as the right to sell and whether anyone else has an ownership interest, duties of the agent and authorizations, and sometimes a dispute resolution clause.
In an Exclusive listing we sell your home FAST!
A listing agreement defines how a seller of a property and a Real Estate agent will relate in the process of selling or buying a piece of property and be compensated.
Why opt for an EXCLUSIVE LISTING?
Becoming exclusive with a real estate agent is similar to going steady—you make an agreement to stick with the same person. When you sign an agreement with one sole real estate agent to sell your house, your property is considered an exclusive agency listing. Your broker will have the right to sell the home for a specific, mutually agreed-upon amount of time and compensation.
“The word ‘exclusive’ makes it seem limited, but it is actually the opposite,” says Joakim Mugira, a real estate agent at mylibertyhome.co.ke, a Kenyan brokerage. “Exclusives can get you more exposure, thus more possible offers.”
Exclusive agreements can say anything, and time and compensation are not set in stone. Period or listing will depend on type of market. In a “Buyers Market” selling a property is tough and listings are competing for a pool of very few customers. The period requested will be a six-month exclusive. However, if you’re in a seller’s market with low housing inventory, real estate agents might be more willing to take a shorter exclusive. As is always we are paid or receive a commission when the sale is completed.
Advantages of an Exclusive listing
- You Agent will exclusively work for you to ensure a SALE.
- We shall prepare a marketing plan that you will approve that will guarantee that we shall sell your property in 90 days or we shall charge no commission.
- There is greater Loyalty and committment by both parties
- We are able to invest in the marketing of your property
- Your property gets more exposure and more showings
- We dedicate more time and resources to guaratee the sale of your home
- Your property will sell faster because we control all the aspects as to how your property is packaged, presented, positioned and sold. We guarantee we shall sell your property in under 6 months.
- We take out 90% of all the hassle out of your sale process by managing all aspects and details of your sell. These include followups and dealing with any hesitancies and objections by your buyers. We shall only present to you the serious buyers.
- In an exclusive listing agreement, the listing agent will have most of the control of the real estate transaction. Regardless of who finds the right buyer, the listing agent will earn a sales commission. In some cases, two agents are involved, and they are authorized to split the commission. Usually, the exclusive right is limited by contractual terms to a period in which an experienced agent can effectively market the house or condo. If a listing or contract expires, and the agent still has not sold the home and the seller is unhappy with the agent’s efforts, the seller can try to find another agent.
NON EXCLUSIVE LISTING
When your listing is non-exclusive, you are completely responsible for your sales or listing. We will still market your property and will find your buyer but cannot guarantee how fast we will sell your home. In a non-exclusive setting, you may list with other agents and you will pay the agent that sells your property. the real estate agent will only get a commission if he or she sells the home.
Non-exclusive listing agreements may benefit sellers because they will not be obliged to pay a commission to an agent if they do the marketing work to get the home sold. For example, if you informally find a buyer for your home through your own efforts, you will not be required to pay your non-exclusive listing agent a commission upon sale.Non-exclusive listing agreements also allow a seller to list a home with numerous agents, and they require payment of a commission only to the agent who actually sells the home. The downside of non-exclusive listing agreements is that if agents are not guaranteed a commission, they may not try to sell the property as aggressively (or at all) as they would if they had an exclusive listing.
Always seek the services of professionals when selling or buying property in Kenya
Our experienced agents at mylibertyhome.co.ke can discuss and handle any Buying and Selling property inquiry. We deal with executive and extraordinary high-end properties mainly located in Runda, KItusuru, Kilimani, Kileleshwa also represent diaspora, expatriate and other executives in Kenya and Beyond.
Take the step today and set up a free consultation with us.
