Real Estate 101: What Is An Open Listing?

I've found that most people don't know that the listing agreement most real estate agents provide is not the only one available

. What you usually see is called an Exclusive Listing Agreement, and it is set up to guarantee your agent a commission at closing, regardless of who finds the buyer or handles the closing Naturally, brokers and agents want to know they will get paid a commission eventually when they work to advertise and show your house. I often use another agreement called an Open Listing when I want to sell my house quickly, however, and now I'll explain why I prefer it.

I like open listings primarily because the only time I have to pay a commission is when an agent actually brings me a buyer and closes the transaction for me. If I find a buyer myself I do not have to pay a commission to anyone, but I do have the responsibility for all the paperwork and the closing process. Since I have invested in hundreds of houses over the years, I'm very familiar with what needs to happen to get a sale closed. But sellers who have not been through the process, anyone who has not sold a house before, well, that's a different story. A first-time seller is probably going to find the process pretty cumbersome that first time around. She may decide to pay a title company or perhaps an attorney to produce the legal forms and to close the sale with her buyer's lender. Despite the fact that she will not pay a commission, she will undoubtedly have some expenses, but she will also have the advantages I enjoy when I want to sell a home quickly.

Let's suppose you have had some experience selling your house before so you are curious how I sell my house quickly using an Open Listing. I'll tell you how I do it, and how you can follow my example as well.

1. I begin by contacting two or three real estate brokers I've worked with in the past who have done a good job for me. I ask each of the brokers if he or she has any particular buyers in mind that are looking for a house like mine, If I hear something like, "yes, I know somebody who might take a look at your house," then I invite that broker to get an Open Listing Agreement for me to sign.

2. After giving a few brokers the opportunity sell my house and receive a commission I keep in touch with each one that signed so that I know what's going on. Really, each broker has said he or she would show my house to one interested buyer, at least one.

An open listing agreement is often vital for ensuring a quick sale of your home. Home owners should educate themselves on the process which makes for a smooth selling process.

by: Leo Kingston

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