When a person wants to sell his or her home, this person will often turn to a real estate agent for help. The agent will list the home for the person, and this agent will receive a commission when the house sells. If a seller does not want to hire a specific agent when selling his or her home, the person can choose to have an open listing. Here are several things you should know about what this means.
It is a form of selling a house by owner
An open listing is actually a form of selling your house by owner, yet it is not exactly the same. When a person decides to sell their home by owner, there is no agent involved in the deal. With an open listing, the house is basically listed for sale by owner, but agents are free to show the house. If an agent finds a buyer, that agent will get paid for the deal. The owner of the house is responsible for marketing the home, preparing it for sale, and most of the other tasks involved with selling a house. The owner will not have to pay a real estate commission if he or she finds a person to buy the house.
The only agent that gets paid is the one who finds the buyer
In a normal listing, both the listing agent and the selling agent receive compensation when a house sells, but an open listing is very different. In the event that a real estate agent finds a buyer for an open listing, this agent will negotiate with the homeowner on the commission, and this agent will be the only agent receiving a commission for the sale.
There are pros and cons with open listings
If you are thinking about using an open listing, you should look at the pros and cons. The main pro in this is that you might be able to save money on the commissions of the sale. The cons include challenges with finding a buyer and challenges with finding agents who will work with you with a sale like this.
If you are thinking of selling your home and are considering an open listing, you should thoroughly evaluate this decision before choosing it, as it may be harder to sell your house with this type of listing. If you are asking, "How should I sell my home?" look at talking to a real estate agent.