So you are thinking about selling your Mexican property? Well you are going to need to think about how to get it sold on the market.
But should you exclusively list your property with a real estate agent or should you be open listing?
Definition of Exclusive Agent Listing
An Exclusive Agent Listing is an agreement between a seller and a real estate firm or agent. The agreement grants the firm or agent the right to be the only firm or agent to market and sell your property.
However, you as the seller have the right to market and sell the home to a buyer without having to pay a commission. But only if you the seller find the buyer independently of the agent or firm.
This is different from an “exclusive right of sale” listing. The listing broker receives a commission from the seller regardless of who brings the buyer into the sale.
What is an exclusive listing?
Its an agreement between an agent or firm who you grant the right to sell your property. Its the normal listing agreement that home sellers will choose when they sell their home.
Your real estate agent will represent you for all intents and purposes. They will work with your best interests at heart to get you the best price for your home. When you sign an agreement, it will usually stipulate a set length of time that the agent has to sell your home. After this time you can cancel their services with no charge.
Why should you offer a real estate agent an exclusive listing when you can opt for an open listing? And have several real estate agents working on your behalf?
There are pros and cons to both types of listings, but an exclusive listing is worth considering.
Therefore is worth exploring the Pros and cons of an exclusive listing.
What are the advantages of an exclusive listing?
On the surface, an open listing seems the better option. You pay a lower commission compared to exclusive listing. You have all the responsibility to do your own marketing and advertising. And what’s better than selling your home, and no having to pay commissions to a real estate agent.
Paying a lower commission sounds great doesn’t it?
But, there are advantages to an exclusive listing.
Main Benefits of an Exclusive Listing:
Sure you will have to pay a higher commission. But you will not have to pay for advertising and other fees to market your home. In fact, an exclusive listing gives you advantages you might not have thought about:
- You get to have a genuine working relationship with a single real estate agent.
- Your real estate agent will work harder on your behalf. Selling your property is on a higher priority. The agreed time drives the agent or firm to use all their resources to make the sale of your property.
- An exclusive agent will work with you to make sure you get the highest possible price for your property.
- Research shows that exclusive listings tend to attract better offers than open listings.
When you work with a reputable exclusive agent or firm, they will work with you and represent you. A real agent will be transparent with you about everything related to selling your home. They may suggest renovations that will increase the value of your property.
They will work with you on advertising and marketing strategy for your property. This should attract higher offers. They will contact their network of realtors and buyers. All the activities necessary to getting the most exposure possible.
Summary of advantages of exclusive listing
When you arrange an exclusive listing, you have a professional working on your behalf.
Someone who has your best interest at heart. But when you arrange an open listing it can come with some serious problems.
Being an open listing means real estate agents will compete for the sale. This may sound like a good idea, but they may compete against each other instead of acting on your behalf.
They may take any offer that comes along and then try to convince you to accept it. Your property may not be their priority. Their exclusive properties will usually come first.
Disadvantages of an exclusive listing
Don’t choose any real estate agent or firm. Do your homework before you make your choice. We suggest you to interview 3 real estate agents first. Assess them on their character and their interest. Don’t make your decision based on commission alone. Some firms or agents may charge a lower commission, but you could end up paying higher fees in the end.
Some real estate agents and firms may charge a slightly higher fee. This should be because they include some advertising and marketing in the agreement.
Do your due-diligence. Read the fine print. Make sure you understand the agreement before you sign an exclusive contract.
Are you signed in an exclusive listing agreement with another real estate agent or firm? Would you like to switch to someone else?
If you’ve signed a contract then that agents has the exclusive rights to sell your property for a period of time. You must for the time to pass until you are able to find another agent. If the date is close then you have the right to research others.
If you’re not satisfied with your real estate agent or firm, you can change to someone else.
In a buyer’s market, your real estate agent or firm may not be able to find a buyer who can pay a fair price for your property.
So regardless of exclusive listing or open listing a buyers market makes it hard. If you have to sell your property fast. Choosing an exclusive agent or firm may be able to find a buyer sooner. But you may not get the price you want in a buyer’s market.
The advantages of an exclusive listing often outweigh the disadvantages. But regardless you must make sure you choose a real estate agent or firm you trust.
Caribe Luxury Homes Mexico real estate agents has been selling homes in Playa del Carmen, Tulum, and Riviera Maya since 2016. If we can’t help you, we can guide you to the right direction. Because choosing the right person to sell your Mexican property does make a difference.