What is an Exclusive Listing?

Dear Rebecca
I am helping my elderly mother get her home ready for sale as she has decided to move to a small apartment. We are wondering about a couple of things – first my mum does not really want the neighbours to know her business so she was wondering if we have to have a sign and if we have to have an open house? If we have a real estate key box on our home, what time can we expect agents to show our home? Does she have to leave for showings, because this is going to be very difficult? One of her friends sold her house with an agent but it was never on the MLS website and it never had a sign. She said it was exclusively listed. How does that work?
Nancy

Dear Nancy
There are three kinds of listings: an MLS (Multiple Listing Services) listing this is when a single real estate agency lists and advertises the property through a co-operating agency system. The listing agency has the responsibility to handle promotion, negotiation of offers and payment of a commission to any cooperating agent who sells the property. The contract for this type of listing is standardized and all MLS listings will be using the same contract. This is the only kind of listing to appear on the MLS website. With this type of listing agreement the marketing of your home is maximized as it will be available for all buyers in the market to view and must allow any agent from any agency to show it.

The second type (as your mum’s friend had) is an exclusive listing, which allows only the listing agency the authority list, sell and market the home. With an exclusive listing, the listing agency can decide to allow another agent to show. Although you may get website exposure from the listing agency there is no listing on the MLS website. With an exclusive listing both parties will not have full representation, either representation will be dual agency representation or the buyer will be unrepresented and treated only as a customer.

The third type of listing is an open listing where an owner of a property informs a real estate agency (maybe more than one agency) that their property is for sale. This is usually verbal not a formal contract so most agencies will handle this kind of listing with caution or most likely not bother with it at all. This is not common or recommended.

An open house, a sign and a lockbox are optional- both the open house and the sign maximize the exposure the home will have to potential buyers. These marketing tools are all the sellers’ option however; some agents may choose not to contract a listing without the use of these tools. Regarding the MLS lockbox (real estate key box) showings; when a lockbox is on your home agents do not access this as needed, rather appointments will be made to view at your convenience. You do not have to leave your home when it is being shown however; buyers are more comfortable when the home is vacated.
If you make the decision to have an “Exclusive listing agreement” then only the listing agency has the right to sell your property and provides no right or opportunity for any other agents to assist in the sale, or bring a buyer. You will likely have less activity and more privacy however; this will be likely be a trade off with longer time to sell and possibly not the best price. An MLS listing agreement always includes the right of all New Brunswick Real Estate Association licensed agents to participate in the sale of your property. A cooperative effort will result in your property gaining greater exposure because it reaches the majority of the real estate professionals and buyers. With an MLS listing, you are more likely to experience a shorter time on the market and true market value for your home.

Good Luck Selling
Rebecca