Exclusive and Non-Exclusive Listing Contracts
Whether you want to sell or rent out your property, as a landlord you are supposed to authorize the agent to market the property which is through a contract called Form A. Apart from the other fields that include property details, listing price, contract tenure and status of the property there is another field that implicate the owner to assign a property exclusively or non-exclusive to an agent.
Not only these contracts are required by the agencies to obtain advertising permit on Trakheesi, but using these contracts the agents also verify the authenticity of the property on online portal which gives better integrity to the listing, thus resulting in qualified leads which has higher closure ratio.
It has been long debated in the industry specially by the fellow relators that exclusive contracts are much more worth working upon than non-exclusive as it motivates an agent to push the listing through across all the portals and reach out to potential buyer and even the network knowing that the commission is solely going to be earned by the agent.
Hence, an exclusive contract creates two-ways commitment from the owner to agent and vice versa to ensure that the property is marketed more aggressively in full throttle.
Alternatively, the other option is non-exclusive contract in Form A, where an owner of the property is not bounded with only one agent exclusively, and can give out the property to more than one agent who would be marketing the property to reach out to potential clients. The latter option suits better to the owners who possess property that are widely in demand, as the reach is relatively higher here.
Although, both options are completely viable in the industry and are being practiced widespread. However, what we suggest our clients is, if they have a luxury property that is high-end its best to give it out exclusive to agents, and if they have a property that has alternate options available in the market already, its best to give it out non-exclusively. Having said that, the listing of property differs totally from case to case basis, on which we suggest to consult agents appropriately.
For more information about exclusive and non-exclusive contracts while listing properties, please feel free to get in touch with Homes 4 Life Real Estate.
