Types of Listing Agreements
listing presentation
A listing presentation is your opportunity to pitch yourself and your services to a seller. Think of it as a job interview in which you are applying for the opportunity to sell someone's home. You'll need to gain the seller's trust by convincing them that you are trustworthy, hardworking, competent, communicative, honest, and have pretty much every good personality trait under the sun. But you'll also need to present a suggested price range to them based on your expertise of the local market.
net listing
A net listing is a controversial form of agent compensation that is discouraged in many states and illegal in others, including the great state of Georgia. This type of compensation agreement is one in which the seller pre-determines a specific amount that they will accept on the sale of their property. Anything that comes in over and above that amount is considered earned compensation by the broker.
open listing
An open listing is a nonexclusive listing agreement that gives multiple brokers (and owners themselves) the right to sell a property. The individual who is considered to have procured the cause of the sale is the one who will receive the commission.
marketing plan
During the listing presentation, you'll outline your marketing plan to potential seller clients. What's a marketing plan? A marketing plan is the sales and advertising plan you'll employ to attract a buyer for the seller.
Exclusive agency listings
Exclusive agency listings combine elements of open listing agreements and exclusive right-to-sell agreements
Exclusive right-to-sell listings
Exclusive right-to-sell listings are the most common and most preferred (by brokers) type of listing agreement. This type of agreement states that as long as the property is sold within the stipulated time frame of the contract, the listing broker named in the contract will receive a commission for their role as the agent in the real estate transaction. It does not matter how the sale is secured, whether by the named listing broker, another broker, or by the owner finding a buyer without the listing broker's assistance. Regardless, a commission must be paid to the listing broker who holds exclusive rights to the commission.
Procuring cause
a legal term used in some scenarios to determine whether an agent has a right to a commission. Procuring cause is the defining action or actions that brought a buyer to purchase a property.