WHY YOU NEED AN EXCLUSIVE LISTING

MELANIE KISHK

SUPPOSE YOU OWN A FULLY STOCKED CLOTHING STORE ON MAIN STREET, AND A FRIEND APPROACHES YOU ONE DAY ASKING YOU TO SELL HER BLOUSES FOR $100 EACH. THE SHIRTS SEEM OVERPRICED, BUT SHE SAYS YOU WILL EARN A COMMISSION ON EACH SALE. THEN SHE TELLS YOU SHE’S ALREADY MADE THE SAME DEAL WITH SIX OTHER CLOTHING STORES IN TOWN. YOU WILL BE COMPETING WITH ALL OF THEM TO SELL THE SAME MERCHANDISE. DO YOU ACCEPT THE DEAL?

I hope your answer is “No!” Your main goal in sales is to turn your inventory into cash. If you are competing with everyone else in town to sell the same merchandise, chances are slim you will come out a winner. You’re much better off if you are the exclusive marketer of a product.

My husband, Jack, and I use this example to explain the importance of having an exclusive listing. We want to be the hired real estate agents with the legal right to sell a piece of property. We need an agreement between us and the seller stating that we have the sole right to market the home and are guaranteed a commission when the property sells. Once we have that agreement, we can properly manage the listing and all of the buyers’ agents who would like to show it.

Some property owners are leery of listing a property exclusively with one realtor. Instead, they want to sell their homes as open listings, because they worry about missing an offer from another agent, or they want to have the option of selling their property themselves—for sale by owner (FSBO) to avoid paying a commission. In reality, it’s in their best interests to list exclusively through us. Here are several good reasons why.

Owner’s lack of experience – The average homeowner has no experience selling a home. There can be hundreds of details involved in listing a house, from timing to renovations, to staging, to marketing to photography. There are questions that they don’t know they should ask, such as “Are there violations?” or “Is there a clear title?”

We know the right price to ask for your home – We are seasoned professionals and know how to read the market to come up with the perfect asking price for your home. We find that most sellers price their houses too high and then have to slash that number when they realize their mistake, costing them thousands of dollars.

We know how to market your home – If you are a homeowner trying to sell your house yourself, how do you market it? Only agents can list properties on a Multiple Listing Service (MLS), the primary, private database where realtors look for properties. Since realtors are constantly sharing information on an MLS, they reach many more potential buyers.

We won’t panic when chaos sets in – An open listing allows many agents to list and show the house, each one of them trying to get the sale. There can be different prices, different hours for showings, and different agents showing up simultaneously. We once saw a house with more than 20 agents trying to show it. It was like a three-ring circus, and the homeowner was overwhelmed.

FSBOs may not know which offer to accept – It’s exciting when you get an offer to buy your home, however it’s confusing when you get a dozen, each with its own requirements.

“I’ll give you $1.9 million, with a conventional loan, an appraisal, and contingencies.”

“We can’t offer more than $1.7 million, but we can put 50% down.”

“We can do $1.6 million in cash. Let me know by this afternoon.”

“We just accepted an offer on our house and can give you $1.75 million guaranteed in ten days with no contingencies.”

Do you know which offer is best? Most sellers don’t, but we do—because we have years of experience.

Selling a home is time consuming – Most real estate agents spend hours on the phone or emailing or texting, or conferencing with clients. We are available 24/7 to answer questions. We spend money on photography, videography, and marketing because those things help us earn a profit when a property sells. We are laser-focused on selling a piece of property for the best price possible in the shortest time, and our loyal clients keep coming back time and again.

When a seller decides to sell their house on their own, that FSBO listing is like the blouse in the clothing store. Where’s the benefit to us in sinking a ton of time and resources into a potentially overpriced property we may or may not be able to sell? We may put some token effort into selling the property if we have the time, but it’s not a priority.

Buyers prefer exclusive listings – Experienced buyers feel more confident making an offer on a property if they know an agent has an exclusive listing. It tells them that a professional real estate expert will be there for them when issues come up. And issues always come up!

Exclusive listings save money – This really is the bottom line. Most people listing a property FSBO may think they are saving money. They forget the importance and expense of marketing and listing, photography, staging, closing costs, commission to the buyer’s agent, taxes, attorney’s fees, and more. Some of these costs may be included for free in an exclusive agreement with an agent. If they aren’t, the homeowner pays for them.

A FSBO listing may be able to avoid paying a percentage of the sale that would have gone to the listing agent, but according to the National Association of Realtors, FSBO homes sell, on average, for 11% less than homes sold by agents.

You trust your car repair and your dry cleaning, and your appliance maintenance to professionals. You ask doctors for medical advice and lawyers for legal advice. So why would you think you should sell your home without the expertise of a listing agent? It’s most likely the most expensive thing you will ever sell.

Let a reputable broker do what she does best—sell your house for the best price quickly without the stress involved in a private sale or a three ring open listing circus. Buyers and sellers both want to complete a deal with good will and good fortune. An experienced and professional real estate broker can help buyers and sellers reach that goal.

Century 21’s Melanie Kishk is a full-time Broker/Owner. Her team consists of top performing real estate agents serving Brooklyn, New York and the surrounding communities.