Business
What Is an Exclusive Right To Sell in Real Estate?
When you try to sell a home, one of the first things you’ll notice is how much paperwork there is.
It all starts with your contract with your realtor. One of the things that you’ll notice in this contract is the exclusive right to sell, which is in place to protect both you and the agent.
Basically, the exclusive right to sell is an agreement that you’ll only work with your chosen realtor. It also states that you’ll pay the realtor regardless of who ultimately finds a buyer for the home.
In this post, we’re going to take a closer look at this agreement and determine who really benefits from it. If you’re feeling in the dark with regards to the whole home selling process, keep reading, and we’ll clear up this one important matter.
Your Exclusive Right to Sell Guide
When you make an agreement with a realtor to exclusively use their services, you’re putting a lot of trust in them to get the job done. An exclusive right-to-sell agreement period is generally somewhere between 3 and 6 months, which is a long time in the real estate world.
The average home stays on the market for about 40 days, depending on various market conditions. If you’ve signed an agreement with your realtor granting them the exclusive right to sell and your home is still on the market in 6 months, that’s not great for you.
The good news is that your agent will want to make a deal within the duration set out in the contract. When you take them on, they should list the property and start marketing it within days. They’ll answer emails, arrange viewings, negotiate, and handle all of the paperwork as well.
In return, you’ll give your realtor a 5-6% commission on the sale of the home.
Exclusive Right to Sell Advice
The best advice we can give regarding the exclusive right-to-sell agreement is to choose a realtor that you can trust. It’s also a good idea to look over the contract before signing it to ensure you’re okay with the length of the right-to-sell clause.
Length is generally determined by market conditions, but you shouldn’t be locked into a contract with an underperforming agent. The best time to ask about canceling the contract is before you sign it.
What Happens When It’s Over?
If the contract runs its course, you’re free to take whatever action is necessary to sell your home. The fact that it didn’t sell isn’t always due to the agent, as market conditions are always apt to change and make things more difficult.
When you’re on a deadline to sell your home, sometimes it’s better to sell to a property investor who says, “we buy houses in any condition, as-is, with no agent fees, commissions, or closing costs.”
Do What’s Best for You
Now that you understand a bit more about the exclusive right-to-sell aspect of realtor contracts, you can make the best decision for you and your family. If you want to test the market and see how much you can get for your home, a realtor is probably the way to go. When you need a quick sale, it might be best to forego a realtor and find an investor.
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Kenneth is a proud native of sydney, born and raised there. However, he pursued his education abroad and studied in Australia. Kenneth has worked as a journalist for almost a decade, making valuable contributions to prominent publications such as Yahoo News and The Verge. Currently, he serves as a journalist for The Hear Up, where he focuses on covering climate and science news. You can reach Kenneth at [email protected].
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Harper Harrison is a reporter for The Hear UP. Harper got an internship at the NPR and worked as a reporter and producer. harper has also worked as a reporter for the Medium. Harper covers health and science for The Hear UP.
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