Open Agent or exclusive agent

Orange County, California
Buying & Selling Real Estate
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Open Agent or exclusive agent

Peter Sik
Los Angeles, CA · Member since 2016 · 134 posts · 15 votes

Asked 2 agents, they said you have to have exclusive listing agent, and there is no such open agent. 

According to what I found:


"What does open Agent mean?When the listing is open, the agent who makes the sale is paid the commission, not the listing agent.
If the homeowner finds a buyer without the assistance of an agent, no
one is paid a commission. If the agent has an exclusive right to sell,
the agent earns a commission regardless of who sells the property."

That is not true.

I would like to know:

1. Why they don't know or not willing to tell there is an open agent?

2. Does it really that much work and spending to list a property?   

3. What is the pro and con for exclusive and open agent on this marketing situation now?

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Winston CovingtonPro Member
Realtor · Santa Ana, CA · Member since 2014 · 131 posts · 111 votes
3y

Speaking from the point of view of a professional 37+ year veteran of real estate…I have never taken an open listing in my career. A Realtor that is dedicated to representing his / her client in the sale of their home to the best of their ability will invest thousands of $ in the marketing of the property as well as a considerable amount of time, energy and talent. With years of experience, knowledge and a high level of integrity…a professional Realtor earns his commission and then some for the level of service that they provide their clients. An exclusive right to sell listing provides the assurance that if the listing agent performs well and his marketing efforts produces an acceptable offer…the agent will be paid for their services.

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  • Nate Sanow
    I​nvestor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
    3y

    2. Yes it is a lot of work but it’s not the work of just posting it online. It’s the knowledge, time, skill, negotiations, etc.

    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Use a exclusive agent, I personally avoid opendoor properties just because the process is so automated. You talk to a robot and get told to submit an offer, no verbals or negotiations prior. Takes the fun and human touch out of real estate 

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  • Winston CovingtonPro Member
    Realtor · Santa Ana, CA · Member since 2014 · 131 posts · 111 votes
    3y

    Speaking from the point of view of a professional 37+ year veteran of real estate…I have never taken an open listing in my career. A Realtor that is dedicated to representing his / her client in the sale of their home to the best of their ability will invest thousands of $ in the marketing of the property as well as a considerable amount of time, energy and talent. With years of experience, knowledge and a high level of integrity…a professional Realtor earns his commission and then some for the level of service that they provide their clients. An exclusive right to sell listing provides the assurance that if the listing agent performs well and his marketing efforts produces an acceptable offer…the agent will be paid for their services.

    1Reply
  • Nicholas Coulter
    Real Estate Agent · Southern California · Member since 2019 · 681 posts · 281 votes
    3y

    @Peter Sik When ou are signing an exclusive agent relationship document you will likely get the right agent to put the  needed work to list your property. Opening it up may work for some but valuable agents know their worth and wont provide all those services just to get push out by someone else. 

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  • Robert Reynolds
    Real Estate Agent · Los Angeles, CA · Member since 2019 · 302 posts · 163 votes
    3y

    Peter you can have an open agent relationship, but no top agent will go for that. You will end up getting some desperate brand new agent to represent you, when you want a well established agent who has been through the process. You get what you pay for and often a good agent will make you more than their weight in gold. Please reach out if you need any help. 

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  • David Friedman
    Property Manager · San Bernardino, CA · Member since 2014 · 473 posts · 238 votes
    3y

    Most agents will not want to invest their time and capital for an open listing unless they are 100% confident they already have a buyer for the property. It is too risky and usually it means the seller will not be a good client. It definitely doesn't start the agent/seller relationship on a foundation of trust. What I have done with sellers in the past is if they have a few interested buyers already on a list to see the property, we can add those buyers as exclusions to the contract.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    3y

    Why would an agent spend potentially a couple thousand dollars marketing the property for someone else to sell it? 

    Seems like a way to put yourself out of business pretty quickly.

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  • Alex Larcheveque
    Real Estate Agent · Rancho Cucamonga, CA · Member since 2018 · 82 posts · 36 votes
    3y

    1. Why they don't know or not willing to tell there is an open agent?

    Open listings are pretty uncommon to see. That being said, your realtor definitely should have known what open listings are and should've been able to explain it to you. 

    Not willing to tell you is a different story altogether. If he was not willing to tell you, it's because there's a vested interest in the realtor to have an exclusive listing. After all, if the home sells, your realtor wants the commission check. 

    2. Does it really that much work and spending to list a property? 

    Yes, there's a ton of work to market your property properly. Staging, marketing materials, holding open houses, attending private showings, doing research for comps nearby, listing the property at the correct price. A realtor will do this before getting paid, so keep that in mind.

    3. What is the pro and con for exclusive and open agent on this marketing situation now?

    Here's a good link that lists the pros/cons of both exclusive and open listings. You'll probably be using an exclusive listing 99% of the time.

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    3y

    @Peter Sik

    Exclusive Agency Listing: A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker if the property is sold through the efforts of any real estate broker.

    5 Reasons Exclusive Property Listing Benefits Sellers

    1. Maximum Exposure to the Right Buyers
    2. High-Quality Offers
    3. Simplified Negotiation – No Haggling
    4. Accurate Information – Accountability
    5. The Relationship

    Good luck!

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  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    Over the years I have learned that I put a lot of effort for each client (from what others have told me more than the average). I'm talking phone calls, open houses, negotiations, pushing the envelope to get the best price and terms for my clients, etc. On the listing side I also spend money on professional photography, floor plans, etc. Because of this, I only have so many hours in the day. I have to then prioritize my clients on who I'm going to focus my attention on. 

    If a Seller didn't want me to represent them exclusively, then I'm spending hours on a maybe commission versus my other Sellers who are expecting me to. 

    So the question I would have is why wouldn't you want someone fully dedicated? Of course unless you are okay with not being a priority then maybe or if you were willing to pay a higher than average commission to compensate the risk of not closing a deal.

    The perception of Realtors needs to change and be viewed more of a consultant than a salesperson. I think you will find what you are looking for but unfortunately will pay a price for it. I took over a listing from REX Real Estate where it sat on the market with no activity, listed it for $25,000 higher, and got multiple offers.

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