What is an exclusive listing worth to an agent?

Question

Do real estate brokers ever pay sellers for exclusive listings?

I ask the question, because I had a property on the market...the listing expired without selling...and now I'm getting a bunch of calls from agents who troll MLS for expired listings.

I have something they want, and I'm wondering how much they want it. What is the value of an exclusive listing?

Hypothetically, let's say there was a non-refundable monthly fee paid by the broker to the seller for the exclusive right to sell a property. Agents would not take listings they're not confident they can sell. Agents would be motivated to sell quickly or release the listing. Sellers would be compensated for a listing that isn't moving.

Obviously, agents won't like the idea, but I'm just curious. Does it ever happen? If not, why not? If there's a demand for a seller's listing, why should the seller give it away?

Looking forward to a lively discussion.

Wayne Brooks · Answer

Not going to happen....not with any competent broker.....especially on expired listings.....the only reason it didn’t sell was because it was over priced in the first place....or maybe a discounted commission was offered to the buyer agents.

Russell Brazil · Answer

I imagine you would attract the same caliber of professional as a lawyer who was willing to pay the client for the right to represent them in court.

Russell Brazil · Answer

Loss leader to guaranteed revenue source. Thats the difference. Here is a $500 phone, now give me $3600 over the next 36 months.

Ill give you $500 if you enter into a contract to return $3600 to me.

Russell Brazil · Answer

The whole question just doesnt make sense.  Why would any professional pay to do work for a client? Why would Zillow provide you a service and then pay you for that service? How would any business survive by paying their clients do work for them?

Nathaniel Cheek · Answer

@Pearce G.

As an agent I hate this idea. As someone who wants to invest I like it. I would never do this as an agent. Clients are often people who enter into agreements with and we don't know them very well. How do I know you're not entering this agreement just to make a few bucks during your vacancy? Are you willing to do a price reduction? Maybe after you make up the difference in what I've already paid. Too many variables for me without an air tight agreement.

Pearce G. · Answer

@Russell Brazil

Why will Verizon give me a free phone to switch from AT&T?  Because they can lock me in to an exclusive agreement to provide cellular service.  Why will a bank give me $100 to open a new account?  To acquire a new customer.  Call it a loss leader...a marketing expense...cost of doing business.  The downstream revenue is worth way more than the up front cost.

If I'm an agent, and I stand to earn a 30K commission on a 1MM property, would I pay a seller $1/month to lock up the exclusive right to earn that 30K?  If it's legal, you bet I would.  Would I pay $10/month?  Yes.  How high would I go?  I don't know...depends on how quickly I think it will sell and at what price.

I just don't understand why an agent or brokerage will routinely print promotional materials, prepare market reports, spend hours touring homes and pitching to potential sellers, send mailers, cold call, etc. all in the interest of getting new listings, yet it's unheard of to incentivize a seller directly for the exclusive right to sell their home.

I wouldn't expect agents to be receptive, but I thought it was a worthy topic.

Natalie Schanne · Answer

@Pearce G. - I’m sorry your house didn’t sell. If you want to sell it, you’ll need to improve the condition or reduce the price or get a competing marketing professional. I offer professional photos, basic staging, open houses every two weeks and reasonably staged price cuts and I’ve sold every property I’ve ever listed. My rehabs have all been under contract at or above projected ARV within 3 weeks of hitting the market.

Honestly I doubt if an agent was willing to pay you like $200/mo for your listing it would be worth it for you because your holding costs are higher. Like if I would pay you $200/mo for a 6 month contract and still didn’t sell if you’d probably be worse off than I in terms of money lost/wasted. I’d consider paying a seller to list their rentals because those are the only leads Zillow gives me for free and I’ve turned every listing into two or more rentals. Zillow sells the for sale listing leads for $30-50 each to its premier agents.

Pearce G. · Answer

@Russell Brazil@Nick C.@Caleb Heimsoth@Wayne Brooks I appreciate the feedback.

Don't get me wrong.  I'm not proposing or advocating.  And I'm not looking to "sell" my listing.

I'm just curious why market forces seem not to come into play if there's a strong demand for new listings.  Ok, so it's beneath the dignity of a reputable agent.  Is it prohibited by law or regulation?  Is it an ethics violation?  Or do the economics just not work?  What keeps Zillow from paying a seller to list exclusively on their site?  Why will that never happen?  Beneath their dignity?

Caleb Heimsoth · Answer

@Pearce G. Not sure how lively this discussion is going to be.  You’re going to have everyone and they’re dog telling this will never happen

Nick C. · Answer

I'd be afraid of an agent who is desperate enough to pay for a listing.

What is an exclusive listing worth to an agent?

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