3 Types of Real Estate Agent Listing Agreements

now i used to ask my students all the time what are you most afraid of when it comes to your brand new real estate career what is the one thing that intimidates you with your brand new real estate career and the answer i commonly get often is contracts so today it's a bonus one today today we're going to talk about contracts particularly the residential listing agreement you want that listing you got to be prepared and you have to understand what type of listing agreements are out there today just for you we're going to have the residential listing agreement stay tuned glad you made it to today's episode today's going to be a beefy one it's going to be solid and i want you to learn the whole the whole listing agreement you're going to go visit the seller and you're going to make your presentation you're going to want to win that listing because the minute you send that listing contract with the seller you're guaranteed almost guaranteed a commission again it all depends on what contract you sign on what residential listing agreement you have your seller signed but before we go there where do we find these listing agreements where do you get them where do you find them over at staples do you find them at rite aid do you buy them online you get these contracts all the contracts all the documents required for a real estate transaction at the california association of realtors now the minute you become a member of the california association of realtors you can have access to every single document the listings the the disclosures you name it you're going to find it there which is a beautiful thing because that's going to be your tools so let's start off with the residential listing agreement number one we call that the exclusive authorization and right to sell that is a beautiful contract now why is that such a beautiful contract because the name of the game ladies and gentlemen is commitment commitment between you and your seller you both are committed to each other and that contract is the most committed you can be with each other when you sign that on behalf of your brokerage and your seller signs that you're saying i'm with you 100 what a beautiful relationship can flourish with that contract now what does that mean it means this it means the seller saying mr or mrs agent thank you for representing me i will gladly sign this residential listing agreement exclusive authorization and right to sell which means all you have to do mr or mrs agent is bring me a buyer who's ready willing and able and i will pay you the commission that we agreed upon now let me make this clear in a balanced market the seller will typically stick with me in a balanced market the seller will typically pay the listing agent six percent commission of the sales price you with me like you're smart you're a business person you have a real estate license so they're giving you this pot of gold this amount of money to go find them a buyer like you have to utilize this this commission carefully that's 60 000 now the first thing you're gonna do of course is you're gonna place it on the mls and you're gonna tell all the buyers agents all the buyers agents hey come on and bring me a buyer in a sense you'll give them three percent and you'll keep three percent no matter what you're getting paid man no matter what you're getting paid let's assume your seller comes home one day from work and they give you a ring they give you a phone call and they say hello mr or mrs agent how are you this is mr seller i want to let you know that i was talking to chuck a good friend of mine at my job and he said he'll buy my house so mr message agent i don't need you i don't have to pay you commission ah wrong the minute you sign that exclusive authorization and right to sell it doesn't matter who brings you the buyer you're getting paid this is why that contract that listing that exclusive authorization right to sell is beautiful it's full commitment anytime anybody brings you a a buyer you're going to handle it on behalf of the seller whether it be another agent who brings you a buyer or the seller themselves who brings you a buyer it's a beautiful day because you're guaranteed commission got it that's exclusive authorization and right to sell nice and simple the second most popular one is called exclusive agency exclusive agency now listen to the word there exclusivity exclusivity which means you're going to represent the seller and do the best you can for the seller however there's one phrase missing and that phrase that's so important that's missing is authorization of right to sell which means if the seller themselves bring a buyer the same scenario we just discussed seller goes to work seller comes home seller calls you and says i got a buddy chuck who wants to buy my property i didn't use your services after all the seller has the right to sell the property not use your services and guess what you did not earn a commission that's the biggest difference authorization and right to sell you don't have it if you haven't signed the exclusive agency so my recommendation of course is don't use the exclusive agency stick to the residential listing agreement that's titled exclusive authorization and right to sell that will guarantee you commission if you sell the property utilizing that commission as as a bonus for those out there who have buyers that might be interested in your listing now the third type of listing is the open listing the open listing now that's almost in my opinion laughable another listing is a seller who says hey all you agents all you agents out there come on in i want to sign a contract with you i want to sign a contract with you mr asian how about agent number two how about agent number three four five six seven eight nine ten all of you have to dedicate yourselves to me all of you have to go out and promote my property advertise if you want spend money if you want spend time if you want but i'm only paying one the one that brings me the buyer is gonna get paid so now you as an agent are competing with many other agents are you going to want to spend time and money on somebody who's not willing to commit to you i'm a seller who says i'm i want to see several people what kind of a relationship is that an open relationship let's see tons of people it's a seller saying i like to hire you you you you you you and you and the only one i'm gonna pay a commission is to the one that brings me the buyer let's review these one more time nice and simple the name of the game is commitment name of the game is having a commitment with your seller 100 first type exclusive authorization and right to sell doesn't matter who brings you the buyer long as you find somebody who's ready willing and able and you utilize that commission amount by splitting it with somebody else so say hey if you bring me a buyer agent bring them on down if we get into contract and close the deal i will give you a portion of my commission seller brings you a buyer seller says hey i got chuck who wants to buy the house from my job you tell your seller thank you mr seller i appreciate that have chuck contact me and i will take care of that also still valid contract exclusive authorization and right to sell beautiful should be the only one you should be using should be the only one that you use during your real estate career exclusive agency which means that the seller can compete with you now why would you want the seller to compete with you well that's what the exclusive agency allows when you see that question on the state exam remember exclusive agency the seller has a right to compete with you now don't be fooled exclusive agency an exclusive authorization right to sell they both start with the word exclusive don't be fooled key word here is right to sell one of them commits the other one not so much last but not least the third one open listing that's a free-for-all man that's the seller having the ability to hire 10 20 50 several agents and saying help me out go ahead and promote my property however the only one that's gonna get paid is one that finds that buyer for me somebody who's ready willing and able those are the three most popular listing agreements in the real estate world now where can you find them where can you find these listings at the california association of realtors along with all the other disclosures required for a real estate transaction hope this helps you out if you have any questions regarding this leave them down below but again it's all about commitment it's all about commitment now let me share something else with you in my 25 year real estate career i've only had one person one person and i won't call them a client because i didn't take the listing who wanted me to agree to an open listing i prefer commitment i prefer commitment so you guessed it i declined that listing i said i do not want to get involved in an open listing i prefer commitment rarely does it happen got it fantastic i hope this helps you out hey let me remind you if you're interested in your real estate career every first week of every month we have free webinar classes right now take advantage of it check out our website www.ca realtytraining.com hope to see you next week you

Channel: US Realty Training

Views: 13,115

Keywords: real estate license, real estate agent, ca realty training, real estate school, real estate, california, realtor, real estate training, online real estate school, open listing, exclusive agency, exclusive right to sell, right to sell, listing agreement, real estate listing agreements, real estate agent listing agreements, listing agreement real estate, listing agreement real estate california, california listing agreement, listing, agreement, types of listing agreements, contracts

Id: DzLuCd75zbc

Length: 8min 39sec (519 seconds)

Published: Mon May 10 2021