Why exclusive listings are not to the benefit of the seller
Exclusive listings are a thing of the past, here is why they are not to the benefit of the seller and why as a seller you should'nt consider them.
First off, what is an exclusive listing? An exclusive listing is a listing where only the listing agent has exclusive right to advertise and sell that listing. There is no language in the contract that provides for a buyers agent to operate or earn a commission with the listing and theres no provision to have the listing marketed on the MLS (Multiple listing service) which is a realtors number 1 tool for advertising and attracting buyers.
A standard listing contract allows your listing agent to advertise on multiple portals, cooperate with a buyers agent and even split the commission with a buyers agent operating on behalf of the buyer party in the transaction. Why should you, the seller, care? Well if your listing agent doesnt have the provision or intention to advertise your property in the places MOST buyers are looking for real estate then how are they effectively marketing and 'selling' your property? If your listing agent has no intention of cooperating and splitting commission with a buyers agent how does that provide buyers working with an agent an avenue to purchase your property?
Really, exclusive listings are effective at ensuring two things: The listing agent will get both ends of the sale commission and the listing agent will operate as both the seller and buyers agent. This means that not only will it most likely take longer to achieve the sale of the property, but you as the seller will only get half the representation in the negotiation and overall transaction you expected. When an agent works on behalf of both the buyer and the seller, in my opinion, both clients lose. Buyers and sellers both deserve seperate representation. You wouldnt feel comfortable in court knowing your lawyer represents both you and the individuals across the aisle, why would you feel comfortable knowing your realtor is operating in such a manner? In many jurisdictions in Canada dual agency in real estate is outlawed, illegal. Which has pretty much rendered the exlcusive listing ineffective.
Ensure your listing agent represents you and your best intentions in the sale of your property!