Exclusive Right To Sell

Definition of "Exclusive right to sell"

Tony Viejo real estate agent

Written by

Tony Viejoelite badge icon

American Realty of Bay County Inc

The Exclusive Right to Sell Listing is a type of Listing where the Listing Broker/Agent wins his/her commission even if he/she wasn’t directly responsible for the sale.

Let’s paint a scenario:

Say home seller John Smith wants to put his Beach House on the market. He decides to ask for the services of big-time broker Bob Taylor because Bob has all the best clients on the coast. Having such a great reputation on that community, with such an established clientele, Broker Bob can ask Home Seller John for an Exclusive Right to Sell agreement where even if another agent – or Home Seller John himself! – makes the sale, Bob still gets his commission.

Why would Home Seller John agree to that?”, you ask.

Well, keep in mind that influence is everything in the real estate business. Having Broker Bob’s “brand” on the property listing brings a sort of gravitas and awareness that helps to sell the house even if the final offer isn’t directly proposed by a Broker Bob client. Think of it as a license to use the Broker’s name to create a buzz about your property. The Broker deserves compensation for that even if he doesn’t bring the winning offer himself, right?

So that is why the Exclusive Right to Sell Listing exists: to make sure the prestige of a real estate Broker or Agent is fairly recognized as an asset to the property.

RealEstateAgent.com ADVICE:

Exclusive Right to Sell Listings are not to be confused with Exclusive Agency Listings. Check our Glossary Terms for other types of Listings such as Net Listings, Open Listings, and Multiple Listings.

And remember: Listings are agreements between Home Sellers and Brokers, so no side can force the other a specific kind of Listing. Don't hesitate to find the right real estate agent for you in our Real Estate Agent Directory.

Comments for Exclusive Right To Sell

Michael Michael said:

are net listings illegal in Michigan

Dec 28, 2020  06:30:28

 
Real Estate Agent

Hey, Michael! Please go and check our glossary term about net listing. Surely you will find your answer there.

Jan 04, 2021  08:12:55
 
 
image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Kind of siding for wood frame houses where the joints in the usually vertical siding are covered by narrow strips of wood called battens. The battens are nailed over the joints. ...

The net operating income definition is the total profit generated by a business or real estate development after the necessary operating expenses are taken out. In order to determine the ...

In short, an overage means a surplus or an excess of money. An overage can present itself at a property at an auction where the asset has gone over the asking price. Suppose there’s a ...

The term effective interest rate is the actual return from a savings account or any investment where you pay interest when considering the effects of compounding costs over time. Through an ...

A cooperating broker or agent defines a real estate broker who helps another broker in a private property transaction. Typically, the cooperating broker represents the seller and is ...

An estate which descends to heirs in perpetuum. In an estate of inheritance, the current tenant not only has the right to enjoy the property for life, buy his or her tenancy rights pass to ...

Name given by the Realtors National Marketing Institute which is affiliated with the National Association of Realtors. ...

The term mortgage amortization is the steady switch occurring to each mortgage payment between how much interest is covered and how much principal each month. Simply put, mortgage ...

See effective tax rate. ...

Popular Real Estate Questions