Things Homeowners Should Know When Selling a House:
For homeowners who wish to sell their house and engage the services of a real estate consultant / agent / negotiator, there are important considerations to keep in mind. The homeowner needs to sign an appointment letter with the real estate consultant, and generally, there are two types of appointments: "Exclusive Listing" and "General Listing," each with its own advantages and disadvantages.
Exclusive Listing:
"Exclusive Listing" means that only one real estate consultant is appointed to sell the house, and no other real estate consultants can be appointed by the homeowner. If there was a previous "General Listing" appointment, it is now canceled. Usually, real estate consultants who were previously under the "General Listing" appointment will withdraw their advertisements.
Advantages:
- The homeowner deals with only one real estate consultant.
- It is generally easier to achieve the desired price set by the homeowner.
Disadvantages:
- There is a possibility that the house may take longer to sell since fewer real estate consultants are appointed, resulting in fewer advertisements.
General Listing:
"General Listing" means that the homeowner can appoint as many real estate consultants as desired to sell the house. The real estate consultant who secures a buyer first will handle the sale of the house.
Advantages:
- The more real estate consultants appointed, the more advertisements for the house, increasing the chances of a quicker sale.
Disadvantages:
- The drawback lies in the pricing of the house for sale. Real estate consultants may be able to find buyers quickly but at a lower price than what the homeowner has set. They may compete to bring in buyers, even if the offered price is lower. However, it is ultimately up to the homeowner to accept or reject the buyer's offer.
- The homeowner needs to deal with many real estate consultants.
Conclusion:
Homeowners need to be aware of the type of appointment given to the real estate consultant to avoid confusion. For instance, appointing multiple real estate consultants but signing an "Exclusive Listing" without realizing it, or signing an "Exclusive Listing" after already appointing multiple real estate consultants under the "General Listing," will lead to the cancellation of the previous "General Listing" appointments. This would usually result in the real estate consultants withdrawing their advertisements.