Dear Heather

I am selling my house. What’s the difference between a ‘sole listing’ and an ‘open listing’, and which is best for me?

Seller, Hamilton Parish

Dear Seller

An open listing is when you list your house with one or multiple agents and retain the right to sell it yourself.

A sole listing is when you list it with one experienced professional agency and let them handle everything for you.

Some sellers believe that an open listing is more beneficial than a sole listing in achieving the sale of a property because listing with multiple agents means better exposure and more effort. In actual fact a sole listing is the best way to go. Let me explain why:

A real estate agent works on only commission and does not earn a salary, so accepting an open listing on a house is a bit like playing Russian Roulette, you might be ‘lucky,’ and you might not. There aren’t many professionals out there who are willing to risk the amount of time, effort, energy, cost and service and not get paid for it. With this risk may come hesitation in providing a full spectrum of real estate services, such as marketing and structured activity updates, as an agent fears not being compensated for them.

If you were employed to do a job for someone, would you provide 100 percent of your service, time and effort knowing that you may not get paid for it? Also, listing with multiple listing agents could potentially be an unpleasant experience for you, the seller, as you do not have a single point of contact and advisory. Your communication and feedback can get confusing when coming from more than one agent, and your activity tracking is skewed as you will not have one agent keeping track of all activity on your listing. Lastly, while a seller may perceive their multiple agent status as a positive, ask a buyer what they perceive. We have; and we found that the majority of buyers feel a seller is ‘desperate’ and ‘confused’.

A sole listing agreement, on the other hand, provides a seller with everything that an open listing agreement does, plus way more, for the same commission and at a much higher level of service. A sole listing agreement guarantees that the listing agent and her hard work will be rewarded. A sole listing agent will share your property information with all other reputable realtors on your behalf in order to get it sold!

With this in mind a sole listing agent is going to give you 110 percent in commitment, service and effort not only to get that property sold, but to assist a seller every step of the way. The sale of a property is not an event, it is a process. It is not only about selling your home, but about having someone experienced and professional to hold your hand every step of the way. An agent’s purpose is to make this experience as smooth, easy and stress-free as possible for the seller. Doing this will include — a marketing plan from the initial listing stage to guide expectations, monthly activity updates, your own personal real estate advisor who you can go to with questions and concerns and who will bring to you suggestions and market knowledge, implementation and control of the property showing process. Choosing the right sole listing agent will mean follow-up at every stage until closing, and maximum exposure via all marketing resources that the listing agent possesses — including sending the listing to co-broking agents island wide to help sell! Your sole listing agent may not be the person that sells your home, but they most assuredly will be the reason it sells! Make sure you choose carefully. Your sole listing agent must be someone you trust and must be able to prove that they have the knowledge and expertise to help you navigate the entire transaction; not just the marketing of your home.

Heather Chilvers is among Coldwell Banker Bermuda Realty’s Leading Sales Representatives. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332 1793. All questions will be treated in confidence.

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