How does work exclusive listing contracts? That’s a frequently asked question because there are a lot of doubts and questions in this Real Estate world. In America, it’s more common than here in Spain. I’m personally hoping that Spain will be there in a few years as well.
In Spain, everyone can sell houses, even when it’s not your profession. You don’t need a real estate license like in America, so what happens, is that a lot of people say they have been working in Real Estate for a few weeks or months and can do it by themselves.
Click here to Read: 10 Mistakes To Avoid When Selling Your House Yourself.
Open Agencies or Exclusive Agencies
In Spain, there are two different types of agencies. Open and Exclusive. The Open agencies have got like a million houses for sale at the same time, hoping for a buyer to come. While an Exclusive agency has fewer houses for sale at the same time, to dedicate the time to actually sell the houses.
Who invests more time in your property when it comes to selling your house?
Open or Exclusive?
Another question… Who is losing what when the house will not sell?
Open Agency – Nothing because he didn’t invest time and money in the property.
Exclusive Agency – Money, loads of time, emotions, and illusion because he was committed to selling the house and invested a lot.
“Multi” Exclusive and “Closed” Exclusive
The problem here in Spain is that there are 2 different types of exclusive contracts. One is “Closed”, and the other one is “Multi/ Open”.
What’s the difference?
Basically it is that the “Closed” one, is not sharing their commission with other agencies when they have found a buyer. They have less chance to find a buyer because they are only working with their own clients from their database.
The “Multi/ Open” one, shares their listings with all agencies to offer the homes they have for sale to see if they have a buyer. If the other agency has a buyer, they are very happy to share the commission together! So instead of working with just 1 agent, your house has access to all agencies on the market!
“I prefer earn less money, so that the house will sell sooner!“
What’s Included In Exclusives?
- Studie of the area, to make sure the price is compatible with your competence.
If you set the wrong price (too high), you are helping your neighbor to sell his home! - Personalized marketing plan and strategy
- Professional photos and videos. Optional in consult: Home Staging
- Floor plan to get a clear idea of the property.
- Paid advertisements to get the most viewings on all the house-searching websites. [Idealista, Pisos.com, Fotocasa, etc]
- Advertisements on Social Media Facebook, Instagram, Linkedin, Youtube. “About 30% of my buyer’s leads are coming from Social Media”
- Published in MLS were here in Spain are more than 1.500 agencies working together to share properties and commission.
- Maximum availability with showings. Leave the keys to your agent and he does all the work for you so you can do what makes YOU happy.
- Communication 100%. You’ll get to know every step/ action what your agent is doing to sell your house. In 4 – 6 weeks, he shows you a report of the last 4 – 6 weeks to discuss what’s happening in the process.
- Qualified buyers. Buyers who have the money to buy, AND who still are interested in viewing after seeing the photos/ video and the floorplan.
It’s better to have 10 qualified buyers than 30 unqualified buyers! - A team of Lawyers/ Architects/ Technical Inspections/ Financiers/ Moving Companies/ Home Staging etc, to make this process as easy and economic as possible.
- An agent with the best education in the market. The market is changing every day, it’s necessary to educate every single day to avoid complications in the process.
There are many more advantages of working with an exclusive sellers agent. For me, the word exclusive means, that he/she is working exclusively for YOU. Because of the contract, the agent will have a commitment to do all the work that he said he is going to do.
But If My Neigbor Wants To Buy It?
Perfect! I automatically give you a 50% discount on my services. I’ll do the visit with him and inform him about your property. I will help him with the financial part and make sure every document we need is ready to close the deal as easy and fast and secure as possible.
That means you won’t have to find a lawyer who will make the contracts, that you will be 100% sure that your neighbor CAN pay your house*.
And besides that, would you like to negotiate with your neighbor?
* Worst-case scenario. House is reserved, the buyer can’t find the rest of the money after the 10% deposit. Then it takes months or even years to fix this problem with lawyers plus it will cost a lot of money. AND in the meanwhile, you can’t sell your house to someone else! Waste of money, time, illusion, and emotions.
I love the way of how I´m working right now. I would not do it any other way.
Have you ever sold your house with an Exclusive Contract? Or maybe are you considering it?
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