When selling property by open listing an open listing agreement is entered into with a number of agents at the same time and the agent who introduces the purchaser and holds the deposit is entitled to the commission.
Many owners thinks that signing an open listing agreement creates competition between agents and is the best way to sell
their property. In actual fact nothing can be further from the truth.
The market generally believes that if an owner has a property listed with multiple agencies at the one time then the property may be over priced and difficult to sell. This can translate into a reduced selling price. Think about your own experiences. What does it look like when a home
has 4 or 5 different agency signs on their front lawn?
Remember that real estate agents do not get paid unless they successfully close a sale. If a real estate agent
receives an offer from a prospective purchaser he does so under the knowledge that another agent could present an offer to you at any time. Answer these questions :
Can you be certain they will invest the required time to make sure the buyer pays the highest price for your home?
Will an agent rush the negotiations to lock in a sale if he knows somebody could beat him and he earns nothing?
It must be pointed out that quite often you may not get the same amount of service from agents on an Open Agency Agreement and therefore it may take a longer period to sell your home.
If a house has not sold during the agreed period it is likely that the price placed on it is too high.