Advantages and disadvantages of opne agency agrement?

[manlybeach]

From what I know the main advantage are:

After you sign the agreement from RE agency, you can also look for another RE agents to sell on your behalf or even myself (say there are 5 in total including myself) and whoever finds the seller upon my satisfaction price, I ONLY pay to that agent's commission (and perhaps NONE if I find myself) and not to others since they lost the compeition, is that correct?

I know this is a HUGE advantage over EXCLUSIVE agreement since you are restricted to 1 agent but for OPEN, you can ask anyone to sell on your behalf and whoever sells it will get the commision.

But what are the cons of OPEN though? The only con I could think of is that you pay MORE than 1 RE agent advertising cost, say....if you let 4 RE agent do the job, then you pay 4 advertising cost. Other than that, I can't think of a real disadvantage, no?

 

[Ed Barton]

It appears that you are desperate to sell. at least that's what i think with multi listings.

You've got 4 agents doing a half arsed job rather than one really trying to sell it.

 

[Jtkumnick]

open listings are the training ground of apprentice agents. The feel in a real estate agency is if the vendor doesnt trust us enough to handle it, we'll sign it up and let one of the newbies show a buyer, if one comes along- if not who cares. You are asking an agent that only gets paid on commission to reduce his odds of ever getting paid for any work done. Good agents will pass, the rubbish ones that people whinge about, will come knocking.

No decent agent will accept an open listing. The old phrase "everyones responsibility is noones responsibility" is true here.

I would interview a few, pick the best one.

 

[Andrew_A]

From what I know the main advantage are:

After you sign the agreement from RE agency, you can also look for another RE agents to sell on your behalf or even myself (say there are 5 in total including myself) and whoever finds the seller upon my satisfaction price, I ONLY pay to that agent's commission (and perhaps NONE if I find myself) and not to others since they lost the compeition, is that correct?

I know this is a HUGE advantage over EXCLUSIVE agreement since you are restricted to 1 agent but for OPEN, you can ask anyone to sell on your behalf and whoever sells it will get the commision.

But what are the cons of OPEN though? The only con I could think of is that you pay MORE than 1 RE agent advertising cost, say....if you let 4 RE agent do the job, then you pay 4 advertising cost. Other than that, I can't think of a real disadvantage, no?

A recipe for a poor result in most cases I think.

There is a strong incentive for any agent to just close the deal rather than trying to string a buyer along for a few extra percent on the deal which is likely your main consideration. If you just want a property sold fast then it's probably a smart idea.

 

[Jtkumnick]

PS you can do a Sole Agency where you appoint one real estate agent only, but give yourself the right to sell it as well for no commission cost, that is preferable to an agent than open, and might be a better middle ground if you think you might stumble across a buyer yourself?