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Respond to Jessica--Open Agreement allows the seller of the real property to sell the home by themselves (Weintraub, 2017). With an open listing, the seller may have open listings with more than one broker and pay only the broker who brings forth a buyer whose offer is accepted by the seller. This enables the seller to only buy a broker’s commission, which is about half of the normal fees (Weintraub, 2017). However, it should be noted that if a seller finds a buyer themselves, they don’t have to pay anyone commission.
Exclusive agency listings is similar to the previously listed agreement, except the owner of the real property is represented by a broker. The seller of the home is still able to find a buyer themselves, therefore, paying no commission, however, the broker is can work freely with other brokers to bring in buyers. In this case, the seller of the home pays both the listing broker and the broker who brought in the buyer (Weintraub, 2017).
Exclusive Right-to-Sell Listing is the most commonly used instrument (Weintraub, 2017). This type of listing gives the broker the exclusive rights to earn the commission from the sale. The way is this done is by the broker representing both the buyer and seller of the home (Weintraub, 2017). This type of listing also means the seller cannot sell the home their selves unless otherwise agreed upon.
The highest and best use determines the most profitable use for the site whether the site be vacant land or an improved property (Spool, 2014). There are four tests in place for the best and best use and are as follows;
Most profitable (Spool, 2014).
Spool, P. (2014, August 25). Highest and Best Use Analysis. Retrieved January 25, 2018, from http://www.workingre.com/highest-best-use-analysis-2/
Weintraub, E. (2017, September 16). How Many Ways Can You List Your Home? Retrieved January 25, 2018, from https://www.thebalance.com/types-of-listing-agreements-to-sell-a-home-1799062
---------- Respond to Thomas----------Good Evening Everyone,
There are three different types of agreement listings for a real estate property. The following are the three listing types:
Exclusive Right to Sell
The three categories have three very distinct stipulations. The first is an open agreement listing. In this type of listing, or nonexclusive listing, the signing broker or agent does not have all the rights to a fee when and if the property sells. This type of listing does not hold the owner/seller obligated to give the agent a fee. This allows the owner/seller to use as many agents as they see fit and then the fee is only owed to the agent that actually get a buyer and sells the property.
With the exclusive agency, it obligates the seller/owner to one agent or broker, but it does not obligate them to pay a fee to the agent or broker. They are only required to pay the fee if the agent or broker finds and sells the property to the buyer they located. The catch is that the seller or owner has the right to sell to who ever they choose and if they choose to sell to someone they find then they are not obligated to pay the fee to the agent or broker.
With the Exclusive Right to Sell listing, it is the most wanted form that a broker or agent wants to use. This is a way that the broker or agent to always get the fee regardless of who buys the property. This is the best protection for the agent or broker to get paid their fee. Another reason that most brokers and agents like this type of listings, is that it prohibits the seller/owner from listing the property with any other agent or broker.
“The test for highest and best use requires that the use be physically possible, legally permissible, economically feasible, and achieve the maximum productivity (memorized by the acronym PLEM).” (Crane, 2016)
Crane, F. (2016). Real estate principles. 2nd ed. Riverside: Realty Publications, Inc.
Respond to Jessica--Open Agreement allows the seller of the real property to sell the home by themselves (Weintraub, 2017). With an open listing, the seller may have open listings with more than one broker and pay only the broker who brings forth a buyer whose offer is accepted by the seller.