BOULDER, CO, Apr 24, 2024—If you’re looking to sell your home and shopping around for agents, you may have heard the term “exclusive right to sell,” especially when dealing with contracts. But what does this mean, and why is it important?
“Basically, an exclusivity agreement means you won’t hire another agent to list the same property, and if the property sells, your agent gets their commission,” says Phil Boren, Broker Associate of RE/MAX of Boulder, Inc.. “You will work exclusively with the selling agent you’re contracting, and if for some reason, you sell the home yourself while under contract, the agent still gets their commission.”
These contracts are helpful as they inspire your agent to hustle hard for their commission, rather than the type of contract that may work on an upfront fee, regardless if your home sells or not. The contracts also typically note that the agent is to act in the best interests of their client, even when such action is not in the agent's best interests.
There are a few more things to pay mind to when understanding your exclusivity agreement. The first is to pay attention to the term. “Your listing term will outline how long your exclusivity agreement lasts - it could be anywhere from six months to two years,” says Boren.
Of course, the broker may share the listing with other brokers on the Multiple Listing Service (MLS) to get the widest possible exposure for your home. Or, if you request that the property not be listed on a multiple basis, only the broker named in the contract and his or her sales agents can market and show it.
When signing on with an agent, the Exclusive Right To Sell document will be signed by the owner(s) of the property, and their broker or agent, before the real estate professional can list the property.
“The document also outlines the percentage of sale price the agent will receive for their commission,” says Boren.
For information on real estate contracts, please contact RE/MAX of Boulder, Inc. at philboren@gmail.com, 303-441-5647, or RE/MAX of Boulder, Inc..
Phil Boren is a 26-year veteran real estate Broker and Realtor, specializing in consulting with buyers and sellers in Boulder, CO and along the Front Range of Northern Colorado. Held Real Estate Broker's license in Texas, California and Colorado; Managing Broker for over 200 agents and Brokers for Century 21 and RE/MAX franchises. Award-winning Realtor with experience in management, sales, marketing, relocation, appraisal, REO, BPO's, foreclosures, short sales; previously held the MAI designation from the Appraisal Institute. Experienced in both residential and commercial real estate and achieved the No. 14 individual ranking in the 5-state, Mt. States Region for RE/MAX International in 2001, based on sales volume. Received my BSBA in Finance and Real Estate from the University of Arkansas in Fayetteville, where he was a 4-year starter and 4-year football letterman for Hall-of-Fame coach, Lou Holtz.