Exclusive or Non-Exclusive Authority to Sell, which is which?

This article is written in continuation of my last blog on “How To Select A Real Estate Agent to Sell Your Property.” Also, I will explain to you the difference, the pros and cons of selling your property in exclusive or non-exclusive authority to sell. So, let’s get started.

When you hire a real estate agent/broker to sell your property, they will ask you to sign an agreement that authorizes them to market your property. Both documents, exclusive and non-exclusive, are given to the broker that consents them to market your property for sale.

This document is also executed in order to protect the broker not to be bypassed in dealing and negotiating your property, as well as to protect you, the seller, from any unwanted claims or misrepresentation on your property.

Exclusive Authority to Sell
In Exclusive Authority, it is only given to one broker or his firm or with his co-listing broker, and that broker is the only one allowed to represent, market and negotiate in your behalf.

Pros
It frees you from a lot of stress because you only need to deal with one broker. All other brokers may want to sell or has a buyer to your property but they have to go through to your broker and let your broker handle everything on your behalf. So if an offer comes, your broker will be presenting you the offer and negotiates on your behalf and into your advantage.

You are quite sure that your broker will be focused to sell your property because the exclusive authority to sell has a time limit or a time period where the broker is allowed to represent you. This will give the broker urgency and give out the best he can to sell your property.

Also, if the time period has finished and your property is not yet sold, you are allowed to renew it on the same broker or to look for another broker that you think can bring more to your advantage and make things done than your former broker.

Cons
You are limited to one broker. If your broker is kind of slack, doesn’t give much time and attention to your property, also not invested, meaning doesn’t spend on marketing at all, chances are there is only a few activities happening in your property and the possibility of selling it quick is slim.

That is why it is very important that when you hire a broker, you need to ask his level of commitment and what he has to offer in selling your property.

Non- Exclusive Authority to Sell
In Non-Exclusive Authority, your property is open for all brokers to list, market and negotiate.

Pros
Many brokers will market your property and to represent you. The possibility of letting people know that your property is for sale is much faster.

Cons
You have to deal to a lot of brokers. You will have to speak and approve their strategies on selling your property. Also, if offer comes to different brokers you need to deal with them individually and come up to the best price you are willing to sell your property.

Often, this contract does not have expiration or a time period that the broker may market your property. It also means that you cannot pressure the broker to sell your property as fast as possible. And most of them won’t spend that much in marketing.

Final Thoughts
Whether to give an exclusive or non-exclusive authority to sell, the very first question you need to ask yourself as a seller is that how fast do you want your property to be sold? If you want it fast, better to go for an Exclusive Authority to Sell. If you just want to put it on the market and wait for a good offer price, I would suggest going for Non-Exclusive Authority to Sell.

Though there are still other factors you need to ask why to give an exclusive or non-exclusive authority to sell, the best way for you to handle this is to know your comfortable level to handle the entire process of selling and dealing with your broker/s. Because in real estate, there are always pros and cons. The key is, deciding which one outweighs the other.