Mr. Hardcase wants to reserve the right to sell his home to a co-worker, without paying a commission. Which of the following listings would best serve Mr. Hardcase's interests?
A. An exclusive agency
B. An exclusive right-to-sell
C. A net listing
D. None of the above
D. None of the above.
An exclusive agency listing would still require Mr. Hardcase to pay a commission if the co-worker purchases the home through a real estate agent.
An exclusive right-to-sell listing also requires Mr. Hardcase to pay a commission regardless of who sells the home, including if he sells it to a co-worker.
A net listing allows the seller to set a minimum amount they want to receive from the sale, and the excess amount above that minimum becomes the commission for the agent. This would not serve Mr. Hardcase's interest as he wants to sell the home without paying a commission.
Therefore, Mr. Hardcase's interest of not paying a commission is not served by any of the options listed.
The best listing option that would serve Mr. Hardcase's interests is option D, None of the above.
A. An exclusive agency listing would still involve paying a commission to the real estate agent if the property is sold, even if Mr. Hardcase sells it to his co-worker.
B. An exclusive right-to-sell listing gives the listing agent exclusive rights to earn a commission regardless of who sells the property, thereby not serving Mr. Hardcase's interest of avoiding commission payment.
C. A net listing is a type of listing where the seller specifies a desired net amount they want to receive from the sale, and any amount above that can be the commission for the agent. This type of listing could potentially be used to avoid commission payments, but it also poses ethical concerns and is illegal in some states. It is therefore not recommended.
To best serve Mr. Hardcase's interests, he may want to consider other options that do not involve paying a commission, such as selling the property privately or consulting a real estate attorney for advice on how to structure the sale to his co-worker without commission payment.