If you try to sell your home in the US or Canada, you have a choice between working exclusively with a real estate office of your choice or trying to sell your property on your own (for sale by owner). 98% of sales in the US and Canada are sold exclusively, with the remaining 2% sold by owners.
In Israel, there is a third and very popular way you can attempt to sell your home: an open listing. Open listings allow multiple real estate agents to list the property in order to sell it. With an open listing, the agent that sells the property collects the commission.
At first glance, this sounds like a great option: giving several successful agents an equal opportunity to sell the property, but only paying the successful one. So why aren't open listings used in the US and Canada if it’s so successful? Because in reality, open listings are the worst thing an owner can decide to do when they want to sell their home.
In open listings, the property becomes overexposed. Multiple brokers and the owner publicize the property, each trying to be the first to bring potential buyers to the apartment. In order to so, the brokers often falsely advertise the property in order to attract more potential buyers to their listing (by lowering the actual asking price, not being truthful regarding the details about the property, etc.). This results in many irrelevant potential buyers coming to see the property, inconveniencing the owners and wasting everyone's time. It also may result in multiple irrelevant offers on the property, much below the asking price.
The bottom line that points to why open listings are so harmful is that after receiving so many low offers on their property, owners often lose faith in their original (and accurate) asking price and end up accepting one of these lower offers, not realizing they could have sold the property for much more if they had sold it themselves, or especially is they had allowed a broker to list it exclusively.
Don't agree to open listings- it creates a circus that will make it hard, if not impossible, to sell your property at your asking price.
A broker working exclusively will manage the process in a professional and responsible manner: they will publish the correct asking price and property information, and screen interested parties, attracting only relevant potential buyers. This will save time, and keep the asking price high and competitive, managing negotiations professionally and effectively, without rushing to compete with other brokers, and only looking out for the property owner and their interests.
Barak Daon Tel Aviv Real Estate, and our REMAX partners, only agree to work exclusively with owners because we know it is the only ethical and professional way to sell properties, both for buyers and sellers. Contact us to learn more about the process and let us provide you with the personal care and dedication you deserve.