Tough Fight : Exclusive Listing VS Open Listing
Updated: Jan 13
Selling A Property Is Not A Piece of Cake
If you are selling your property (HDB / EC / Condo) in the resale market, it is highly likely you will be approaching real estate professionals / realtors to assist you in the marketing of the property. Engaging a realtor is usually a viable option if you are always busy with full plate. Nowadays realtors need to wear many types of hats and need to have knowledge of financial planning, timeline planning, legal advice, marketing strategies, social media management, customer relations, crisis management and many more skills to handle complicated transactions. If you are selling your MOP fulfilled property (HDB / EC within 10 years), you will not have to worry about having to market the property, screen enquiries, conduct viewings, involve in negotiations which is a very long sale process.
Definition of Exclusive Listing and Open Listing
An Exclusive Listing: through face-to-face interaction with a few realtors, owners decide to only appoint one dedicated realtor to solely handle the whole process of marketing their property.
An Open Listing: owners welcome any realtors by just giving them the right to market their property without the need to understand each realtor well. The deal will go to whoever being able to bring an offer on the table.
“Today I am advocating owners to go for Exclusive Listing with Team Marketing Strategy”
I am advocating Owners to go for Exclusive Realtor with Team Marketing Strategy which is like having the best of both worlds. I have been representing owners as Exclusive Realtor with proposal having a marketing team to work together with me. Many owners are receptive to the idea and proposal. What I am trying to do is not just selling a big ticket item & handling the paperworks, but to add value in terms of providing the greatest exposure and fetching the highest possible price for every owner especially whose property is hitting the 5-year MOP mark.
Some owners are having the thought that having an exclusive realtor to do the work is like putting all eggs into one basket. Some of them might also think that it is a better idea by making their houses to be Open Listings. It is actually a myth to say that Open Listings can potentially invite plenty of viewings and enquiries due to greater exposure with multiple competing realtors marketing at the same time. Here are some reasons below that owners should not use the Open Listing approach to market their property.
Danger 1: Many Cooks Spoil The Soup
There is no price protection when many different realtors start marketing your property. They will definitely set different selling prices in their marketing advertisements on various portals. Most busy owners like you will not have privilege of time to monitor the advertisements. Even if all realtors advertise the same selling price, it takes one or two to actually reveal owners' minimum acceptable price to potential enquiries to go with them for viewings.
Realtors involved in Open Listings are usually hoping that they are the one who clinch the deal. If one realtor manages to bring an offer on the table, he / she will pressurize you the owners to quickly accept the offer instead of sitting down to do price analysis with the owners whether the price is reasonable to let go the property.
However, with Exclusive Team Marketing doing it for you, it will be different experience for you. Owners' interest is being protected. Being the Exclusive Realtor, i will be doing the best for you together with my team. I will be the one in control of the marketing price and negotiation without interference by any other realtors.
Not only does my team qualify buyers by filtering the genuine ones and assessing the buyers' eligibility to buy (budget, nationality, race, scheme), my team also coordinates viewing appointments to be back-to-back to create hype for the property. With any offer on the table, I will be acting as the intermediary (not as messenger) in negotiation with owner's best interest in mind by not touching the base price where possible. Not just price, there are also plenty of other terms and conditions to discuss such as extension stay, timeline, inventory, completion date etc.
Danger 2: Different Agency Listing Shows Desperation
There is danger of overexposure when listings are uploaded by realtors from different agency. If your unit listings appear too often in the digital portals, it does send a signal to potential buyers that the owner might seem very desperate to sell. This tends to attract low ball offers. You may face the same situation in Open Listing whereby if there is an incoming offer, other competing realtors will quote lower to the offering party to burst the deal.
However, with Exclusive Team Marketing doing it for you, it will be different experience for you. All of my teammates are advertising the same selling price and we will explain to each enquiry that we are actually marketing the house as a team representing the owners. The enquiries will find it is pretty amazing to have a team to work together on a listing and they will not have any negative impression towards the property
In addition, all my teammates will be conveying the same marketing message and status of the property to every enquiry such as 2nd viewing, offer under discussion, offer accepted etc. Information dissemination is efficient and is top-down approach to ensure there is no miscommunication within the team.
Danger 3: Marketing Strategy & Exposure
Realtors, who are engaged in Open Listing, are highly not going to invest significant amount of money in marketing funnels and pour in tremendous amount of effort in following up with potential buyers. They could be thinking that since the owners have many other agents working for them at the same time, there isn't a need for them to work so hard. With each realtor in Open Listing having the same thought and attitude, the sale progress of the property will be very slow due to limited marketing exposure.
However, with Exclusive Team Marketing doing it for you, it will be different experience for you. My team has freedom in engaging in any form of marketing strategies without interference from other salespersons. Other than advertising on major online digital platforms, my team will not rule out the possibility of deploying creative strategies to create hype and demand for the house. By having the exclusivity to market the property, my team will only go all out to put in actual marketing dollars upfront to get leads and offer for the property.
Danger 4: Family Time Not Within Control
As the nature of the listing is Open Listing, the commitment level of each realtor is not high. Especially when some realtors are not free to show the house due to their own planned activities, they will not fix the viewings or they even ask owners to show the units themselves to potential buyers. If all realtors in Open Listing behave the same, the chance of having offer on the table is almost nil.
Duplicated viewings is one phenomenon you as the owner will experience as well in Open Listing. You may chance upon the same buyer viewing your house twice or thrice if the reatlors in Open Listing do not qualify the buyer properly. Also, with many different marketing agents arranging viewings at different timings in a day especially on Saturdays and Sundays, you will not be able to enjoy quality family time but just waiting in the house for buyers to view your property.
However, with Exclusive Team Marketing doing it for you, it will be different experience for you. As my team is the only Exclusive Marketing Team for the house, we will definitely need to go down to show the house without any excuse. Not only that, we will consolidate the enquiries to view over same time period to create the hype and urgency in buyers to offer for the property. Duplicated viewings definitely will not happen because there is seamless communication within the team.
An experienced salesperson will be your solid and trusted partner that can help you achieve your goals. By being committed to your appointed realtor, your dedicated exclusive realtor will also take good care of your interest and benefit. If your property has fulfilled Minimum Occupation Period (MOP) or holding property within 10 years and decided to sell, you have a choice to make: Open Listing or Exclusive Listing.
Still unsure about your choice and wish to find out more ?
If you have a plan in mind but not sure if it works well – do share with me or let me know.
I will do my best to assist you to make sure you look at your plan from multiple angles and ensure you have a very clear picture on what’s going on.
Drop me a HI! in whatsapp and share with me your top most concern in the property upgrading journey.
JJ Wong is the founder of MOPUpgraders.sg and has been a Property Wealth Planner in the real estate market for the past 6 years. He has helped many clients achieve their aspirations with the right financial planning and sound timeline planning. He is the man behind upgrading case studies of those who are holding on property under 10 years.