Pros and Cons To Multi-Listings
A multi-listing, or a multiple listing agreement is an option open to sellers if you’re willing to offer it.
Normally, under an exclusive agreement, one agent/agency handles the entirety of the sale process from start to finish, including the photography, marketing, open for inspections, negotiations etc. until the property is sold and unconditional.
Under a multi-listing agreement, the seller signs up to you and any other agent(s) whom usually work for the same agency. The property is then marketed to both agent’s audiences, effectively promoting the property to more potential buyers.
So, what are the advantages and disadvantages of a multiple listing agreement?
All agents involved in the multi-listing will share the commission from the sale, so you may find the other agent involved in the multi-listing work less efficiently than you, essentially relying on you to sell the property even though they get paid half of the commission fee.
Miscommunication between all agents and the seller could also lead to a lower sale price. Buyers will often go to all agents of the multi-listing property and see who will accept the lowest offer. If you’re not on the same page, the property could sell for less than its potential.
The main advantage is of a multi-listing is that the property can be marketed to more potential buyers. This could lead to the attraction of buyers outside your core market. Multi-listings were particularly popular in the days before domain.com.au and realestate.com.au when properties were not accessible at the click of a button.
Although not as common, multi-listings still occur today if a property is listed for sale outside an agent’s core market and the listing agent often invites the area’s well-known agent to share the listing. Their personal contacts or buyers who have recently missed out on property in the area could the buyer of the multi-listing property.