I tell him there are four types of listing contracts; a Net listing, an Open listing, an Exclusive listing and an Exclusive Right to Sell listing.
A Net listing is one where the owner specifies a net price he wants for his property, and any amount over and above that price is the commission paid to the selling broker for his services.
An Open listing not only allows the seller to list the property with more than one broker, but also allows him to sell the property himself.
An Exclusive Agency listing gives the employment contract to one broker only and assures him that the property will not be listed with other brokers. However, the seller has the right to sell it himself and not compensate the broker.
Lastly, the Exclusive Right to Sell listing is one that makes the broker the sole and exclusive agent for the seller. Regardless of who sells the property the broker will get compensated.
After going over the pros and cons of all of the listing types he turns to me and asks me where I learned all of this. I proudly say “Inet School of Real Estate”. He then says, “lets go with the Exclusive Right to Sell”. I take out the paperwork for signatures and get my first listing, list price……$1,250,000! Yeah!!