1) Non-exclusive (simple) brokerage agreement
Characteristics:
• The owner can sign with several brokers at once.
• Advertisements often duplicate, prices/messages diverge.
• The broker’s motivation to invest in marketing is lower: there is no guarantee that they will receive remuneration, even if they put in a lot of work.
• More chaos for the buyer: “the same property with 3 brokers”, different conditions, sometimes different prices.
Risks for the owner:
• Weaker control (who, where, and how communicates).
• The negotiating position “disperses”: buyers see that the property is being “pushed” everywhere, start offering less.
• Disputes over commission may arise if several brokers bring a buyer at a similar time.
2) Exclusive (exclusive) agreement
Characteristics:
• One responsible broker manages the process: pricing, strategy, communication, viewings, negotiations.
• Clearly agreed upon: term, commission, marketing plan, reports, adjustment mechanism.
• The broker usually invests more boldly: professional photoshoot, video, advertising, “ADD”, partnerships with other brokers.
Risks for the owner:
• If the broker is weak – you will “burn” time (therefore, KPIs and contract safeguards are essential).
• It is necessary to clearly define when and for what the commission is paid (especially if the owner finds a buyer themselves).
Why is the owner offered to sign an exclusive agreement?
Three reasons:
A) For the broker to genuinely take responsibility for the result
Without exclusivity, the broker often works “on luck” – invests less, because another party can take the deal at any time.
B) To have a unified sales strategy and stronger negotiating position
One voice in the market = clear price, one advertisement, one narrative, one viewing schedule. To the buyer, this looks orderly and “more valuable”, not like a desperate sale.
C) To ensure clarity regarding commission (fewer conflicts)
Exclusivity creates transparency: one broker is responsible for attracting the buyer, conducting negotiations, handling the documentation, etc.