IT'S TIME TO EMBRACE EXCLUSIVE LISTINGS OVER OPÈN LISTINGS.
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During an online interaction with Shirley Kongai, the President of AREA Uganda, on LinkedIn, she responded to one of my newsletter articles by posting a comment with the exact same title as this blog. Her post therefore inspired me to write on the topic. I "liked" and "commented" on her post, even though her stance contrasts with my "open market capitalistic ideology." Here's why.
While the traditional model of open listings may offer flexibility, exclusive listings have several advantages that can lead to better outcomes. However, it's also essential to acknowledge the potential downsides. Let's explore why property owners in Uganda should consider embracing exclusive listings, while also understanding the challenges.
What Are Exclusive Listings?
An exclusive listing is an agreement where a single real estate agent or agency is given the exclusive rights to market and sell a property for a specified time. The property owner agrees not to work with any other agents during this period, and the agent receives a commission regardless of how the buyer is found.
In contrast, open listings allow property owners to engage multiple agents at the same time. Only the agent or sub-agent who secures a buyer earns a commission, making it a competitive arrangement for all the agents involved.
1. More Focused and Professional Marketing.
Pros:
In Uganda's increasingly competitive real estate market, properties need strong and focused marketing to attract the right buyers. With exclusive listings, agents are motivated to invest in professional photos, highquality online marketing, social media promotion, and virtual tours, ensuring that the property reaches the right audience. Since they have a guaranteed commission, exclusive agents tend to use more comprehensive and aggresive marketing strategies, giving properties better exposure.
Cons:
With exclusive listings, the property is typically marketed through a single agent or platform, which can limit its overall reach. In a market where online presence is still developing, the property may not be as visible to potential buyers if the agent doesn't use all available marketing channels, such as major listing sites like Real Estate Database (RED) or Lamudi or Realtors Uganda.
2. Stronger Agent Accountability and Commitment.
Pros: In Uganda, exclusive listings foster a stronger agent-client relationship. Agents who hold exclusive rights feel a greater sense of accountability and commitment to securing the best deal for the property owner. This can lead to more personalized service, better advice on property improvements, and stronger efforts to close the sale at the best price. Cons: However, choosing the wrong agent can backfire. If the agent is not proactive, is not using any property marketing plartform, has no website, lacks sufficient experience, or doesn't have a broad network, the sale process can be slow. Property owners are essentially putting all their eggs in one basket, which can lead to frustration if the agent fails to perform. 3. Improved Pricing and Negotiation Power.
Pros:
With an exclusive listing, the agent has a thorough understanding of the property and its market value. This gives them an advantage in pricing the property appropriately and negotiating with buyers. In Uganda's fluctuating property market, where land and home values can vary drastically depending on location, having a single agent who is fully invested in selling the property ensures better pricing and negotiation strategies.
Cons:
On the flip side, relying on just one agent might mean missing out on other potential offers. With open listings, the competitive nature between agents can sometimes lead to faster sales because multiple agents are actively working to secure a deal, yet in an exclusive arrangement, this competition is absent, and the agent may not feel the same urgency to close the deal quickly.
4. Streamlined Communication.
Pros: Exclusive listings reduce the complexity of working with multiple agents. Property owners only deal with one agent who then deals with other agents and sub-agents, which simplifies communication accross all agents and sales persons. The exclusive agent provides all the feedback including price changes, organizes showings, and negotiates on the owner's behalf. This results in a more coordinated and transparent process, with fewer risks of conflicting listing information being passed to potential buyers and sub-agents. Cons: However, if the agent is not responsive or communicative, the property owner and other subagents may feel left out of important decisions or updates. With only one agent in charge, a lack of communication can lead to delays in receiving critical feedback, market insights, or buyer offers. 5. Enhanced Control Over the Sales Process.
Pros: Exclusive listings give the property owner more control over the sale process. The agent, with sole responsibility for the sale, has the time to create a strategy, conduct targeted marketing, and adjust the approach as needed. This includes deciding when to hold showings and guided tours, recommending improvements, and offering pricing advice. For Ugandan property owners who want to maximize their property's value, this level of control is crucial. Cons: In some cases, the exclusivity may lead to missed opportunities. With an open listing, multiple agents market the property to their networks, potentially increasing the chances of finding a buyer more quickly. If an exclusive agent fails to deliver results within the given timeframe, the property may stay on the market longer than it would have with open listings.  Why Ugandan Property Owners Should Make the Shift.
Despite the cons, exclusive listings still provide numerous benefits for Ugandan property owners. They encourage more professional marketing, ensure stronger commitment from agents, and help secure better prices through strategic negotiation. Exclusive listings provide an opportunity for property owners to work closely with an agent who is fully dedicated to the success of the sale. However, property owners must carefully select their agent. Doing thorough research and working with a reputable real estate agent with strong local knowledge can help mitigate some of the risks associated with exclusive listings.
The Need for Accountability in Exclusive Listings.
Over the past few years, I've observed that some agents who are granted exclusive listings often act selfishly, making minimal effort to promote or invest in marketing these properties. This lack of effort is very concerning, that's because aggressively marketing the property was one of the reasons the agent was given exclusive rights in the first place.
Many agents like those come to me in a panic, having failed to sell an overpriced property. Now, they're facing mounting pressure from the landlord for a quick sale, several months after signing the exclusive agreement and just a few weeks before the expiry of the same agreement.
When I suggest that they invest in boosting the property on the RED to expedite the sale during the final weeks of their exclusive listing agreement, these agents often claim they have no funds available. This raises the question: Why seek exclusivity if you're unwilling to invest even a single shilling in boosting the man's property?
If an agent lacks the funds for marketing an exclusive listing, I typically advise them to encourage the property owner to invest in boosting the listing on the RED for a faster sale, before committing to an exclusive listing agreement.
Additionally, experienced agents should already understand the importance of providing proper pricing advice to the seller. An overpriced property, even when boosted, will struggle to sell in a market with many similar (or comparable) options in the same price range and location.
These issues need to be addressed, or exclusive properties will continue to languish on the market, turning the idea of exclusive listings into a nightmare for landlords rather than an advantage. I hereby call upon all agents with exclusive listings to invest in boosting their exclusive properties on the RED to increase visibility, attract more leads, and achieve faster sales. Conclusion.
In Uganda, the decision between open listings and exclusive listings can significantly impact the success of a property sale. While open listings provide more agent exposure, they often result in less focused marketing, duplicate listings at varying prices and lower agent commitment. Exclusive listings, on the other hand, offer tailored marketing, stronger accountability, and better control over the process.
That said, exclusive listings come with some tradeoffs. Limited reach, the need for trust in a single agent, and potential delays in closing the deal are factors property owners should consider. However, with the right agent, the benefits of exclusive listings far outweigh the drawbacks.
For Ugandan property owners seeking a smooth and successful sale, embracing exclusive listings is the path forward provided they partner with an experienced, committed real estate professional from the RED, who can deliver results.
Kind Regards
Julius Czar
Author: Julius Czar
Company: Zillion Technologies Ltd
Mobile: +256705162000 / +256788162000
Email: Julius@RealEstateDatabase.net
Website: www.RealEstateDatabase.net
App: Install the RED Android App
Follow me on: Twitter, LinkedIn, Facebook.
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