Buyers usually offer less taking commission 'off the top' because they know an agent isn't involved.  Many owners don't have the skill to qualify buyers and are not trained negotiators.  Awkward negotiations often result and opportunities are missed.

Not a realistic option for most sellers. Industry figures put the chance of success by private sale in the first 90 days at less than 10%.

This method invites a number of agents to sell the property for you but seldom does it get the best price for you.  Some people still think the more agents, the more buyers.  WRONG!  This is one of the most common misconceptions about when choosing a marketing method.  Buyers 'shop around'.  Think about when you last looked at property.  Did you just call one agent or did you call several off signs, newspaper advertisements and open homes?  There's a certain number of buyers in the marketplace at the one time.  'Hot buyers' buy within three weeks.  The same buyers call all the agencies.  Agents basically have the same buyers on their database.  

There are no advantages for anybody in an open listing.  Good agents focus on selling the properties exclusively listed with them.  Typically, open listings will miss out on 'hot buyers'.  You want one good agent committed 100% to selling your property, not three or four who 'will keep it in mind'.

Agents who do take on open listings usually do so because they have few clients. This is most often a reflection of their poor sales success, reputation in the marketplace and their lack of strong negotiating skills.  Typically these below par agents work for the buyer to get a sale at all costs rather than working for you to get the best price.  Hardly the person to be negotiating on your behalf!

An open listing is everybody’s listing and no one’s responsibility.

Industry figures show that the chance of a successful sale by open listing in the first 90 days is less than 20%.

If you want an agent to work hard for you and to give you the best possible service then an exclusive listing is very important.  It is the agents job (by law) to work for you and to obtain the highest price that they can for you.  You'll have one agent working for you with a commitment to get the property sold at a good price (not a quick sale at any price).  Your property becomes a priority listing, you receive regular feedback and only one key is handed out to only one agent.

Buyers feel comfortable in that there's no urgency in making a decision and they are almost always at ease offering less than the listed price to a third party.  A skilled negotiator will get the 'less than what you'll take' offer increased by way of pushing the benefits to that particular buyer who has usually confided in your agent what their basic needs are prior to them inspecting your property.

The REIQ recommends these methods of selling property as two of the most effective.  "If you trust the agent - give that agent the responsibility"

Industry figures show that the chance of a successful sale by sole or exclusive agency in the first 90 days is approximately 50%.

Time and time again proven to be the most effective method of achieving the most the market will pay in the shortest time possible.  High profile, regular feedback and cash contract with no conditions.  The only method of sale where there's no cooling off period for buyers.  Every prospective buyer will inspect the property, attracted by the marketing which highlights the benefits and not the price.  Competitive bidding maximises the price and a set date for sale ensures a sense of urgency amongst buyers and that the property doesn't become stale in the marketplace i.e. is on the market for too long a period of time.  When this happens, the buyers inspecting become fewer and the offers coming in are lower because of the perception there's something wrong with the property.

It can be expensive.  Most sellers decide on a marketing budget of 1% to 3% of the expected sale price for an effective campaign.  Many frustrated sellers give away a lot more in negotiations after three months or longer of being on the market in a normal sale when listed with a price.

Auctions work!  Industry figures show that approximately 80% of properties sell as a result of an auction marketing programme.  Most people who have experienced a properly run auction choose to auction again.   A survey by the Real Estate Institute shows that the Auction system has a success rate of 89%.

Conditions can be unacceptable to a seller and transactions can fail to go through because of long time delays over conditions being met.  There's no emotional, competitive bidding to ensure a premium price.

Not a preferred method of sale in residential situations, however there are valid exceptions.