What Is an Open Listing?

An open lis🌱ting in real estate is a property for sale that may be shown by multiple real estate agents. The agents compete to find a buyer for the property.

The open listing is the opposite of an exclusive listing, in which a real estate agen෴t is engaged by the property owner with the🐻 understanding that the agent has the sole right to represent the owner and sell the property.

When the listဣing is open, the agent who makes the sale is paid the commission, not the listing agent. If the homeowner finds a buyer without the assistance of an agent, no one is paid a commission. If the agent has an exclusive right to sell, the agent earns a comm꧋ission regardless of who sells the property.

Understanding an Open Listing

An open listing is also referred to as a listing agreement on a nonexclusive basis. Agents who directly participate in selling this property, including the listing agent and the selling agent, are entitled to a share of the commission if it ultimately leads to a sale.

Sellers who are hoping for a quick sale may opt for an open listing. If they don't attract a buyer during the term of the agreement, they may then change to an open listing to get more prospective buyers through the door.

The seller may also hope to avoid paying a commission altogether. That is, if a buyer and a seller make a private deal independently, there may be no sales commission. If it is an exclusive "right to sell" agreement, the agent is still owed the commission. If it is an "exclusive agency listing" agents are paid only if they sell the property.

Special Considerations

Real estate agents can be reluctant to take on an open listing, or reluctant to put much work in🌱to it because the commission is likely to be split.

The o🧜pen listing arrangement benefits the seller by offering them access to more agents to sell their property.

Real estate firms may haveඣ rules governing whether their agents may participate꧅ in open-listing arrangements. Some firms allow open listings to be accepted but not advertised, although agents can engage clients they already have as potential buyers.

The limited potential for commissions💜 incentivizes agents to focus on exclusive contracts.

The Bottom Line

Homeowners looking to quickly sell their property might consider an o𝄹pen listing since it gets more agents (and prospective buyers through the door). That said, some real estate agents might be hesitant to show open listings because the commission might be harder to earn or is likely to be split.