Open Listing

Open Listing

An open listing is a nonexclusive agreement that allows multiple real estate agents to show and market a property. Agents compete to bring a buyer, and only the agent who procures the buyer and closes the sale earns a commission. If the homeowner finds a buyer independently, no commission is owed under an open listing.

Key Takeaways

• Open listings let any agent try to sell the property, increasing potential exposure.
• Only the agent who closes the sale is paid; commission may be split among cooperating agents.
• Exclusive listings give a single agent the sole right to sell and greater incentive to invest time and resources.
• Agents may be reluctant to accept open listings because the likelihood of earning a commission is lower.

How an Open Listing Works

• The seller signs a nonexclusive listing agreement with one or more agents.
• Any agent who brings a ready, willing, and able buyer who completes the purchase is entitled to the commission agreed in the listing.
• If the seller sells privately without an agent’s involvement, no commission is due under an open listing.
• By contrast, an exclusive right-to-sell listing guarantees the listing agent a commission regardless of who finds the buyer; an exclusive agency listing pays the agent only if they or another agent procure the buyer.

Why Sellers Choose an Open Listing

• Desire for broader exposure through multiple agents and their networks.
• Expectation of a quick sale and preference not to commit to a single agent.
• Opportunity to avoid paying a commission if the seller finds a buyer without agent assistance.

Special Considerations

• Agents often prioritize exclusive listings because their marketing and negotiation efforts aren’t guaranteed a reward under open listings.
• Some brokerages have policies restricting how open listings are handled or advertised.
• Commission splits and the competitive nature of open listings can reduce the amount of attention each agent devotes to the property.
• An open listing can be useful as a secondary approach if an exclusive listing fails to generate offers.

Exclusive vs. Open: Which Is Better for Sellers?

• Exclusive listing advantages:
• Stronger incentive for the agent to market aggressively.
• Clear accountability and a single point of contact.
• Open listing advantages:
• Potentially wider reach through many agents.
• Flexibility and the chance to avoid commission if the seller procures the buyer.

For most sellers, starting with an exclusive agreement can produce better marketing and dedicated effort. Converting to an open listing may make sense later if the property does not sell.

Common Questions

What does “exclusive” mean on a listing?
* It means one agent has the sole right to represent the seller and negotiate the sale during the listing term.

Does an open listing have an expiration date?
* Yes. Like other listing agreements, open listings typically specify a term (e.g., 90 or 180 days). The expiration limits how long agents may claim commission under that agreement.

What happens if the homeowner finds a buyer?
* Under an open listing, if the homeowner negotiates and closes the sale without an agent, no commission is paid. Under an exclusive right-to-sell agreement, the listing agent still earns the commission.

Bottom Line

Open listings can increase exposure by involving multiple agents, but they often receive less active promotion because commissions are uncertain. Sellers who want dedicated marketing and motivation from an agent usually fare better with an exclusive listing; sellers who prioritize flexibility or hope to sell quickly without paying commission may prefer an open listing.