Open vs. Exclusive Listings

You can list your property with multiple realtors using an open listing or exclusive agency listing – but you cannot if you have an exclusive right-to-sell listing. There are some benefits and limitations inherent with each approach.

If you think you want to list with multiple realtors, it’s a good idea to understand these various methods and be sure to ask prospective seller’s agents if they are willing to participate in an open listing agreement prior to signing any contracts.

What Is an Open Listing?

An open listing is one in which multiple real estate agents can market your home at the same time. Only the agent who brings in the offer the seller accepts will earn the commission. This means some agents who compete for an open listing will walk away with nothing.

In theory, this type of listing provides the seller with a lot of motivated marketing efforts on the part of participating agents who are eager to beat the competing agents. In practice, it’s not uncommon for some agents to put in far less effort because they don’t want to invest a lot of time and marketing resources if they aren’t sure whether they will be compensated.

Exclusive Agency Listing

These are agreements entered into with a brokerage that employs multiple agents. These agreements may also allow the homeowner to sell the property on their own if they’re able. This means that if you find a buyer independently, you won’t have to pay a commission.

Although it is less common, this method does reduce the risk for the agents since the brokerage may have a commission structure that ensures no one agent’s efforts go entirely unrewarded if the brokerage makes the sale.

Is There a Downside to Listing with Multiple Agents?

Yes, there can potentially be some issues with the open listing approach. Having multiple agents attempting to sell the same home can give home shoppers or buyer’s agents the impression that you’re desperate or there’s something wrong with the home. If it’s a desirable property, why would you need to have multiple agents attempting to sell it?

There can also be confusion and extra work on the part of the homeowner. You might be getting calls to schedule walkthroughs from multiple agents, leading to scheduling conflicts. Sellers might also receive competing advice on things like home staging or improvements.

The reduced motivation can also be a serious downside. If an agent knows they only have a 30 percent chance of earning the commission, they may be less inclined to put in a lot of time or effort into marketing your home. An agent who knows they will earn a commission after finding a buyer is more likely to give it their all to move fast and sell your home for top dollar.

Exclusive-Right-to-Sell Listings

The most common listings are exclusive listings, meaning a single agent you contract with has the right to sell your home and earn the commission. The contract you enter into will specifically stipulate that you cannot list with other realtors.

What to Know About Exclusive Right-to-Sell Listings

One of the more common confusions regarding exclusive listings is what happens if the seller’s agent doesn’t actually make the sale. If you, the homeowner, find a buyer or a buyer’s agent finds your house on the MLS and their client ends up putting in an offer, your exclusive right-to-sell listing still entitles your agent to the commission.

These contracts are not permanent. They usually specify a period of activity, often a few months. If your agent fails to find a buyer in that time, you can either find a new agent or sell the home yourself and not be obligated to pay a commission to the agent.

These contracts usually have a protection or safety clause to protect the agent from homeowners who want to dodge the commission by finding a buyer, then waiting for the exclusive contract to lapse. These clauses usually state that, for a set period of time after the listing agreement ends, you will still owe the commission if the listing agent introduced the property to the eventual buyer when the listing agreement was active.

Trying to circumvent the contract to prevent a seller’s agent from earning a commission for their work is unethical and opens up the seller to potential legal actions.

Which Type of Listing Agreement Is Better?

It often depends on the home and the local real estate market. Trying to get agents to compete in a zero-sum game is risky because there’s an incentive for the agents to put in minimal effort. Exclusive right-to-sell listing agreements are more popular for a reason – they typically make agents more motivated to sell a home quickly and maximize the price.

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