Open Listing
Definition and meaning of Open Listing in real estate.
An open listing is a non-exclusive real estate agreement that allows a property owner to hire multiple brokers to sell the home simultaneously. Under this contract, the seller only pays a commission to the broker who successfully brings a buyer, and retains the right to sell the property independently without paying any commission.
In more detail
This type of agreement is rarely used in residential real estate because it does not guarantee a commission to any single agent, which reduces the incentive for brokers to spend money marketing the property. Open listings are more common in commercial transactions or for hard-to-sell properties where the seller wants maximum flexibility.
Properties sold under these agreements are usually not entered into the local Multiple Listing Service, meaning the seller must rely on the individual reach of each hired broker. For buyers, these properties can sometimes be difficult to purchase because communication between multiple brokers and the seller can be disorganized.
Key facts
| Category | Buying & Selling |
|---|---|
| Exclusivity | Non-exclusive |
| Who pays | Seller pays only the agent who procures the buyer |
| Watch out for | Agents may not prioritize marketing the property |
An owner signs open listing agreements with three different real estate agencies, hoping that the agent who finds a buyer first will earn the commission while the others receive nothing.
Frequently asked questions
How does an open listing differ from an exclusive right to sell?
In an exclusive right to sell, one broker is guaranteed a commission regardless of who finds the buyer. In an open listing, multiple brokers compete, and the seller pays nothing if they find the buyer themselves.
Can an open listing be placed on the Multiple Listing Service (MLS)?
Most local MLS rules do not allow open listings because they require an exclusive agreement to list a property on the system.