Which type of listing allows the seller to list the property with multiple brokers?

When selling your home, increasing the chances of a successful sale must be of paramount importance. Listing your home with several real estate agencies through the use of an open listing agreement will make sure your home gains as much exposure as possible and improve the odds of a sale.

Open Listing Agreement

1. Open listing agreements are non-exclusive agreements between sellers and real estate brokers. With an open listing agreement, a homeowner can have her home listed by many brokers if she desires. Additionally, homeowners can simultaneously sell their homes on their own and not owe any broker commissions. Also, when a broker does sell a home under an open listing, the seller typically owes a smaller commission.

Commissions

1. Real estate sales commissions offered under open listing agreements are smaller because they're only paid to a single broker. Under other real estate agreements, sellers pay larger commissions because brokers are involved for a seller and buyer. Under exclusive right to sell listings, for example, listing brokers often have to offer part of their commission to attract brokers and their buyers. On the other hand, open listing agreements even allow sellers to sell their homes themselves and pay no commission at all.

Pitfalls

1. Open listing agreements in real estate often create ugly competition between sellers and brokers to find buyers. Plus, real estate brokers often dislike an open listing agreement with a seller because the seller can withdraw the listing at any time. Unfortunately, real estate brokers usually won't take an open listing agreement. Brokers also tend not to devote much time or money on open listings because there's no reasonable expectation of a commission for doing so.

Other Listing Agreements

1. By far, real estate brokers prefer the exclusive right to sell listing because they have complete control of the transaction. Under an exclusive right to sell listing, the broker receives a commission even if the seller finds a buyer. An exclusive agency real estate listing contracts the seller to just one broker, but the seller owes no commission if he finds a seller. Real estate brokers are often reluctant to work under exclusive agency listings.

What Is an Open Listing?

An open listing in real estate is a property for sale which 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 agent 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 listing 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 commission regardless of who sells the property.

Key Takeaways

• Home sellers may have the option of offering a real estate agent an exclusive listing or an open listing.
• An open listing allows other local real estate agents to compete to find a buyer for the property.
• An exclusive listing gives the sole agent an incentive to work hard for the sale.
• An open listing offers the possibility of more showings and wider interest in the home.

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 into it because the commission is likely to be split.

The open listing arrangement stands to benefit the seller by offering them access to more agents to sell their property.

Real estate firms may have rules that govern whether their agents may participate in open-listing arrangements. Some firms allow open listings to be accepted but not advertised, although the agents are allowed to engage clients they already have as potential buyers.

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

What Does 'Exclusive' Mean on a Real Estate Listing?

The word exclusive indicates that the listing for the property is being handled by a single agent. No other agent can show the property or negotiate a sale.

If it is an open listing, any agent can show the property and negotiate a deal.

Is an Exclusive Listing or an Open Listing Better for the Seller?

The seller who offers a real estate agent an exclusive will be getting a representative who is determined to make a sale, and will spend the time and energy necessary to do it.

An open listing may get the property higher visibility. Other agents who see the listing can canvass their own networks of buyers for a possible match.

That said, real estate agents balk at accepting open listings. An exclusive might be the way to go at least initially. If the house fails to sell, consider the open option.

Does an Open Listing Have an Expiration Date?

Most real estate listings have an expiration date, It might be 90 days or 180 days. The expiration date is not very relevant in an open listing, since the contract does not commit the seller to paying a commission to the real estate agent.

In which type of listing agreement does a seller employ multiple brokers?

Which type of listing allows the seller to list the property with multiple brokers quizlet?

What type of listing agreement allows multiple brokers to be involved in the marketing of the listing but allows only one broker to receive the commission?

Which type of listing agreement is the most popular with brokers?