Example of non exclusive open listing?

One agent may list the property at the full asking price, while another agent lists the same home as “For Sale for Over 60s” or as a “Retirement Home” at a lower price. This dual marketing targets different buyer demographics where the seller signed a non-exclusing (open listing) contract.

Sellers who want to try a non-exclusive listing approach often have more time and flexibility to sell and seek to save on commission fees by finding a buyer themselves. We see approximately 15-20% of listings promoted with multiple agents under non-exclusive agreements. This can result in the same property advertised in multiple ways – at different prices, with varying quality marketing, and not always disclosing the other listings.

To have a smooth sale, sellers should clarify upfront in any open listing that other non-exclusive agreements may exist. Doing so ensures transparency for all agents and buyers engaging on the property. Being upfront about any concurrent listings, even if positioned differently, allows buyers to make informed decisions and avoids conflicts later in the process.

A non-exclusive listing agreement knows also as open-type listing or open listing is a type of contract between a seller and a real estate agent that allows the seller to work with multiple agents at the same time, not granting exclusive right to sell to any of the agents.

It is also known as an open listing agreement. In this type of agreement, the seller retains the right to sell the property on their own without having to pay a commission to the agent.

Non-Exclusive Listings and non-exclusive agreements are a popular option for sellers who want to maximize their chances of finding a buyer.

By working with multiple agents, the seller can increase the exposure of their property to potential buyers.

This type of agreement is also beneficial for agents, as they have the opportunity to earn a commission if they are the one who brings a buyer to the property.

In a Non-Exclusive Listing with a non-exclusive listing agreement, the seller is not obligated to work exclusively with one agent. Instead, they can work with multiple agents at the same time.

The agent who brings a buyer to the property is the one who earns the commission. The seller can also sell the property on their own without having to pay a commission to any of the agents.

Non-exclusive listing agreement Key Takeaways

  • A non-exclusive listing agreement allows sellers to work with multiple agents at the same time.
  • In this type of agreement, the seller retains the right to sell the property on their own without having to pay a commission to the agent.
  • Non-exclusive listing agreements are beneficial for both sellers and agents as they increase the exposure of the property to potential buyers.

How Non-Exclusive Listing Works?

Definition and Basics

A non-exclusive listing agreement is a contract between a real estate agent and a seller that allows the seller to work with multiple agents to sell their property.

This means that the seller can list their property with more than one agent at the same time, and the agent can also represent other sellers.

What does a non-exclusive listing agreement should has in it?

A non-exclusive listing agreement should include the property’s description, price, commission rate, and the length of the agreement. It should also outline the agent’s responsibilities, such as advertising, showing the property, and negotiating with potential buyers.

The agreement should also state the seller’s obligations, such as maintaining the property in good condition and providing access to the property for showings.

What type of listing is a non-exclusive contract?

A non-exclusive listing agreement is a type of open listing agreement. An open listing agreement is a non-exclusive contract that allows the seller to work with multiple agents simultaneously to sell the property.

With an open listing, all contracted brokers can market the property or search for property at the same time, but only the broker who brings the ready, willing, and able buyer to the seller is entitled to the commission.

What is open non-exclusive listing agreement?

An open non-exclusive listing agreement is a type of listing agreement that allows the seller to work with multiple agents to sell their property.

In an open non-exclusive listing agreement, the seller can list their property with multiple agents, but only the agent who brings the buyer is entitled to the commission.

Open non-exclusive listing agreement wording

Here is an example of wording that could be used for a non-exclusive listing agreement between a property seller and real estate agent:

Non-Exclusive Listing Agreement

This non-exclusive listing agreement is entered into between [Seller Name] (“Seller”) and [Agent/Agency Name] (“Agent”) for the purpose of granting the Agent authorization to list the property located at [Property Address] (“Property”) for sale.

The Seller hereby grants the Agent the non-exclusive right to list and offer for sale the Property at a listing price of [Listing Price]. The Seller reserves the right to sell the Property independently without owing any compensation or commission to the Agent.

If the Agent procures a ready, willing, and able buyer to purchase the Property at the listing price and terms during the listing term, the Seller agrees to pay the Agent a commission of [XX%] of the sale price upon closing.

This non-exclusive listing agreement shall commence on [Start Date] and expire on [End Date], unless terminated earlier by either party in writing by providing 30 days notice.

Seller Signature: ______________________

Agent Signature: ________________________

The key aspects that make this a non-exclusive listing agreement are:

  • Seller can independently sell without owing commission
  • Agent only gets paid if they procure the buyer
  • Both parties can terminate earlier with notice

What type of realtors sign open listings?

Less experienced or part-time real estate agents are more likely to accept open listing agreements compared to full-time professionals. Here are some key reasons:

  1. New agents may use open listings to build their portfolios and gain experience while limiting risks without exclusivity clauses guaranteeing compensation.
  2. Part-time agents may have less capacity to fully market exclusive listings, so open listings allow participating only when directly closing sales.
  3. Agents who cannot commit to consistent showings and advertising due to other obligations can utilize open listings at their convenience.
  4. Newer agents may lack the strong buyer networks or negotiating skill to reliably directly sell homes, making open listings more practical to secure any commissions.
  5. Some agents utilize open listings to supplement exclusive listings – they will put in minimal efforts so rely on seller direct sales.

What is the agent's commision for non-exclusive listing?

With a non-exclusive or open listing, there is no guaranteed commission, and whichever agent produces the buyer by the closing date earns the full commission based on the sale price. The seller only pays commission contingently when an agent directly provides them with a buyer.

With a non-exclusive listing agreement, also sometimes called an “open listing”, the commission structure for agents is as follows:

  • The seller can hire any number of real estate agents to market their home under an open listing agreement.
  • There is no guaranteed commission or exclusive right to sell given to any one agent.
  • Whichever real estate agent finds a buyer that successfully closes on the home earns the full agreed-upon commission, which is usually between 5-6% of the home’s sale price.
  • If the seller finds the buyer themselves without any agent involvement, then the seller owes no commission.

This differs from exclusive listing agreements (Exclusive Right-to-Sell or Exclusive Agency) where the single, chosen listing agent earns the commission even if the seller procures the buyer directly.

Benefits and Drawbacks

The main benefit of a non-exclusive listing agreement is that it allows the seller to work with multiple agents to sell their property. This can increase the property’s exposure and potentially lead to a faster sale. However, the drawback is that the seller may have to pay multiple commissions if more than one agent brings a buyer. 

The agents may not put in as much effort since they are competing with each other to sell the property.

Non-exclusive listing agreement is a type of listing agreement that allows the seller to work with multiple agents to sell their property.

It has its benefits and drawbacks, and it is important for the seller to carefully consider their options before entering into this type of agreement.

How to find out with should you go with exclusive right to sell versus exclusive agency?

The main difference between an exclusive right to sell and an exclusive agency agreement is who gets paid the commission if the seller finds the buyer directly.

With an exclusive right to sell, the listing brokerage earns the commission no matter who procures the buyer. This provides stronger motivation for the brokerage to fully market the listing, since their compensation is secured. However, sellers lose the flexibility to directly negotiate with buyers not brought by the listing broker.

Do consider an exclusive agency agreement, if retaining the option of saving on the commission through an independent sale is important. While similarly hiring one brokerage under contract, the exclusive agent only gets paid if directly bringing the buyer. Yet this reduces the incentive for the brokerage to advertise and show the listing to the fullest potential.

Weigh if the marketing resources and buyer reach of the brokerage offsets the value of retaining a pathway for you to sell directly commission-free under the exclusive agency. Or if the exclusivity motivation and broader exposure from the broker locking in compensation with an exclusive right to sell best aligns with your sales approach and priorities.

Essentially, if wanting complete control even privately selling without commissions, the flexibility but risk of an exclusive agency may suffice. If optimizing exposure and securing broker efforts matter most, choose the exclusive right to sell. Compare tradeoffs between exclusivity and control when selecting the ideal listing agreement type.

How Non-Exclusive Listing Works

Non-exclusive listing is a type of real estate listing agreement where the seller can work with multiple agents to sell their property.

Unlike an exclusive listing agreement, the seller is not tied to a single agent and has the freedom to work with more than one agent at the same time.

In this section, we will discuss how non-exclusive listing works and answer some common questions about this type of listing agreement.

Determining whether to sign an exclusive or non-exclusive listing agreement is an important early step when selling a house. Though exclusivity motivates an agent’s full efforts, open listings provide more flexibility.

For example, a non-exclusive or open listing allows sellers to independently market and sell without owing commission. You retain the option of a private sale. However, the agent only gets paid if procuring the buyer directly. There is less incentive pushing an open listing, as you directly compete.

Process and Procedures

The process of non-exclusive listing is straightforward. The seller signs a listing agreement with one or more agents, and the agents market the property to potential buyers.

The seller is free to work with other agents or sell the property on their own.

If the property is sold by an agent, the seller pays a commission to that agent, but not to any other agent who may have been involved in the marketing of the property.

In what market non exclusive listing should be used best?

Non-exclusive listing agreements are most commonly used in a seller’s market, where there is a high demand for properties. In this type of market, it is easier to find buyers, and the seller may not need the exclusive services of a single agent. 

Non-exclusive listing agreements can also be useful in a slow market where it may be difficult to find a buyer.

Can you sell luxury homes as non exclusive listing?

Yes, luxury homes can be sold using non-exclusive listing agreements.

However, luxury homes may require a higher level of marketing and expertise, and the seller may prefer to work with a single agent who specializes in luxury properties.

Can you sell condo as non exclusive listing?

Yes, condos can be sold using non-exclusive listing agreements. The process is the same as for any other type of property.

Can you sell as-is homes with non exclusive listing?

Yes, as-is homes can be sold using non-exclusive listing agreements.

However, the condition of the as-is property may affect the marketing and sale of the property, and the seller may need to work with an agent who specializes in selling as-is homes.

Who pays for the marketing on non-exclusive listings?

With a non-exclusive or open listing agreement, the seller is typically responsible for paying for all of the marketing and promotion of the listing, rather than it coming out of the listing agent’s pocket.

Since an open listing allows the seller to engage multiple brokers and real estate agents, none of them are willing to invest their own money into marketing that listing. With an open listing:

  • The seller will usually have to pay upfront out of pocket for things like:
  • Professional photography
  • Virtual Staging or Home Staging
  • Listing on the MLS
  • Print/online advertising
  • Open houses
  • Lawn signs
  • Each agent the seller enlists may provide some guidance on marketing, but will expect the seller to cover expenses.
  • If an agent does elect to do any optional marketing for the open listing, they may require reimbursement from the seller after closing.

So while a seller may save on commission fees upfront with an open listing, it generally requires more work and cash investment from them to market the home successfully.

Many sellers see exclusive listing agreements as more advantageous for this reason.

Role of Real Estate Agents

Real estate agents play an important role in non-exclusive listing agreements. The agents market the property to potential buyers and help the seller negotiate the sale. 

However, since the agents are not working exclusively for the seller, they may not invest as much time and effort into marketing the property as they would with an exclusive listing agreement.

Therefore, it is important for the seller to choose agents who are experienced and have a good track record in selling properties similar to theirs.

Comparing Non-Exclusive and Exclusive Listings

When it comes to selling a property, a seller has the option to choose between a non-exclusive and an exclusive listing agreement.

There is a difference between an exclusive and non-exclusive listing.

Both agreements have their own advantages and disadvantages, and it is important for the seller to understand the differences between the two before making a decision.

Key Differences

The main difference between a non-exclusive and an exclusive listing agreement is the level of commitment and control the seller grants to the agent.

In an exclusive agreement, the seller appoints one real estate broker to act as the seller’s sole agent.

This means that only one broker can assist in selling the property, and the seller has less control over the sales process. 

On the other hand, a non-exclusive agreement allows the seller to engage any number of brokers as agents, giving the seller more control over the sales process.

Another key difference is the level of services provided by the agent. In an exclusive agreement, the agent provides more dedicated services, such as marketing and advertising the property, negotiating with potential buyers, and handling all paperwork and legal issues.

In a non-exclusive agreement, the agent provides less dedicated services and the seller has to handle some of the tasks themselves.

Choosing the Right Option

When choosing between a non-exclusive and an exclusive listing agreement, the seller should consider their goals, the market conditions, and their level of involvement in the sales process.

If the seller wants more control over the sales process and is willing to handle some of the tasks themselves, a non-exclusive agreement may be the right option.

On the other hand, if the seller wants a more dedicated and hands-off approach, an exclusive agreement may be the better option.

What Exclusions to List on a Non-Compete Agreement

If the seller chooses a non-exclusive agreement, they should consider listing certain exclusions on the non-compete agreement to protect their interests.

For example, the seller may want to exclude certain types of buyers, such as family members or friends, from the agreement.

They may also want to exclude certain types of properties, such as commercial properties or properties located in a certain area. By listing these exclusions, the seller can ensure that they have more control over the sales process and protect their interests.

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Non-Exclusive / Open Listing Agreement Example

“Seller hereby authorizes Broker on a non-exclusive basis to procure a buyer for the Property at the List Price and terms stated herein.

However, Seller reserves the right to sell the Property themselves or enter into listing agreements with other brokers. If Broker succeeds in procuring a buyer who closes on the Property, Seller shall pay Broker the Brokerage Fee defined herein.

Any other broker who procures buyer shall be entitled to same. Otherwise Seller owes no fee.”

The key differences obviously being:

  • Exclusive obligations the seller to pay one brokerage the fee no matter what
  • Non-exclusive means the brokerage must be the procuring cause to earn fee

This demonstrates typical language that distinguishes exclusive vs. non-exclusive brokerage agreements.

Exclusive Right-to-Sell Listing Agreement Passage

“Seller hereby grants to Broker the absolute, sole, and exclusive right to sell the Property for the Listing Period stated herein. If the Property is sold during the Listing Period – whether by Broker, Seller, or any other party – Seller shall pay Broker the Brokerage Fee stated herein.”

How many Different Types of Listing Agreements for Selling a Home?

Exclusive Right to Sell, Exclusive Agency, and Open Listing are the three main types of listing agreements, with Exclusive Right to Sell being the most commonly used by sellers. The listing agreement determines how the agent/broker gets paid if and when the home sells.

There are typically three main types of listing agreements for selling a home:

  1. Exclusive Right to Sell Listing: This gives the listing agent the exclusive right to market and sell your home during a specified period. If the home sells during that time – whether the listing agent finds the buyer or you find the buyer yourself – you still have to pay the listing agent’s commission. This is the most common type of listing.
  2. Exclusive Agency Listing: This is similar to an Exclusive Right to Sell listing in that you hire one real estate agent/brokerage to market and sell your home. However, if you find the buyer yourself, you do not have to pay the listing agent a commission. The listing agent only gets paid if they are the one who finds the buyer.
  3. Open Listing: With an open listing, you can hire any number of agents to market your home instead of just one. Whichever agent finds the buyer that successfully purchases your home gets the full commission. Open listings are not very common as there is little incentive for agents to spend time and money marketing a home they may not get paid for selling.

When the seller is not obligated to pay a commission?

The main situation where a seller is not obligated to pay a real estate commission is with an Exclusive Agency Listing.

With an Exclusive Agency Listing agreement:

  • The seller hires one listing agent/brokerage to market and sell their home.
  • If that listing agent finds the buyer, the seller must pay the agent the commission spelled out in the listing agreement.

However, if the seller finds the buyer on their own, without the help of the listing agent, then the seller does not owe the listing agent any commission.

This differs from an Exclusive Right to Sell Listing, where the listing agent gets paid the commission no matter what – even if the seller procures the buyer themselves.

  • Exclusive Right to Sell = Seller must pay commission no matter what
  • Exclusive Agency = Seller only pays commission if listing agent finds the buyer
  • Open Listing = Whoever finds the buyer gets the commission

The Exclusive Agency agreement is the only type of listing where there are situations where the seller is not obligated to pay a real estate commission.

Is multiple listing service a non-Exclusive Listing?

Listings in the MLS can either be exclusive (where one brokerage represents the listing) or open (available to any brokerage). The MLS itself is not a type of listing agreement but rather a marketing platform. Listings entered into the MLS will generally be under exclusive agreements.

A multiple listing service (MLS) listing is not the same thing as a non-exclusive or open listing.

Here is why:

  • Multiple Listing Service (MLS): This is essentially a database of properties listed for sale in a particular geographic area that is accessible to all real estate agents and brokers who are members of that MLS system. Sellers allow their listing agent to put the property listing in the MLS so other agents can also market it.
  • Types of Listing Agreements:
  1. Exclusive Right to Sell – Seller hires one listing brokerage, must pay that brokerage a commission no matter what. Listing would typically be entered into the MLS database.
  2. Exclusive Agency – Similar but seller only pays commission if that brokerage finds the buyer. Can also be marketed in the MLS.
  3. Open Listing – Seller can hire any number of agents, whoever finds the buyer gets the commission. May or may not be submitted to MLS by the various agents.

Which is better - non exclusive listing or exclusive listing?

With a non-exclusive or open listing agreement, the seller is typically responsible for paying for all of the marketing and promotion of the listing, rather than it coming out of the listing agent’s pocket.

Since an open listing allows the seller to engage multiple brokers and real estate agents, none of them are willing to invest their own money into marketing that listing. With an open listing:

  • The seller will usually have to pay upfront out of pocket for things like:
  • Professional photography
  • Listing on the MLS
  • Print/online advertising
  • Open houses
  • Lawn signs
  • Each agent the seller enlists may provide some guidance on marketing, but will expect the seller to cover expenses.
  • If an agent does elect to do any optional marketing for the open listing, they may require reimbursement from the seller after closing.

So while a seller may save on commission fees upfront with an open listing, it generally requires more work and cash investment from them to market the home successfully. Many sellers see exclusive listing agreements as more advantageous for this reason.

Which is better - non exclusive listing or exclusive listing?

While a non-exclusive open listing may seem financially appealing with lower commissions, statistics show homes under exclusive listings sell faster and for higher sale prices on average.

With exclusive agreements, more of the marketing burden also falls to the listing agent rather than the seller.

In most cases, an exclusive listing agreement is better for the seller than a non-exclusive or open listing agreement.

Here’s a quick comparison of the advantages of each:

Exclusive Listing Advantages:

  • Committed agent incentivized to sell
  • Listing agent markets aggressively
  • Professional photography/staging
  • Higher sale prices on average
  • Less work for the seller
  • More legal protections

Non-Exclusive Listing Advantages:

  • Seller saves on commission fees
  • Potentially quick sale if seller finds buyer

Non-exclusive open listings work occasionally, an exclusive right-to-sell or exclusive agency agreement is typically recommended to achieve the best price in the quickest timeframe.

The higher commissions pay off via higher sale prices and better marketing exposure. So for most sellers, an exclusive listing ends up being the better option overall.

The truth about exclusive right to sell

Here are some key truths about exclusive right to sell listing agreements that sellers should know:

You Must Pay the Commission – Even if you find the buyer yourself, with an exclusive right to sell listing you still owe the listing brokerage the commission spelled out in the contract. Their compensation is locked in.

The Brokerage Markets Aggressively – This exclusive arrangement incentivizes brokerages to invest significant time and money into advertising and showing your listing to buyers. They want to ensure they get paid.

You Lose Negotiation Flexibility – An exclusive right to sell obligates you to refer any buyers not working with your brokerage back to them. You cannot negotiate directly without broker involvement.

You Grant Complete Exclusivity – No other brokerages can list or show the property during the contracted time period. This exclusivity is waived if the listing brokerage fails to adequately market the home.

The Brokerage Controls the Deal – They run the showings, handle negotiations, set open houses, etc. You turn over significant control in exchange for their contractual motivation tied to commission guarantees.

You Must Understand the Commitment – Exclusive right to sell listings should not be signed lightly. Make sure you understand and can comply with the listing brokerage’s expected efforts to earn that commission.

While exclusive rights to sell encourage broker effort, know it comes at the cost of commission obligations and restricting direct seller involvement. Weigh both benefits and limitations before signing over such exclusive listing control.

What is the main reason why exclusive listings are better?

With an exclusive listing you get better marketing, broker accountability, access to more buyers, and better sale prices. The commission fees pay for themselves in the end through better exposure and higher offers.

The main reasons why exclusive listing agreements tend to be better for sellers compared to non-exclusive open listings are:

  1. Motivated Agent: With an exclusive listing, you have one committed agent who is invested in marketing and selling your home because their commission is on the line. There is less motivation for agents to spend time and money marketing an open listing that has no secured commission.
  2. Marketing Exposure: Your exclusive agent will generally market your home more aggressively across more channels – print ads, digital ads, yard signs, open houses, etc. Open listings typically get minimal marketing exposure.
  3. Legal Protections: Exclusive listings allow you to require satisfactory marketing performance from your agent in the contract. It’s much harder to hold agents accountable with open listings.
  4. Pool of Buyers: By allowing your exclusive listing agent to list the property on the MLS, you gain access to their network of buyer agent contacts. Open listings may not always get submitted to the MLS.
  5. Sale Price: Statistics consistently show that homes sell for more money under exclusive listing agreements compared to open or non-MLS listings.

What is an open listing?

An open listing is a non-exclusive agreement where the property seller retains the right to sell independently without owing commission. To have an open listing, the seller grants permission for an agent to offer the property for sale, but does not guarantee compensation if procuring their own buyer.

An open listing allows the seller to tap into an agent’s marketing resources and buyer networks, while still allowing the flexibility of a private sale. If the agent directly secures a buyer, the seller pays an agreed commission percentage. However, unlike an exclusive listing, the seller can also independently market and sell without commission fees.

In contrast, an exclusive listing contractually obligates the appointed agent’s compensation regardless of who procures the buyer. This guarantees motivation, but the seller forfeits potential savings from privately closing a sale.

Weighing flexibility against exclusivity allows sellers to strategically align with broker motivations. Open listings let sellers use agent marketing yet keep private sales commission-free.

Do expert listing agents sign open listing agreements?

Expert listing agents generally avoid open listing agreements. Here is a brief explanation:

Expert listing agents prefer exclusive listing contracts over open listings for several key reasons:

  1. Exclusivity incentivizes full agent efforts to market and sell the home, whereas open listings disincentivize this by allowing independent seller sales.
  2. Without exclusivity guarantees, the agent takes on more risk by investing time and resources into an open listing that may not yield a commission.
  3. Expert agents rely on their skills and databases to generate buyer leads, meaning they can usually close sales directly. Open listings only pay out if they directly bring the buyer.
  4. Limiting their services to exclusive listings allows expert agents to focus efforts only on motivated sellers willing to align incentives through contracted commissions.

While open listings may seem appealing to some sellers, they generally don’t align with the business models and motivations of expert real estate agents. These agents rely on exclusive listing agreements to provide reliable ROI on their marketing investments and buyer lead efforts. The exclusivity clause incentivizes their best work.