What is an open listing in real estate?

An open listing in real estate refers to a type of listing agreement where multiple brokers can be involved, and the property owner retains the right to sell the property themselves as well. In this setup, the broker's commission is contingent upon them being the first to find a buyer who satisfactorily completes the purchase. This motivates brokers to actively seek potential buyers while also allowing the owner flexibility in how they market or sell the property.

The nature of an open listing means that there is no exclusivity granted to any one broker, and if the owner sells the property without broker assistance, no commission is owed to any agent. This arrangement contrasts with exclusive listings that provide a single broker with the sole right to market the property, thereby giving them a stronger financial incentive to take more proactive steps in promoting the sale.

Understanding this concept is crucial for real estate professionals, as it behaves differently than other types of listings which offer varying degrees of broker control and exclusivity.