An open listing is a non-exclusive real estate agreement that allows multiple agents (or the homeowner) to find a buyer without one agent making all the commission.
This type of listing agreement works best for people looking to sell their home on the market unconventionally, such as selling for sale by owner (FSBO), but who still want some realtor support.
Open listings come with benefits, including:
- Not paying commission if you find your own buyer
- Working with multiple real estate agents
However, most agents avoid open listings because commission isn’t guaranteed, and those participating in non-exclusive agreements often give these listings less attention.
If you’re curious about open listings, it's best to weigh your options carefully. This guide will help you understand what to expect from open listings and give you a realtor’s perspective on these agreements.
🔑 Key Takeaways
- Open listing agreements are non-exclusive, so home sellers can sign more than one if they want to source buyers from multiple agents.
- An open listing might make sense if you have an unusual home, like a ten-bedroom, that's more difficult to sell, and you want to increase your chances of finding a buyer.
- Home sellers using an open listing agreement with an agent can still sell FSBO without paying any commission. Agents only get commission from an open listing agreement if they find a buyer.
- An open listing agreement doesn't guarantee an agent will get paid, so some agents won't sign one, or they might limit the scope of their services.
How Open Listings Work
In an open listing, the seller is primarily responsible for marketing and selling their home. Agents play a support role in finding a potential buyer, but they don’t actively market the house and will only make commission if they bring a buyer.
Here’s how an open listing typically works:
- The seller enters the open listing with an agent and agrees to list the home for a set price.
- If agreed upon, the agent lists the home on the local multiple listing system (MLS) and looks for a buyer.
- After the home is listed, the seller does most of the heavy lifting, including fielding phone calls, showing the house, negotiating price, etc.
- If the agent (or any agent, in some cases) finds an interested buyer, they can sell the home.
When the home sells, the homeowner will pay no seller’s commission if they find a buyer, OR they will pay the agent if they find a buyer. Typically, seller’s commission is around 2.5% (about $12,500 for a $500,000 home).
✍️ Editor's Note
You might have to pay commission (even if your agent doesn’t find a buyer): Despite the 2024 NAR settlement, which clarifies that buyers are responsible for the buyer’s agent commission, you might still need to offer to pay a 2.5% to 3% buyer’s agent commission (BAC) as an incentive.
Negotiating to pay the BAC can attract more potential buyers who don’t want to pay agents out of their own pocket, and in most markets, it is still standard procedure for sellers to pay the BAC.
Open Listing vs. Exclusive Listing
| Feature | Open Listing | Exclusive Right to Sell |
|---|---|---|
| Agent commitment | Low | High |
| Seller flexibility | High (can sell FSBO) | Low (agent earns commission no matter what) |
| Agent commission guarantee | Only if agent finds the buyer | Guaranteed if the home sells |
| Buyer exposure | Moderate (MLS-only) | High (MLS, full marketing) |
Other listing agreements also include:
- Exclusive agency: The seller hires one broker to sell, but retains the right to sell on their own without a commission
- Net listing: The agreed-upon commission is any profit over listing. Often considered unethical and illegal in many states.
Open Listing Pros and Cons
✅ Pros
- You can work with multiple agents at once
- You can sell FSBO without paying commission
- Good for hard-to-sell or unique properties
❌ Cons
- Agents may be less motivated to sell
- No one advocates for your best interests
- Harder to coordinate showings between agents
- Many agents decline to work under this model
When Does an Open Listing Make Sense?
Selling through an open listing is challenging, especially if you don’t have experience in real estate, but it may pay off if:
- You’re comfortable showing and negotiating on your own
- You have a highly niche or difficult-to-price home
- You want to avoid full-service listing commission
- You already know potential buyers, but want to work with an agent as a backup
Jorge Martinez De Castro, real estate broker at JMC Real Estate in Miami, FL, says that open listings work best for people who have at least some experience with selling a house and who want to pay for a flat-rate service:
“The seller pays a nominal fee to have their property listed on the MLS, something only a licensed agent can do. They gain the benefits of exposure through syndication but end up taking on all the other labor-intensive roles.”
In these cases, sellers pay a set fee to list on the MLS to gain marketing exposure while selling FSBO. Depending on the package, prices typically range from $95 to $500.
What’s Included in an Open Listing Agreement?
Open listing agreements include “non-exclusive” language that lets them sell independently or enter into open agreements with other realtors.
If you enter an open listing, your agreement should also outline the:
- Agreed purchase price
- Commission structure if the agent finds a buyer
- Duration of the agreement
- Non-disclosure expectations
Before signing the agreement, it’s essential to read through the document carefully and ask questions about anything you don’t understand.
You may also want to consult a real estate attorney to review the agreement before signing to ensure you clearly understand your responsibilities as the seller.
📝 Always read the fine print. Open listing agreements often include clauses limiting what the agent can share with buyers, including:
- Your motivation for selling.
- The lowest price you will accept.
- Anything that limits your ability to negotiate.
Why Some Agents Avoid Open Listings
The most common reason agents avoid open listings is that making money is not guaranteed. If your agent invests time and money into marketing your home, but you find the buyer, then they can’t recoup those expenses.
According to Martinez De Castro, open listings can also create headaches because sometimes it’s hard to prove who actually found the buyer, which may lead to commission disputes.
Because of these potential drawbacks, many agents put less effort into marketing, staging, and advice. And this lack of broker motivation affects the seller:
“As a result [of low broker motivation], entering into an open listing would most likely yield fewer showings and less competitive bidding, which could equate to a significant loss,” he says.
Should You Choose an Open Listing?
Open listings increase sellers' flexibility but don’t work for everyone. An exclusive listing agreement might work better if you want full-service support and dedicated marketing.
But if you’re confident in finding buyers or just want backup help from agents, an open listing could be a low-risk option worth trying.
FAQs About Open Listings
An open listing could be a good idea if you already have a buyer lined up or have experience selling homes and only want realtor help as a backup.
No. You don’t have to pay multiple agents in an open listing. You will only pay the agent who brings you a buyer (if you sign multiple agreements), or you pay no one if you find your own buyer.
You might still be expected to pay the buyer’s agent commission, which is negotiable at the offer stage.
Yes! Open listing agreements are non-exclusive, meaning you can find potential buyers and sell independently if you find the right buyer.
Entering an open listing means your realtor can still bring a buyer to the table. With flat-fee MLS listings, you only pay for a realtor to list your home on the MLS, and they are hands-off after the property is listed.