Posted in Finance, Accounting and Economics Terms, Total Reads: 419
Definition: Open Listing
An open listing agreement is a non exclusive agreement between the home owner who wants to sell it on her own and multiple real estate agents. The agent that gets a valid and able buyer who submits an acceptable offer to buy, gets the commission.
Hence only a selling broker’s commission is payable which is half of the typical fees. The reason for this is that here the broker or the real estate agent is not representing the seller i.e the seller is unrepresented. It is the buyer whom he represents. Also if the owner can himself find a buyer he does not need to pay to the agent.
Examples: Tom gave an open listing to three real estate agents namely: S&M realtors, Smith and Jones co, Green pastures firm. Green pastures succeeded in getting him a buyer who submitted an acceptable offer. Tom thus paid them brokerage commission to represent them as the buyer.