{"id":1671,"date":"2021-12-15T12:00:10","date_gmt":"2021-12-15T17:00:10","guid":{"rendered":"https:\/\/houzez.co\/?p=1671"},"modified":"2021-12-16T10:15:44","modified_gmt":"2021-12-16T15:15:44","slug":"open-listing","status":"publish","type":"post","link":"https:\/\/houzez.co\/open-listing\/","title":{"rendered":"Open listing: What it is and what you should know about it"},"content":{"rendered":"\n

So, how do you define open listing? What is an open listing in real estate? What does owner agent mean? All questions that you\u2019ll hear at some point if you\u2019re into real estate. An open listing is a situation where you get to sell the home by yourself.<\/p>\n\n\n\n

The open listing definition makes it a non-exclusive agreement, which means that the open listing agreement form can be signed by multiple brokers, but only the one who brings a buyer with a valid offer will get paid. This is a great choice of a listing agreement California can offer, among other countries.<\/p>\n\n\n\n

The difference between an open listing agreement and a regular one is that the owner typically pays just the selling broker\u2019s commission, making it about one half of what they\u2019d usually pay. Why would you opt for an open listing real estate sale?<\/p>\n\n\n\n

Well, the owner is unrepresented. Therefore, they just pay the broker to represent the buyer of the residential listing. And, if the owner finds a buyer that agrees to the residential listing agreement and buys it, all by themselves, the owner doesn\u2019t owe a commission to the brokers.<\/p>\n\n\n\n

Why would a seller opt for an open listing contract?<\/h2>\n\n\n\n

For example, if there are plenty of buyers, the seller might opt for an open listing definition real estate sale. You can negotiate this kind of listing with each broker, and you can do either identical or completely different commission. The seller gets more flexibility, at the expense of being limited by the number of potential buyers.<\/p>\n\n\n\n

If there are more buyers than sellers with attractive listings, the risk is minimal. The main risk is actually exposure, or lack thereof, to all buyers. Some sellers though, think that they can adequately advertise their home, and would rather not hire an agent.<\/p>\n\n\n\n

However, agents don\u2019t just bring the ability to find a buyer. An experienced agent will save you from mistakes, and sellers might not recognize that until they actually make that mistake. At that point, it\u2019s too late.<\/p>\n\n\n\n

Why would an agent agree to open listing?<\/h2>\n\n\n\n

If an agent works with a lot of buyers, they might agree if they are certain they will get paid for bringing a buyer. They don\u2019t advertise the property or spend any money on promotion unless they\u2019re sure that the potential buyers will go through them.<\/p>\n\n\n\n

We might be discussing a special property, highly unique, and it might appeal to a lot of buyers. If the seller doesn\u2019t want to agree to an exclusive right-to-sell listing, the agent might see an open listing as the only solution. Open listings are a fairly uncommon sight, but they are far from impossible.<\/p>\n\n\n\n

For example, in a rural setting where you don\u2019t want to commit to a single brokerage, this might be an option. A rural listing commonly covers a large area, where word of mouth travels fast. Sellers can list with every broker if they\u2019re willing, and only pay the brokerage that gets them the winning offer.<\/p>\n\n\n\n

However, the seller doesn\u2019t have any representation. There\u2019s no agent to help them with the negotiations, disclosures or inspection. There are no fancy photos, professional marketing or negotiations. The seller is, in fact, only paying another agent to negotiate with the buyer.<\/p>\n\n\n\n

What are the pros and cons?<\/h2>\n\n\n\n

Advantages:<\/h3>\n\n\n\n