An “exclusive right to sell listing” is a listing agreement in which one broker or agent is given the exclusive right to sell a piece of property.
The assigned broker will receive a commission regardless of whether they have anything to do with the eventual buyer of the property, so long as the property sells within the terms and time limit of the agreement.
Even if the home seller finds a buyer on their own, they must pay the agent their full commission, unless otherwise specified in the contract.
If a seller wishes to exclude certain buyers from the contract, they should include the names of those people in the listing agreement before finalizing the deal.
But if you leave someone out, even a close friend or a family member who happens to buy the property during the term of the agreement, the broker will still be entitled to earn a commission.
Most Common Type of Real Estate Listing
That said, an exclusive right to sell listing is by far the most common real estate listing, primarily because it gives a broker or real estate agent the most realistic opportunity to earn a commission.
And the more likely a broker or agent is to receive a commission, the more time, money, and work they’ll put into the sale of your home. After all, if they had to duke it out with a bunch of other agents, their chances of earning any money would be diminished substantially. And it’s already an uphill battle to sell a property…
Under an exclusive right to sell listing, a broker or agent will typically list the property on the multiple listing service, market the home to other real estate agents, hold open houses, and possibly spend money on other forms of advertising.
So this type of listing can be looked at as a win-win for both the seller and the broker/agent, because both are considered highly motivated to get the sale.
Other listings such as an open listing and an exclusive agency listing are less appealing to brokers and agents because of the perceived difficulty to procure a suitable buyer.