What characterizes an open listing?

An open listing is characterized by the seller agreeing to pay a commission only to the broker who successfully sells the property. This type of listing allows the seller to work with multiple brokers, but only the one who brings a buyer will receive compensation.

This arrangement provides flexibility for the seller, as they can also market the property independently and are not obligated to work exclusively with one broker. It incentivizes brokers to find a buyer quickly since they receive payment only upon completing a sale. In cases where multiple listings may not yield a guaranteed commission for every broker involved, the open listing setup clearly delineates the commission structure, focusing on the success of the sale rather than shared obligations among brokers.

The characteristics of an open listing discourage a scenario where a single broker is designated to market the property exclusively, thus permitting other brokers to attempt their own sales strategies without the concern of being excluded from potential commission earnings.