What characterizes an open listing in real estate?

An open listing in real estate is characterized by a nonexclusive agreement that allows multiple brokers to sell the property. This means that the property owner can list their home with several different real estate agents at the same time, giving each of them the opportunity to find a buyer. If any broker successfully sells the property, that broker will receive a commission. This arrangement provides flexibility for the seller and can potentially lead to a quicker sale, as more brokers are motivated to work to find a buyer.

In contrast, an exclusive agreement with one broker would limit the representation to just that single agent, while a listing limited to online advertising does not encompass the broader market interactions inherent in an open listing. Finally, a contract that sets a fixed sales price describes a selling mechanism rather than the nature of the listing agreement itself. Thus, the defining characteristic of an open listing is the ability to engage multiple brokers in the selling process.