Definition: An open listing lets an owner sell her home by herself. It is a non-exclusive agreement, meaning the owner may execute open listings with more than one real estate broker and pay only the broker who brings an able buyer whose offer the owner accepts.
The big difference is an owner will probably pay only a selling broker's commission, which is about one-half of typical fees. The reason is because the owner is unrepresented. Therefore, owners do not pay a broker to represent the owner, but do pay the broker to represent the buyer. However, if the owner finds the buyer herself, the owner will not owe anybody a commission.
Examples:
Mary gave an open listing to three real estate companies: Smith Brokerage, Allen Realtors and All City Agents. Smith Brokerage brought her a buyer who submitted an acceptable offer, so Mary paid Smith Brokerage a commission for representing the buyer.
