If you sign an exclusive agency listing agreement, you’ll work with a real estate agent to sell your home, but you won’t owe them a commission if you find the buyer yourself. This type of listing is rare. The more common option is an exclusive right-to-sell agreement, which requires you to pay your agent a commission no matter who finds the buyer.
An exclusive agency listing may sound appealing because it could save you a lot of money. Listing agent commission typically runs around 3% of the sale price, so avoiding it could mean saving $12,000 on a $400,000 home.
However, many agents are reluctant to take these listings because they risk doing significant work without getting paid. Even if you find a willing agent, they may be less motivated to invest time, marketing dollars, and effort into the sale — which may decrease the sale price and speed. Also, you and your agent are essentially competing to find the buyer, sometimes leading to disputes over who actually did.
For most sellers, a smarter alternative is signing an exclusive right-to-sell contract with a low-commission agent. You still save on commission, but your agent has a clear incentive to fully market your home. If you're interested in this option, Clever Real Estate can help you connect with top local agents who offer full-service support for a 1.5% listing fee.
What is an exclusive agency listing?
In an exclusive agency listing agreement, you give a listing agent the exclusive right to represent you in the transaction, just like a typical home sale. The big difference is that if you find the buyer, you don’t owe the agent any commission.
Exclusive agency listings are uncommon. Most brokerages don’t want to risk time and resources marketing a property and looking for buyers only to lose out on the commission if you bring the buyer. Plus, this type of listing creates a competitive dynamic between you and your agent, which isn't ideal, since agents are supposed to be looking out for your best interests.
Exclusive agency vs. exclusive right to sell
The main difference between an exclusive agency and an exclusive right to sell is who actually earns commission from the sale. With an exclusive right to sell, which is the commission model used in most home sales, the listing agent gets the commission no matter who actually finds the buyer.
In an exclusive agency, the seller has the option of avoiding paying their agent realtor commission if they can find their own buyer.
Open listing vs. exclusive agency listing
An open listing means that the seller is working with multiple listing agents at the same time, as opposed to just a single agent like you’d see in an exclusive contract. In an open listing, whichever agent actually brings the buyer is the one who earns the commission.
However, like an exclusive agency listing, if the seller is the one who finds a buyer, then they don’t owe any of the agents commission. Because open listings put agents at financial risk, they’re also rare.
Should I use an exclusive agency listing agreement?
On the surface, it sounds great to get help from a listing agent and avoid paying commission if you find the buyer. But in practice, exclusive agency agreements might work against your interests.
As Eric Bramlett, Broker and Owner of Bramlett Partners in Austin, says, “Exclusive agency listings involve less incentive to market the property to other agents, as they will be less likely to show it anyway.”
That said, exclusive agency in real estate may work for you if:
- You already have a likely buyer. If you know someone very interested in buying your property, an exclusive agency listing gives you backup professional support while maintaining your option to sell your house by owner. However, you’ll need to be upfront with your agent that you may already have an interested buyer.
- You have significant real estate experience. If you’re able to do much of the marketing and paperwork of selling a house yourself, you may be able to convince a real estate agent to agree to an exclusive agency listing agreement. In this situation, the agent would largely act as a safety net if you’re unable to find your own buyer.
An exclusive agency listing is likely not the right fit if:
- You want the best support from an agent. Most real estate agents refuse to do exclusive agency agreements because they risk investing money and time marketing your home without a guaranteed payday. As a result, when trying to find a real estate agent, you may only get agents who are inexperienced or half-hearted in their support.
- You want a fast sale. Exclusive agency agreements disincentivize agents from prioritizing selling your property since they may not get paid. If you want to sell your home fast, you should opt for an exclusive right-to-sell where the agent is assured that they’ll be paid if your house sells.
If you’re primarily considering an exclusive agency listing in order to save money, there are less risky alternatives. Consider working with a low-commission agent, where you’ll get full-service support, but with a much lower listing fee (up to half what many traditional realtors charge).
Exclusive agency listing pros and cons
✅ Pro: Potential commission savings
The biggest benefit of an exclusive agency listing is that you could potentially save on realtor commission fees if you find your own buyer. Traditional listing fees are around 2.5–3%, so on a $600,000 home, that translates to savings of $15,000–18,000.
✅ Pro: Access to the MLS
Because you’ll be represented by a real estate agent, your home will be listed on the multiple listing service (MLS), which only licensed real estate agents can list on.
The MLS is extremely important when selling a house because it can help you find more potential buyers faster. It's the go-to place for buyer’s agents to find properties for their clients. Your MLS listing will also be syndicated across many major real estate websites, like Zillow and Realtor.com, where buyers often browse homes on their own.
⚠️ Con: Reduced dedication from your agent
An exclusive agency listing gives agents fewer reasons to dedicate significant resources to marketing your home. As Erik Leland, Real Estate Broker with Realty First in Lake Oswego, Oregon, says, “No agent is thrilled to spend money on photos, marketing, and time only to have the seller find a buyer and pay nothing for their effort.”
Not only do agents risk wasting resources on your listing and getting nothing for it, but the arrangement also puts them in competition with you to find a buyer. You want your agent to be entirely on your side and looking out for your interests, not looking at you as somebody who could potentially take their commission.
⚠️ Con: Potential for conflicts
That sense of competition between yourself and your agent not only risks less dedication from your agent, but it can also result in conflicts. It’s not always obvious who should get credit for finding a buyer. For example, if a buyer contacts you directly instead of your agent after seeing your listing on the MLS (which only your agent can post to), there’s an obvious conflict over whether you or your agent should get credit.
⚠️ Con: Fewer agents available
You’ll have a difficult time finding an agent who is actually willing to work for an exclusive agency agreement. The top-performing agents know they can rely on traditional listings and don’t need to resort to arrangements where they risk not getting paid their listing fee. If an agent agrees to an exclusive agency, it may be because they’re inexperienced and need the work, or they may treat your listing as secondary to their other listings.
Exclusive agency listing example
Exclusive agency listing agreements won't necessarily have a title that says "Exclusive Agency Agreement."
Most brokerages use a standard listing agreement template and modify the language as needed, noting exclusive agency details in the terms of the agreement, like in this example:
Language like this — specifying a homeowner's right to sell their property without compensating the brokerage or listing agent — indicates an exclusive agency agreement.
Exclusive agency listing agreement: The bottom line
Exclusive agency agreements are rare for a reason. They put realtors at risk of putting in substantial work that they’re not compensated for, and they reduce your options as a seller to find the best realtor possible.
Jeff Burke, CEO of Jeff Burke & Associates, points out that "better alternatives for sellers include traditional exclusive right-to-sell agreements or full MLS listings where the agent is fully motivated to market your house and connect with buyers throughout the region."
While saving on realtor commission is attractive, the drawbacks of an exclusive agency agreement are usually too many for most sellers.
If your goal is to save money, a smart alternative is a low-commission realtor. You’ll pay around half of what most traditional realtors charge, while still getting full-service support from a top local agent.
- Answer 5 simple questions about your sale
- Get matched with 2 to 3 top local agents in minutes
- Choose the best fit and save up to 50% on listing fees
FAQ
What is an exclusive agency listing definition?
An exclusive agency listing is a type of agreement in real estate where a seller grants a single agent or brokerage the exclusive right to sell their property, but also retains the right to find a buyer themselves without paying any commission.
How do I get out of an exclusive agency agreement?
Exclusive agency agreements usually have an expiration date. If no buyer has been found by that time, you’re free to list elsewhere or find another agent. You can also ask your agent to end the agreement early, although they’re not obligated to do so. In some states, you’re allowed to end the agreement if your realtor isn’t fulfilling their duties, but doing so can be difficult to prove.
How long does an exclusive agency agreement last?
The exact length of an exclusive agency agreement is negotiable, but typically they’re for 3–6 months. Read your contract closely. Even if you sell after your agreement ends, if the buyer was introduced to you by your agent when the agreement was in force, the agent may still be owed commission.
