What is a Listing in Real Estate?

When it comes to the real estate industry, one term you’ll often come across is “listing”. But what is a listing in real estate?

Listing Real Estate Definition

A real estate listing refers to a property that is for sale, lease, or rent and is represented by a real estate agent or broker.

Real estate professionals use listings to organize properties in an alphabetical listing to streamline the process for home buyers and sellers.

An exclusive authorization often requires an employment contract with a buyer’s agent to manage the home sale for a specific period, during which they can accept offers.

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Table of Contents

What is a Listing Agreement?

In the broadest sense, a listing is an agreement between a property owner and a real estate broker. This agreement authorizes the broker to act on behalf of the owner in the sale or lease of a property. Some properties can have multiple real estate agents, co-listers, and more. Let’s learn more about it.

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Types of Listings Agreements with Real Estate Agents

There are several types of real estate listings agreements, each with its own specific terms and conditions. Here are a few types of listing meaning.

Type	Description	Example
An Open Listing	In an open listing allows any number of real estate agents to try and sell the property. The listing agent who brings the buyer gets the commission, while the owner can also sell the property independently.	You want to sell your house. You sign open listing agreements with multiple agents. Whoever sells your home first earns the commission.
The Exclusive Agency Listing	This contractual agreement means only one broker has the right to sell the property, but if the owner finds a buyer independently, the broker is not paid a commission.	You appoint a broker to sell your property. If you end up finding a buyer yourself, you don’t owe the broker any commission.
The Exclusive Right-to-Sell Listing	Here, one broker is given the exclusive right to sell the property. Regardless of who finds the buyer, the broker receives a commission.	You hire a broker to sell your home. Even if you find a buyer on your own, the broker still gets paid.
The Multiple Listing	This is a type of exclusive listing where the property listed details are shared with all members of a multiple listing service (MLS). Any selling agent can sell the property and the commission is split between the listing and selling agents.	Your real property is listed with an MLS. Any member agent can sell your property and share the commission with the listing broker.
The Net Listing	In a net listing, the seller sets a minimum price for the property. Anything over that amount is kept by the broker as commission.	You want at least $200,000 for your home. The broker sells it for $220,000 and keeps the extra $20,000 as commission.
The Guaranteed Sale Agreement	This agreement allows a broker to buy a property at a predetermined price if it doesn’t sell within a certain timeframe.
A Buyer Agency Agreement	This agreement outlines the terms under which a broker will act on behalf of prospective buyers in a property transaction.

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Buyer Agency Agreements

Types

Exclusive Buyer Agency Agreement – The buyer works exclusively with one broker.
Exclusive Agency Buyer Agreement – The buyer works with one broker, but if they find a property independently, they don’t have to pay the broker.
Open Buyer Agency Agreement – The buyer can work with multiple brokers and only pays the broker who finds the property they purchase.

Information Included in Buyer Agency Agreements

The Term of the Agreement – How long the agreement is in effect.
General Characters of the property being sought by the buyer – Details about the type of property the buyer is looking for.
A list of the broker’s duties during the term of the agreement – What the broker is expected to do under the agreement.
Compensation and Method of Payment – How much and how the broker will be paid.

It really doesn’t matter if you’re a buyer, seller, or aspiring real estate agent, knowing and learning these terms can help you go through the real estate market better.

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How to Create a Listing

Creating a real estate listing is a crucial step for any real estate agent looking to sell a residential real estate property (or any other type for that matter). Here’s a basic checklist to help you through the process. If you have any specific questions, remember you can speak to your broker for guidance.

Step 1). Establish an Agency Relationship

As a real estate agent, your first step will be to establish an agency relationship with the seller. This relationship is typically established through a listing agreement, which outlines your responsibilities and duties to the client.

Step 2). Gather Information about the Property

Visit the property and gather all necessary information. This includes details about the property’s size, number of rooms, unique features, and any recent renovations or upgrades.

Step 3). I Set a Price

When I gather all the resources and information about a property, the next thing I do is set a price for the property. I look at similar properties in the area, think about the property’s condition, and check for any price changes in the real estate business. I compared three homes on my street that recently sold to decide on a fair price for my property.

Step 4). I Prepare the Listing

After setting the price, I prepare the listing. I add all the details I’ve collected, like the size of the home and special features, to make it attractive to potential buyers. I also include great photos from the best real estate camera I can find and videos so buyers can picture themselves living there. I know that a visual impression is powerful in the real estate market. I used a high-quality camera to take clear photos of the living room because I wanted buyers to see its bright, open space.

Step 5). I Post the Listing

Once the listing is ready, I post it on various platforms. For example, I use mls listings, the regional multiple listing service, and my company’s website. That way, realtors and buyers have many ways to learn about the property. I add my property to the MLS database to make sure real estate agents and buyers could see it right away.

How I Terminate a Listing

Sometimes, I or my client decide that terminating a listing is the best option. Here’s how I handle that.

Step 1). I Review the Listing Agreement

The first step is to carefully review our listing agreement. This document explains the steps and conditions for ending the contract. I always keep my client’s interests in mind as I go through it. I would check the listing agreement to confirm the time period we agreed on for ending the listing.

Step 2). I Communicate with the Seller

If I want to terminate a listing, I talk openly with the seller. I explain why I think it’s the best course of action and make sure they know I’m looking out for them. I would my client we could remove the property from the market to adjust the price before relisting it.

Step 3). I Prepare a Termination Agreement

When we agree to terminate the listing, I write up a termination agreement. This document states that neither party has any more obligations under the original contract. I create a termination agreement for my client to sign, confirming we’d end the listing.

Step 4). I Submit the Termination Agreement

I’ll submit the signed agreement to my broker or my real estate business for approval. Once approved, I give a final copy to the seller for their records. I would hand the signed termination agreement to my broker and emailed a copy to the client.

Step 5). I Remove the Listing

After everything is approved, I remove the property from the MLS listings, my company’s website, and other platforms. This step provides that no one thinks it’s still for sale. I would delete the property from the database after the termination agreement was finalized.

Ending a listing requires clear communication and attention to detail. I always check the listing agreement and work closely with my broker to be sure I’m following the right steps. As real estate agents and REALTORS®, it’s our duty to ensure the best outcome for our clients, whether their properties are sold or removed from the market.