An exclusive listing is a formal agreement between the seller and the real estate broker or agent that gives the latter the sole right to sell the property within a short period of time and at the highest selling price possible.
Within the agreed period, the seller isn’t allowed to list the property with any other agent. And, regardless of how a buyer is found–whether through an agent or an ad, a seller must pay the agent the commission due them. The only exception is when a seller establishes an exclusive agency listing or the right to procure a buyer and sell the property without having to pay a commission to the agent if that same buyer closes the deal.
How exclusive listing is beneficial
Although an exclusive listing makes the property less visible to other real estate brokers, the seller will have more control over the number and type of people who can see and bid on a property. This provides a higher level of privacy during the selling period unlike a home listed on the Multiple Listing Service (MLS).
An exclusive listing is also beneficial to the seller in terms of building a good business relationship with the agent. Also, because there is only one agent, collaboration is much easier than in an open listing. It will be easier for the seller to assess if the agent is putting much effort into selling the property at a good price as well.
Exclusive listing difference from Open listings
Open listing sells a property to numerous real estate agents and brokers instead of with a single broker or entity. The commission is also given only to the one that brought the buyer to the seller and facilitated to close the deal.