What Is a Listing Agreement in Real Estate?
A listing agreement is a contract between a property owner and a licensed broker that authorizes the broker to place the home on the MLS, market it, and set terms for compensation. With Brokerless, you sign a limited-service / flat fee MLS listing agreement—so you keep control and avoid a 6% listing commission.
✅ What a Listing Agreement Covers
- Authority to list: permission to publish on the MLS and portals.
- Term: start/end dates and any renewal options.
- Price & showing terms: list price, inclusions/exclusions, showing instructions.
- Compensation: what you offer a buyer’s agent in MLS (you control this).
- Services: limited-service scope for flat fee listings vs. full-service brokerage.
- Disclosures & docs: photos, property facts, and required forms aligned with your purchase agreement.
- Cancellation / hold: how to pause or cancel the listing if needed.
After you’re live, the transaction moves toward escrow once an offer is accepted.
Common Types of Listing Agreements
- Exclusive Right to Sell: broker is paid if the property sells during the term (most common on MLS).
- Exclusive Agency: broker is paid unless the owner procures the buyer directly.
- Open Listing: non-exclusive; generally not accepted by most MLSs.
- Limited-Service / Flat Fee MLS: you pay a one-time fee for MLS exposure; add services as needed. See Limited Service MLS.
💡 Why the Listing Agreement Matters
- MLS access: enables syndication to Realtor.com, Zillow, and IDX sites via your MLS listing.
- Clarity: locks in responsibilities, timelines, and how offers are handled.
- Saves fees: flat fee MLS avoids a listing-side percentage while still attracting buyer agents.
New to flat fee? See how it works and choose a plan on pricing.
📍 Listing Agreements for FSBO (Flat Fee MLS)
- You’re the point of contact: inquiries route to you (see how buyers contact sellers).
- Buyer-agent offer: you set the advertised co-op in MLS; it appears on the MLS for agents.
- As-Is option: you can market the home as-is while still allowing inspections.
- Costs: flat fee upfront; typical closing items appear on the settlement statement and vary by who pays closing costs.
🧩 Quick Myths About Listing Agreements
- “Listing = 6% commission.” ❌ Flat fee MLS lets you avoid a listing-side percentage.
- “Open listings go on MLS.” ❌ Most MLSs require exclusive right-to-sell or exclusive agency.
- “You can’t cancel.” ❌ Agreements spell out how to pause/cancel—read your terms.