Selling a home involves navigating complex legal and professional relationships regarding representation. Many sellers wonder if they can maximize exposure by hiring more than one real estate professional simultaneously. The answer depends entirely on the specific contractual agreement established between the homeowner and the brokerage firm. Understanding this employment contract determines how the property can be marketed and by whom.
Understanding Listing Agreements
The relationship between a seller and a real estate professional is formalized through the listing agreement. This legally binding employment contract is established with the brokerage firm the agent represents, making the broker the principal party in the transaction. The agreement defines the scope of the broker’s authority to market the property and act on the seller’s behalf, including the right to utilize signage and advertise the listing.
It specifies the total commission structure, detailing the percentage owed and the conditions under which payment is earned, which often involves a split between the listing broker and the buyer’s broker. The listing agreement also defines the duration of the professional relationship, outlining the start and end dates of the broker’s mandate. The specific terms of this agreement dictate whether a second agent can be involved in the sale.
The Standard: Exclusive Right-to-Sell
The vast majority of homes sold in the United States utilize the Exclusive Right-to-Sell listing agreement, which is the industry standard for property representation. This contractual arrangement grants the designated broker the singular right to earn the agreed-upon commission, regardless of the source of the buyer. The commission is owed to the broker if the property is sold by anyone during the term of the agreement, including the listing agent, a cooperative agent, or the seller themselves.
This exclusivity prohibits a seller from engaging a second, independent realtor concurrently, as the primary broker maintains the guaranteed right to compensation. This guarantee incentivizes the broker to invest significant resources, time, and marketing capital into the property. This exclusive nature also allows the home to be entered into the Multiple Listing Service (MLS).
The MLS is the interconnected, regional database that shares property information among cooperating brokers, ensuring the home receives maximum exposure to potential buyers and their agents. Without the certainty of payment, brokers would be hesitant to share the listing with the larger real estate community. This standard agreement ensures only one brokerage firm is actively working to secure a sale, eliminating conflicts over who procured the buyer.
Listing Types That Allow Multiple Agents
While the Exclusive Right-to-Sell agreement is the industry standard, two other listing types allow for a seller to have multiple agents involved, though they are far less common.
Open Listing
The Open Listing permits the seller to contract with an unlimited number of different brokerage firms simultaneously. The seller retains the right to sell the property independently without owing any commission to any contracted brokers. Commission is paid only to the specific broker who successfully secures an acceptable offer from a ready, willing, and able buyer. This scenario is a high-risk proposition for the agents involved.
Exclusive Agency Listing
The Exclusive Agency Listing involves hiring only a single, designated brokerage firm to market the property, meaning no other brokers can be brought in by the seller. Unlike the standard exclusive contract, this agreement reserves the right for the seller to find a buyer on their own without owing the contracted broker a commission. If the seller successfully procures the buyer, the broker is not compensated.
Both the Open and Exclusive Agency types differ significantly from the Exclusive Right-to-Sell because they introduce conditions under which the contracted broker may not be paid. This fundamentally alters the agent’s professional motivation and commitment level.
Practical Drawbacks of Using Multiple Agents
Choosing an Open Listing or an Exclusive Agency agreement often introduces practical drawbacks that can hinder the sale process. The primary issue is a lack of professional motivation among agents. Agents are less likely to invest their own money and time into high-cost marketing efforts, such as professional photography or targeted online advertising, if they are not guaranteed a commission upon sale. This lack of investment translates directly to reduced market exposure and a slower overall sale period.
Reputable agents and brokerage firms dedicate fewer resources to non-exclusive arrangements that pose a greater risk of unpaid effort. Furthermore, managing an Open Listing can lead to complex commission disputes between brokerage firms. These conflicts arise when two or more agents claim to be the procuring cause—the one responsible for introducing the buyer who ultimately closes the deal—which can result in litigation and delays.
This environment of multiple agents can also confuse potential buyers who might see the same property listed by different parties, potentially at different prices or with inconsistent marketing materials. This disjointed presentation can undermine the perceived value and professionalism of the home’s sale process.
When You Can Switch Agents
When a seller is dissatisfied with their current representation, the solution is to switch agents rather than hire a second one concurrently. This process is governed by the termination clause within the existing listing agreement. The most straightforward approach is to mutually agree to terminate the contract, which formally releases both parties from their respective obligations without penalty.
Sellers must be aware of the protection period, often called a carryover clause, which remains in effect after termination. This provision dictates that if a buyer originally introduced by the first agent purchases the home within a specified post-termination timeframe, the original broker may still be owed their full commission.