Open Listing Versus Exclusive Listing: What’s the Difference?
NYC real estate terminology can be very confusing. Two terms which are unusually confusing to renters (and even newer brokers) are “open listing” and “exclusive listing”. As a renter or buyer, it’s completely possible that you never even heard these terms. However, understanding them can help you sort out the “big picture” and how things work in the NYC real estate market. It can also save you a lot time in your apartment search.
NOTE: To search for NYC apartments go to frele.com (free service). Or, click for more rental tips
Definitions of Open Listing & Exclusive Listing
An exclusive listing is when a landlord or seller chooses only one agent to list their property (or properties). All leads from an advertised exclusive listing go to the agent who signed the exclusive agreement. This agent’s fiduciary duty is to the landlord or seller.
An open listing is when a landlord or seller has given permission for more than one broker to advertise a property. They could have given just a few brokers this permission, or sometimes hundreds of other brokers. In an open listing arrangement, several agents can be representing a single landlord on one of his or her properties. The first broker who finds a qualified renter for that apartment will get the “deal”.
Why Should the Type of Listing (Open Listing or Exclusive Listing) Matter to you as a Renter
You should always ask the listing agent if they are advertising an open listing or exclusive listing. When a listing is an exclusive listing, the agent…
- Has direct “control” over the rental
- Knows about any existing offers on the rental
- Knows how negotiable the landlord or seller is
- Knows what kind of tenant the landlord is looking for, as well as the terms to strike a deal
- May only be able to show when he or she is available
The information regarding an exclusive listing is usually very accurate. The reason is because the exclusive agent is solely responsible for the marketing of the unit.
Meanwhile, an open listing means that the particular apartment may be advertised by many brokers all across the internet. These apartments can usually be shown at all hours of the day. Since there are many agents advertising the property, it’s possible that…
- The property is already rented or sold (without the knowledge of other agents)
- Agents advertising the property wouldn’t know about offers or applications made to other agents
- The agents advertising the property have little power over negotiations
- The agent has to confirm with the landlord or seller regarding the property’s availability if you expressed interest in the property.
Is There an Easy Way to Tell if an Apartment is an Exclusive Listing or an Open Listing?
Yes. Some rental websites like Frele and Leasebreak only allow apartments to be posted on their websites if the apartments are exclusive listings. Other rental websites – as we mention in this blog post about the top 6 rental websites – are known for having mostly “open listings” on their websites.
Learning the Difference Between An Exclusive Listing and an Open Listing Can Save You A Lot of Time.
As a renter it’s important to know the difference between an open listing and an exclusive listing. The distinction will help you understand the big picture. For example, it will help you understand why the agent may not know the answers to even some basic questions like if the property is still available (i.e. open listing) or why access is so limited (i.e exclusive listing).
For more NYC rental tips, please go to frele.com/learn.
This article was written by:
Phil Horigan, NYC Real Estate Veteran
Founder, Frēlē, the free and honest NYC rental marketplace
Producer, Phil’s NYC Rental Tips [YouTube Channel]
Blogger: flowfreely.com
Instagram: @philiphorigan
Phil has been a licensed NYC real estate agent since 2004 working for some of the top real estate brokerage firms in the industry. He founded Leasebreak.com in 2013, and Frēlē in 2017. Frēlē and Leasebreak are free and transparent rental marketplaces to search for or post apartments for rent in NYC
Go to frele.com to search for NYC apartments (free service).