When selling a home, one of the most important decisions you’ll make is choosing the right listing agreement with your real estate agent. The exclusive right to sell is the most common and widely used agreement, and for good reason. In this Redfin Real Estate article, we’ll explain what an exclusive right to sell agreement is, how it works, and the key advantages it offers to homeowners looking for a smooth, successful sale.
What is an exclusive right to sell?
An exclusive right to sell is a real estate listing agreement where a seller gives one real estate agent (or broker) the exclusive authority to market and sell their property. Under this agreement, the agent earns the commission regardless of who brings in the buyer, even if the seller finds a buyer independently.
This type of agreement is the most common and preferred listing contract in real estate because it provides clear expectations and motivates the agent to fully market the property.
How an exclusive right to sell agreement works
When you sign an exclusive right-to-sell listing contract, you grant your agent sole representation for a set period (often 3–6 months). During this time:
- The agent will list your home on the MLS (Multiple Listing Service).
- They handle professional marketing, showings, and negotiations.
- If the property sells, the agent receives a pre-agreed commission (typically 5–6% of the sale price).
Key point: Even if you find the buyer yourself, you’ll still owe the agent their commission.
Benefits of an exclusive right to sell
- Agents are more motivated to invest in high-quality marketing since they’re guaranteed a commission if the property sells.
- Your agent handles all negotiations and paperwork, ensuring a smoother transaction.
- Being listed on the MLS significantly increases buyer exposure.
- You get a single point of contact who prioritizes your sale.
Exclusive right to sell vs. exclusive agency
While both agreements give one agent exclusive marketing rights, there’s a big difference:
- Exclusive Right to Sell – The agent earns a commission regardless of who finds the buyer.
- Exclusive Agency – The agent only earns commission if they (or another broker) bring the buyer. If you find a buyer yourself, you don’t owe a commission.
Is this agreement right for you?
If you want maximum exposure and professional support, the exclusive right to sell contract is often the best choice. It ensures that your agent is fully invested in securing the highest price for you in the shortest time possible.
However, if you’re confident you can find a buyer yourself, you may consider an exclusive agency or FSBO (For Sale By Owner), though these options often result in slower sales and lower offers.
Frequently asked questions about exclusive right to sell
1. What is an exclusive right to sell agreement?
It is a listing contract where a real estate agent has the sole right to market and sell your property. No matter who finds the buyer, the agent receives a commission if the home sells during the contract term.
2. Do I have to pay a commission if I find the buyer myself?
Yes. With this type of agreement, you are obligated to pay the agent’s commission even if you personally find the buyer without their help.
3. How long does an exclusive right to sell contract last?
These contracts typically last between 90 and 180 days, but the term can be negotiated. You and your agent will agree on the specific timeframe when signing the agreement.
4. Can I cancel an exclusive right to sell agreement?
Yes, but it depends on the terms of your contract. Some agreements allow cancellation with written notice, while others may involve a cancellation fee or require mutual consent. Always review your listing agreement carefully.
5. What’s the difference between exclusive right to sell and exclusive agency?
In an exclusive agency agreement, you can find your own buyer and avoid paying commission. In an exclusive right to sell, the agent earns commission no matter who brings the buyer.
6. Why do most agents prefer exclusive right-to-sell agreements?
Agents prefer this agreement because it ensures they’ll be compensated for their time and marketing efforts. It motivates them to market your property more aggressively.
7. Is this better than an open listing?
Yes, for most sellers. Open listings offer less agent commitment and typically result in lower exposure. Exclusive right to sell listings are prioritized and promoted more extensively.
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