In an exclusive listing, how is the commission determined?

In an exclusive listing, the commission is awarded to the listing broker when the property is sold. This arrangement signifies that the broker is entitled to a commission if they successfully find a buyer for the property, regardless of who ultimately brings the buyer to the transaction. The commission structure is typically outlined in the exclusive listing agreement, which specifies the terms and conditions under which the broker will be compensated.

Determining the commission in this way provides a strong incentive for the broker to market the property effectively and negotiate a sale, ensuring that both the seller and the broker have a clear understanding of the expectations from the beginning. This is a fundamental aspect of how exclusive listings work, as it establishes the broker's role and their right to compensation once the property transaction is completed. Other factors, such as local market rates or negotiations, may influence the specific commission percentage but do not define how it is awarded in the context of an exclusive listing.