Real Estate Listing Definition

What is a Listing in Real Estate?

Last Updated: November 10, 2025

In real estate, a “listing” is the official agreement and public-facing advertisement that puts a property on the market. It refers to a property for sale, lease, or rent, represented by a real estate agent or broker.

This entry, often in a database like the Multiple Listing Service (MLS), is what allows other agents and home buyers to find and consider the property. This agreement, or employment contract, authorizes the broker to act on behalf of the owner, manage the home sale for a specific period, and accept offers.

What is a Listing Agreement?

In the broadest sense, a listing is a formal agreement between a property owner (the seller) and a real estate broker. This contract authorizes the broker to act as the owner’s representative in the sale or lease of a property. It defines the terms of the relationship, including the broker’s responsibilities, the duration of the agreement, and the compensation (commission) the broker will receive upon successfully selling the property.

Types of Listings Agreements with Real Estate Agents

There are several types of real estate listings agreements, each with its own specific terms and conditions. Here are the most common types and their meanings.

Related Agreements: Buyer Agency

While a listing agreement is for sellers, a buyer agency agreement is the contract used between a buyer and a broker. It outlines the terms under which a broker will act on behalf of prospective buyers in a property transaction.

Types of Buyer Agency Agreements

• Exclusive Buyer Agency Agreement: The buyer works exclusively with one broker for a specified time.
• Exclusive Agency Buyer Agreement: The buyer works with one broker, but if they find a property independently, they don’t have to pay the broker.
• Open Buyer Agency Agreement: The buyer can work with multiple brokers and only pays the broker who finds the property they ultimately purchase.

Information Included in Buyer Agency Agreements

• The Term of the Agreement: How long the agreement is in effect.
• General Characteristics of the Property: Details about the type of property the buyer is looking for.
• A List of the Broker’s Duties: What the broker is expected to do under the agreement.
• Compensation and Method of Payment: How much and how the broker will be paid.

It really doesn’t matter if you’re a buyer, seller, or aspiring real estate agent, knowing and learning these terms can help you navigate the real estate market better.

How to Create a Listing

Creating a real estate listing is a crucial step for any agent. Here’s a basic checklist for the process. Remember to always consult your managing broker for guidance.

1. Step 1). Establish an Agency Relationship

   An agent’s first step is to establish an agency relationship with the seller. This is formalized through a listing agreement, which outlines all responsibilities and duties to the client.

2. Step 2). Gather Property Information

   Visit the property to gather all necessary information. This includes details about the property’s size, age, number of rooms, unique features, and any recent renovations or upgrades.

3. Step 3). Set a Price

   After gathering property information, the next step is to perform a Comparative Market Analysis (CMA) to set a competitive price. This involves analyzing similar properties in the area (comps), considering the property’s condition, and checking market trends. Comparing three recently sold homes on the same street, for example, helps determine a fair market price.

4. Step 4). Prepare the Listing for Market

   With the price set, the agent prepares the listing. This involves adding all collected details to make it attractive to potential buyers. This includes professional photos (perhaps from the best real estate camera) and videos, as a powerful visual impression is critical. A high-quality photo of the living room can showcase its bright, open space.

5. Step 5). Post the Listing

   Once the listing is ready, it is posted on various platforms. This typically includes the regional Multiple Listing Service (MLS) and the brokerage’s company website, ensuring maximum exposure to other realtors and buyers.

How to Terminate a Listing

Sometimes, a client or agent decides that terminating a listing is the best option. Here’s the professional way to handle that process.

1. Step 1). Review the Listing Agreement

   The first step is to carefully review the original listing agreement. This document explains the specific steps, conditions, and any potential costs or protection periods for ending the contract.

2. Step 2). Communicate with the Seller

   Open communication is key. The agent should discuss with the seller *why* termination is being considered and explain the best course of action, always keeping the client’s best interests in mind. This could involve removing the property from the market to adjust the price before relisting.

3. Step 3). Prepare a Termination Agreement

   Once both parties agree to terminate, a formal termination agreement is drafted. This document officially states that neither party has any further obligations under the original contract, subject to any protection clauses.

4. Step 4). Submit the Termination Agreement

   The signed agreement must be submitted to the agent’s managing broker for approval and record-keeping. Once approved, a final copy is provided to the seller.

5. Step 5). Remove the Listing

   After everything is approved, the agent must remove the property from the MLS, the company website, and all other platforms. This step ensures no one thinks the property is still for sale, maintaining data accuracy.

As REALTORS®, it’s our duty to ensure the best outcome for our clients, whether their properties are sold or removed from the market.

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