What is multi-listing?

Multi-listing explained

Multi-listing, or a multiple-listing agreement, is an option open to sellers instead of the usual exclusive contract with a single agency.

Under an exclusive agreement, one agency handles the entirety of the sales process from start to finish – from marketing and open houses to auctions and/or negotiations with potential buyers.

A multiple-listing agreement sees you sign up with a single agent – but rather than the property being sold by just that agent, the listing is shared with other agents who are members of a multiple-listing network. Those agents can then market it to their databases, with the agent you sign with and the agent who sells the property sharing the commission.

The pitfalls of multi-listing

The advantages are that your property is marketed to more potential buyers and you get more than one real estate agent working for you. Sounds good in theory, doesn’t it?

Sadly, it’s not as simple as that. Agents may be less motivated to sell multi-listed properties as they have to share the commission from the sale – and are therefore more likely to focus on properties under exclusive contract where they take a full slice. Multi-listing may also result in the property being sold for a lower price, warns says Ian Smith of accountancy firm The Practice.

“Some people think the more agents that have the listing the more likely it is to sell,” he says. “Buyers will go to the other agents to see who is quoting the lowest price and the buyer will then make their offer via that agent. It’s a great way to lower your selling price.”

So why multi-list?

The main benefit when multi-listing was first introduced – which was more than 100 years ago in the US – was that you could reach a pool of buyers outside your geographical region. With the advent of property search engines like Domain, that’s not an issue anymore.

After all, any agent worth their salt should be listing your property online. In today’s more tech-savvy marketplace, you’re better off finding a quality real estate agent and ensuring your online listing showcases your property well – with high-quality photography and engaging ad copy to draw in the highest number of potential buyers.

While there are advantages to multi-listing, the potential downsides could outweigh the benefits. If you’re keen for your property listing to reach thousands, you’re better off insisting to your real estate agent that it’s listed on Domain.