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Exclusive Agency Vs Exclusive Right To Sell Calculator

Different listing agreements allocate seller-procured buyer commission differently.

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%
%

Exclusive Right expected

$600,000

Exclusive Agency expected

$420,000

Seller savings w/ Exclusive Agency

$180,000

How the math works

ER = full commission. EA = commission × (1 − seller-procured %). Savings = ER − EA.

$15M × 4% = $600k. 30% seller-procured: EA = $420k. Savings $180k — but broker pushes back for carveouts.

How to Use

  1. Enter sale price.
  2. Enter standard commission %.
  3. Enter probability of seller-procured buyer %.
  4. Read expected commission under each model.

Frequently Asked Questions

What's the difference?

Exclusive Right to Sell: broker earns commission on any sale regardless of who procures the buyer (including seller's own network). Exclusive Agency: broker earns commission ONLY if broker procures the buyer; seller can sell directly to their own contact without paying commission. Exclusive Right is standard in residential and commercial. Exclusive Agency more common in luxury, off-market sales, and specialized commercial with seller-originated relationships.

Why would a seller choose Exclusive Agency?

Seller has existing relationships with likely buyers (institutional seller to family office, owner to competitor, landlord to current tenant). Not a sign of disrespect to broker — common in commercial and industrial. Typically negotiated with existing buyer identified in LOI or 'exclusion list' attached to listing agreement. Carve-outs give seller flexibility without losing broker's promotion to broader market.

Commission differences?

Exclusive Right: full commission (3-6% residential, 2-4% commercial). Exclusive Agency: full commission if broker procures; zero if seller procures. Effective rate depends on probability of broker vs seller procurement. If seller has 30% chance of procuring and 70% broker, Exclusive Agency expected commission is 70% × 5% = 3.5%. Less commission paid on average. Broker pushes back on Exclusive Agency for this reason.

Hybrid structures?

Many listings use Exclusive Right to Sell with specific exclusion (named buyers). Gives broker full commission on broad market + seller retains control over existing relationships. Institutional sellers universally use this structure. Discuss carve-outs at listing signing; once market is launched, changes are contentious. Typical exclusion: 5-15 named parties on an exclusion list embedded in listing agreement.

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