What is an option listing?

An option listing is characterized by granting a broker the right to purchase a property at a predetermined price within a specific time frame. This arrangement allows the broker to secure the property for their own purchase, which can be a strategic move in real estate investment. By obtaining this option, the broker can assess the property’s value and market conditions before deciding to follow through with the purchase. This is a distinct feature that sets it apart from other types of listings, where the primary focus is on the sale or lease of the property rather than the broker's right to acquire it directly.

Other options provided do not accurately represent the essence of an option listing. A listing that allows an agent to sell property exclusively pertains to exclusive listings, while a lease agreement typically involves renting terms rather than options to purchase. Additionally, a listing with no commissions doesn't align with the standard practices of real estate transactions and does not define an option listing.