The Hidden Costs of “Private Exclusives”

A home seller may be tempted by the perceived ease and convenience of selling their home without full exposure to the market – after all, there is a shortage of homes on the market and there are buyers who are always looking. These listings are often referred to as “private exclusives.”

Sellers need to make an informed decision, and this is the reality from a recent economic study from BrightMLS:

• Homes sold off-market sell for a median price that is 17% less than those with full market exposure on the Multiple Listing Service (MLS)
• Almost two-thirds of homes that attempt an off-market sale eventually end up in the MLS, taking an average of three weeks longer to sell.

Why would that be the case?

• No individual agent or real estate brokerage has all the buyers or even the majority of the buyers.
• Remember at the heart of “private exclusives” is “exclude.” And every buyer who isn’t aware of an off-market property is excluded from the opportunity to buy it. That hurts buyers and sellers.
• Does it really make sense to intentionally curb the demand side of the supply and demand equation, restricting the pool of possible buyers?

We believe it is in the best interests of our clients to provide all qualified buyers equal access to all homes on the market, not only to protect fair housing opportunities but to ensure that they maximize the value of their property.

Click here to read the full report from BrightMLS.