Pitfalls of Private Listings

Think Twice Before Agreeing to an “Exclusive” or “Private” Listing

A new trend is emerging in the market, with some large brokerages promoting their “private” or “exclusive” listings, which are only accessible to their agents through the company’s internal network. Despite any claims these brokerages may make, there is typically one primary goal for this type of listing: double-ending the transaction.

Double-ending is industry jargon for representing both the buyer and the seller in a transaction, which allows the agent to collect a double commission. While this practice may benefit the brokerage, it can come at a significant cost to sellers.

A recent analysis by Zillow found that homeowners who sold their properties through private listings lost an average of nearly $5,000 compared to those who listed on the open market. This figure is based on the average home price nationwide. In higher-priced areas like ours, the losses can reach $30,000 or more, according to the same analysis.

You can read the full article here.

While our parent company’s intranet allows us to market listings directly to thousands of local agents under our umbrella, we do not recommend privately listing a home in this manner. Private listings simply cannot provide the same level of market exposure as the Multiple Listing Service (MLS), which reaches a far broader pool of potential buyers.

If you are considering selling your home, it is crucial to understand the type of listing you are agreeing to and the potential impact on your final sale price.

Feel free to reach out if you have any questions or would like additional information.