An exclusive listing is a the placement of a property into an agreement where only the real estate agents from a single office agency are permitted to show your house to buyers. There are various reasons why this is advantageous in some cases, but there are also significant disadvantages.
When you are placing your property for sale, your real estate agent may enquire whether you want to place it on the overall broad MLS system or would prefer an exclusive listing. If the real estate agent works for a fairly small office, then the number of agents who will be available to show your home may well be too small. Also keep in mind that most exclusive listings are held at the local office level, so even though that particular office may be part of a much larger and even nationwide agency, only the agents from that specific office will have rights to show your property.
There are a number of other negative aspects to placing your property under an exclusive listing arrangement:
- Fewer buyers will actually get to see the property.
- Fewer real estate agents will even be aware that it is available.
- It will be invisible on MLS searches thus get much more restricted exposure.
- The listing is not covered by the standards and ethical guarantees of your local MLS.
There are, however, some advantages to placing your residential property in an exclusive listing. It is much easier to control the entire showing scheduling and set of circumstances with an exclusive listing, as there is only a limited number of individuals responsible for visiting, which can be a boon if:
- You have valuable collectables or artwork that could be subject to theft.
- You have a new infant in the home.
- You have someone in the home who is ill.
- You prefer to have only pre-qualified buyers visit the home.
- You want your property to receive special attention from the real estate agents.
A significant consideration in placing your property under an exclusive listing agreement is that specific types of properties, generally the higher end ones, can benefit from being placed only with an office or agency which specializes in that sort of sale. Many areas have real estate agents who only deal in waterfront or recreational property, luxury homes or condos. These agents have a far greater amount of specialized knowledge about the dynamics of that particular segment of the real estate market, as well as have existing lists of potential buyers who have expressed a desire to purchase properties just like yours: All of which can add up to a quicker sale for more money. Some high end real estate agencies will also take on the expense of advertising in rarefied luxury magazines and other media which reaches higher income individuals, rather than in generic media like the local weekend newspaper.
There is a significant cachet to an exclusive listing and although it is not a process which should be considered by all sellers of residential property, if your home is special enough, opulent enough, or has unique features which are likely to appeal primarily to a connoisseur, then you might want to consider bypassing the mass MLS system and placing your listing exclusively with one real estate agency which has an acknowledged reputation for having the capability, skills, and savvy to sell your type of property.