Is Selling Your Home as a “Private Exclusive” in Your Best Interest?
Selling a home is one of the most significant financial decisions you’ll make, and every seller wants to ensure they’re making the best choices to maximize their return. If your real estate agent has suggested selling your home as a "private exclusive" through their brokerage, you might be wondering whether this strategy is truly in your best interest.
What Is a “Private Exclusive” Listing?
A "private exclusive" listing means that your home is marketed privately within a specific brokerage or a select group of potential buyers. Unlike traditional listings that appear on the Multiple Listing Service (MLS) and are accessible to a wide audience, a private exclusive keeps your property off the public market. Instead, only a limited number of buyers, typically those already working with the brokerage, are made aware that your home is for sale.
Potential Advantages of a Private Exclusive
1. Discretion and Privacy: If you prefer to keep your sale under wraps, perhaps due to personal reasons, or if you're a high-profile individual, a private exclusive can help maintain your privacy.
2. Reduced Market Days: Homes listed publicly on the MLS accumulate "days on market," which can sometimes lead to a stigma if they don’t sell quickly. A private exclusive allows you to test the market without the clock ticking on your public listing.
Drawbacks to Consider
1. Limited Exposure: The primary downside to a private exclusive listing is the limited exposure. By not being on the MLS, your home isn’t reaching the vast majority of potential buyers, which could reduce competition and, ultimately, the sale price.
2. Lack of Transparency: A private sale might not provide the same level of transparency that a public listing does. Without multiple offers or a public bidding process, you may not have a clear understanding of whether you’re getting the best possible price.
3. Market Data Limitations: Without the broad market data that comes from a public listing, it can be challenging to gauge if your home is priced correctly. Overpricing or underpricing could become a risk, affecting your bottom line.
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Bottom Line
All things considered, private exclusives are almost never in the best interests of the seller.
There is one rare exception: when privacy and discretion are paramount. Here is one recent example we have encountered. An elderly gentleman had to sell his home. Unfortunately, he had dementia and limited mobility, so he could not vacate the home for showings. Furthermore, large-traffic showings, like open houses, would have been too demanding for him. Avoiding maximum exposure in this case made sense, so a private exclusive was the solution.
However, such cases are exceedingly rare. Unscrupulous brokers will try to steer sellers towards private exclusives, for two reasons. First, it requires minimal effort on their part. And second, it allows them to pocket both buyer and seller broker commissions for the transaction.
Snapdoor markets all homes to the widest possible audience. This helps ensure that sellers get the highest possible price and the best terms from buyers. We enter your listing into the MLS, and it’s shown on Redfin, Zillow, and hundreds of broker websites. We also host open houses so that buyers who may not have agents can also check out the home.
Maximum exposure to your home also fosters competition among buyers, resulting in the best possible offer. It also ensures that you avoid potential fair housing violations. And finally it tests your pricing in an open and competitive marketplace.
Snapdoor represents sellers exclusively and avoids conflict-of-interest sales. Private exclusives add to the secrecy of sales, whereas Snapdoor’s process maximizes transparency, openness, and competition. All of this benefits home sellers.
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