Exclusive is a term often thrown around the real estate industry, but, what does it actually mean to a buyer, seller, and a REALTOR® ?
What Is An Exclusive Listing
There are many different options for selling your home in Ontario. Some of the most popular include:
- Listing on MLS®
- Auctioning it privately or through an Auction House such as Kijiji
An Exclusive listing:
- Is listed with a Real Estate Brokerage,
- is a contract between a home seller and a Real Estate Brokerage
- gives that brokerage the right to list and market the home exclusively. This means that only the real estate agents working with that brokerage will be able to bring in home buyers and home sellers. Is not advertised on the MLS®.
- no other brokerages or their agents will be involved, unless specifically allowed.
Exclusive Listings As A Home Seller
When you’re selling a home, it’s important to make sure that you put your best foot forward. That’s why exclusivity is so important in the real estate market. By listing your home as an exclusive, you’re ensuring that you’ll have the attention of more qualified buyers. And with today’s competitive market, that can be the key to success. It might just be the difference between a quick sale and a long wait! As the seller, when you sign an exclusive listing agreement, you are entitled to the same representation that you would if you had listed on the MLS®. The seller has representation, but buyer’s don’t always have representation. You also have the option to look into hiring team members if you want separate representation for selling and buying.
The benefits of selling exclusively include:
- Saving on commission and taxes
- You have more privacy because your house is not on display for everyone to see
- Dealing with less traffic into your house and attract more qualified buyers
- You can continue to prepare your home while your agent looks for a buyer
- Your listing marketing campaign can be thoughtfully planned and crafted
The risks of selling exclusively include:
- Not truly knowing if you received the best offer since your listing wasn’t marketed to a wider market
- You may end up negotiating to pay all the commissions as you would if you listed on the MLS®
Exclusive Listings As A Home Buyer
Are you in the market for a new home? If so, you’ll want to make sure you have access to the best listings available. That’s where our exclusive listings come in. As a buyer, you can work with the listing agent but you are always encouraged to ask for separate representation. You could hire any agent you wish, but you may have to pay them separately from the sale.
The benefits of buying an exclusive listing are:
- Less competition for the property so you’re less likely to enter a bidding war
- There’s more time to make a decision because there is less competition
- You get to deal with the sellers more directly so you can build a better connection with the sellers to increases your chances of them accepting your offer
- Save commissions by negotiating your agent’s commissions separately
The risks of buying exclusively include:
- You might pay more than the market value since you don’t have the ability to know if the market was not interested in the property
- You may end up paying your agent’s commissions plus HST *This commission can’t be added to the mortgage after negotiating.
More Information About Exclusive Listings
Let’s talk about your real estate needs. I’m more than happy to help you answer all your questions related to exclusive listings. Have other real estate questions not specifically related to exclusive listings? Don’t worry, you’ve come to the right place. Simply send me an email, text or give me a call and I’ll get back to you ASAP!