Effects of Private Listings on Market

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May 6th, 2020 10:28 am

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May 2nd, 2020 9:29 am

widzo1 [OP]: Newbie; May 1, 2020; 3 posts

May 2nd, 2020 9:29 am

Effects of Private Listings on Market

This seems par for the course, now. I spoke to a Real Estate agent in our church, and one thing he said about (Toronto) is that lots of agents are not listing on MLS but are taking “exclusive,” listings. They do this because once a house is on MLS, people start noticing how long it is taking to sell, and that creates downward price pressure. On the other hand, exclusive listings don’t have a ticking clock, and how long they’ve been on the market can be disguised a bit. She said that your agent will usually have access to other agent’s exclusive listings, but you have to look. Does this take resonate with others on this forum? What are the effects of private listings on the market? Will they succeed in propping up prices? The very fact that agents are already moving in this direction is a startling signal, or am I mistaken?

Have long been a lurker, and enjoyed the boisterous contributions from all angles

11 replies

May 2nd, 2020 9:08 pm

issuetree: Newbie; Mar 23, 2020; 8 posts; 3 upvotes

May 2nd, 2020 9:08 pm

At a macro level, exclusive listings most likely cloud the reality of slower sales. However If I were a seller and allow my agent to take the exclusive listing route - it would be quite idiotic as that would reduce the reach of my listing.

So it’s surprising that things like this are happening.

+2

May 2nd, 2020 10:12 pm

senasena: Deal Addict; Feb 19, 2019; 2187 posts; 3706 upvotes; Stouffville ON

May 2nd, 2020 10:12 pm

issuetree wrote: ↑ At a macro level, exclusive listings most likely cloud the reality of slower sales. However If I were a seller and allow my agent to take the exclusive listing route - it would be quite idiotic as that would reduce the reach of my listing.

So it’s surprising that things like this are happening.

I agree, exclusive listings are great for the buyers if they can find it.

Full Time and Full Service Realtor

May 3rd, 2020 12:09 am

dantey: Deal Addict; Jul 14, 2002; 2742 posts; 1387 upvotes

May 3rd, 2020 12:09 am

widzo1 wrote: ↑ This seems par for the course, now. I spoke to a Real Estate agent in our church, and one thing he said about (Toronto) is that lots of agents are not listing on MLS but are taking “exclusive,” listings. They do this because once a house is on MLS, people start noticing how long it is taking to sell, and that creates downward price pressure. On the other hand, exclusive listings don’t have a ticking clock, and how long they’ve been on the market can be disguised a bit. She said that your agent will usually have access to other agent’s exclusive listings, but you have to look. Does this take resonate with others on this forum? What are the effects of private listings on the market? Will they succeed in propping up prices? The very fact that agents are already moving in this direction is a startling signal, or am I mistaken?

Have long been a lurker, and enjoyed the boisterous contributions from all angles .

I saw an exclusive listing when I went for a walk around my neighbourhood. Wouldn't have known otherwise if it was there since I don't usually drive through that area.
Was curious about the price but in the end didn't bother taking down the information. Not sure if it's a great idea, as multiple bids/interest are usually what drives the highest price.
During this COVID period, staging and virtual tours are a must. At least these are the homes that stick in my mind.

May 3rd, 2020 2:11 am

Angel Girl: Deal Addict; May 10, 2008; 2022 posts; 2190 upvotes; Vancouver, BC

May 3rd, 2020 2:11 am

Not sure about exclusive listings for residential properties, but I've been approached before by commercial realtors from well-known commercial brokerage firms and they do not cooperate with other realtors nor list the property on the database that most realtors use. No offence to anyone here who is a commercial realtor for one of those companies, but I really cannot think of how a small-time owner like me can benefit from the reduced listing exposure and zero commission for the buyer's agent.

widzo1 wrote: ↑ They do this because once a house is on MLS, people start noticing how long it is taking to sell, and that creates downward price pressure. On the other hand, exclusive listings don’t have a ticking clock, and how long they’ve been on the market can be disguised a bit.

Hmm, this to me is a red flag that this realtor isn't confident he/she can sell it in a timely manner and is expecting it to sit for awhile.

widzo1 wrote: ↑ She said that your agent will usually have access to other agent’s exclusive listings, but you have to look.

So that means people who are casually looking without an agent will not be able to access the info. That cuts out a lot of potential buyers.

May 3rd, 2020 5:39 am

cloak: Deal Addict; Sep 2, 2009; 2893 posts; 2912 upvotes; Ottawa

May 3rd, 2020 5:39 am

Like most things things in life: it depends why.

Can be a game to pad stats but it can also be to give the sellers time to het the property ready for actual showings.

Exclusive or 'coming soon' can be just to give the seller time to make some last minute renos, move out before letting people in to see the property or get staging done, delaying listing knowing it will get listed once it is ready (maybe someone just wants a place in the area and may pick up the property without the hassle of all the extra work), ready to move but isn't in a rush (I'll move if I sell but don't want the hassle of showings unless the buyer is serious - avoid tire kickers), etc...

A property that isn't commercial, millions of dollars, or sits as exclusive as a 'typical' residential property/transaction: not sure the real benefit as it would lower the buyer pool and subsequent price.a

May 4th, 2020 11:23 am

Isostar: Deal Addict; Jul 8, 2010; 1456 posts; 1175 upvotes; Ontario

May 4th, 2020 11:23 am

widzo1 wrote: ↑ This seems par for the course, now. I spoke to a Real Estate agent in our church, and one thing he said about (Toronto) is that lots of agents are not listing on MLS but are taking “exclusive,” listings.

For someone with info in the process, how is is reported? If a house is sold as "exclusive" and not on MLS at all, it is included in TREB reporting on sold #? Or TREB is using on MLS records?

May 4th, 2020 12:17 pm

lpin14: Deal Addict; Nov 24, 2013; 2494 posts; 1845 upvotes; GTA

May 4th, 2020 12:17 pm

Don't really see the point of an exclusive listing as it will likely drive prices down.

May 4th, 2020 12:35 pm

licenced: Deal Fanatic; Jul 3, 2011; 6517 posts; 3798 upvotes; Thornhill

May 4th, 2020 12:35 pm

Lots of reasons to list exclusively, some valid some not so valid. It's not uncommon for really expensive or specialty properties to be listed first p rivacy is one major reason, another is that the advertising that's going to bring in the buyer is likely to be from specific targeted advertising globally and not through the MLS.

The ticking clock is not a valid reason to list it exclusively, it's only valid if for the reason it was listed exclusively didn't work out.

To be reported on the board stats it has to be listed on the board's MLS System.

Isostar wrote: ↑ For someone with info in the process, how is is reported? If a house is sold as "exclusive" and not on MLS at all, it is included in TREB reporting on sold #? Or TREB is using on MLS records?

+1

May 4th, 2020 1:30 pm

Isostar: Deal Addict; Jul 8, 2010; 1456 posts; 1175 upvotes; Ontario

May 4th, 2020 1:30 pm

licenced wrote: ↑ To be reported on the board stats it has to be listed on the board's MLS System.

Sorry, few more questions. It is ok if you don't have answers.

This means the TREB report covers everything that goes on MLS, but not everything that goes through a brokerage? On top of that will be really private transactions.
Where will all these transactions be recorded? It is the Terranet report?

May 4th, 2020 3:23 pm

licenced: Deal Fanatic; Jul 3, 2011; 6517 posts; 3798 upvotes; Thornhill

May 4th, 2020 3:23 pm

Isostar wrote: ↑ Sorry, few more questions. It is ok if you don't have answers.

This means the TREB report covers everything that goes on MLS, but not everything that goes through a brokerage? On top of that will be really private transactions.
Where will all these transactions be recorded? It is the Terranet report?

No problem ask away,

That's correct. TRREB's market watch only reports on what is listed via TRREB's listing system therefore it does not and cannot know what exclusive listings were placed or sold by a brokerage.

You know often you'll see some realtors say they have stats on other realtors? In actuality those stats unless they're provided directly by the brokerage are not ever correct and exclusive sales is just one reason why.

All of the sales transactions will be reported by Teranet yes because it is the land registry system. However, Teranet can only report based on the date/month the property was transferred to the buyer which can be months down the road from the original sale date making it a lagging indicator of actual sales closed - new build plus resale, but not a very a reliable indicator of prices because of the postponed closing dates.

+3

May 6th, 2020 10:28 am

at1212b: Deal Guru; Mar 31, 2008; 12941 posts; 3028 upvotes; Toronto

May 6th, 2020 10:28 am

dantey wrote: ↑ I saw an exclusive listing when I went for a walk around my neighbourhood. Wouldn't have known otherwise if it was there since I don't usually drive through that area.
Was curious about the price but in the end didn't bother taking down the information. Not sure if it's a great idea, as multiple bids/interest are usually what drives the highest price.
During this COVID period, staging and virtual tours are a must. At least these are the homes that stick in my mind.

Often, the exclusive listing I've seen are overpriced, and have rarely sold.

+1

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