Real Estate

Exclusive Listings

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  • May 5th, 2021 8:45 pm
[OP]
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Dec 4, 2009
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Exclusive Listings

Anyone know what the benefit of an exclusive listing would be to a seller?

I've seen a couple of exclusive listings sit for sale for a long time in my neighbourhood. And this is in Richmond Hill, where nothing sits for a very long time.
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Lucky
20 replies
Sr. Member
Mar 30, 2017
875 posts
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Toukolou wrote: Anyone know what the benefit of an exclusive listing would be to a seller?

I've seen a couple of exclusive listings sit for sale for a long time in my neighbourhood. And this is in Richmond Hill, where nothing sits for a very long time.
like 0?
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Member
Nov 30, 2015
418 posts
496 upvotes
Dartmouth, NS
We recently put an offer on an “exclusive listing”. The agent worked in the same office as our agent so we had first shot at the property before it went to the open market. We were assured by the agents that this house wouldn’t last, and it truly was a nice property. Almost exactly what we were looking for. We put in a solid offer with no conditions and a good deal over asking. Another buyer did as well and we were told it was within the same range as our offer, and that the sellers were countering about 30k over that.
The whole thing left us annoyed and even in a hot market we could smell the greed and decided to not put any further offers in, our offer expired.
Well, the seller’s counter offer was apparently refused and it went to the normal market, and they upped the asking price a little. The house sat on the market for more than a week before being sold, selling price was 50k below our offer price! We felt like we had dodged a bullet, having very nearly way overpaid for a house, but also disappointed because we would have liked living there.
I think exclusive listings can be good for the seller because they can create a sense of urgency on top of an already hot market. It’s totally pitched to the buyers as a golden opportunity, but it makes no sense to me how it would benefit a seller to limit his options in buyers.... unless the buyers were qualified fish in a barrel. But if it doesn’t sell it can kill the momentum of the listing. I bet those sellers are kicking themselves for being greedy. I really blame the agents though.
Deal Addict
Jul 30, 2015
2859 posts
1864 upvotes
Toronto, ON
GroverTime wrote: We recently put an offer on an “exclusive listing”. The agent worked in the same office as our agent so we had first shot at the property before it went to the open market. We were assured by the agents that this house wouldn’t last, and it truly was a nice property. Almost exactly what we were looking for. We put in a solid offer with no conditions and a good deal over asking. Another buyer did as well and we were told it was within the same range as our offer, and that the sellers were countering about 30k over that.
The whole thing left us annoyed and even in a hot market we could smell the greed and decided to not put any further offers in, our offer expired.
Well, the seller’s counter offer was apparently refused and it went to the normal market, and they upped the asking price a little. The house sat on the market for more than a week before being sold, selling price was 50k below our offer price! We felt like we had dodged a bullet, having very nearly way overpaid for a house, but also disappointed because we would have liked living there.
I think exclusive listings can be good for the seller because they can create a sense of urgency on top of an already hot market. It’s totally pitched to the buyers as a golden opportunity, but it makes no sense to me how it would benefit a seller to limit his options in buyers.... unless the buyers were qualified fish in a barrel. But if it doesn’t sell it can kill the momentum of the listing. I bet those sellers are kicking themselves for being greedy. I really blame the agents though.
Did the agent try coming back to you to put in an offer still?
Member
Nov 30, 2015
418 posts
496 upvotes
Dartmouth, NS
canoek wrote: Did the agent try coming back to you to put in an offer still?
Yes they did, but no indication that they had no other offers of interest. By then we had moved our attention to another property, we reasoned that we had already made our best offer and they wanted more than we were prepared to offer there was no point in resubmitting.
Deal Guru
Feb 9, 2009
11400 posts
9885 upvotes
GroverTime wrote: We recently put an offer on an “exclusive listing”. The agent worked in the same office as our agent so we had first shot at the property before it went to the open market. We were assured by the agents that this house wouldn’t last, and it truly was a nice property. Almost exactly what we were looking for. We put in a solid offer with no conditions and a good deal over asking. Another buyer did as well and we were told it was within the same range as our offer, and that the sellers were countering about 30k over that.
The whole thing left us annoyed and even in a hot market we could smell the greed and decided to not put any further offers in, our offer expired.
Well, the seller’s counter offer was apparently refused and it went to the normal market, and they upped the asking price a little. The house sat on the market for more than a week before being sold, selling price was 50k below our offer price! We felt like we had dodged a bullet, having very nearly way overpaid for a house, but also disappointed because we would have liked living there.
I think exclusive listings can be good for the seller because they can create a sense of urgency on top of an already hot market. It’s totally pitched to the buyers as a golden opportunity, but it makes no sense to me how it would benefit a seller to limit his options in buyers.... unless the buyers were qualified fish in a barrel. But if it doesn’t sell it can kill the momentum of the listing. I bet those sellers are kicking themselves for being greedy. I really blame the agents though.
wow. yeah dodged a bullet. in milton the higher end has already topped out... some sellers trying to get greedy but buyers arent budging it seems. obviously anything around a mil still moving in decent speed.

if im the seller i would be pissed that i lost 50k lol.
Deal Fanatic
Mar 27, 2004
5704 posts
3583 upvotes
Toronto
Usually for higher end properties. Seller may only want serious buyers.
Full-time Realtor
Deal Fanatic
Mar 27, 2004
5704 posts
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Toronto
Jon Lai wrote: Doesn't exclusive listings usually mean no co-op, so the seller likely isn't paying the buyer co-op?
exclusive just means not on realtor.ca

they end up being on broker bay usually
Full-time Realtor
Deal Fanatic
Jul 4, 2004
6404 posts
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Ottawa
I honestly don't see how exclusive listings benefit anyone but the listing agent / brokerage.
Sr. Member
Feb 14, 2005
685 posts
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Toronto
As @oasis100 said, exclusives are used for high end properties. I argue $7M or more.

I've seen it used properly when the house is located in a desirable area with low inventory - Richvale in Richmond Hill, Hoggs Hollow in Toronto. The seller wants to deal with serious buyers of a particular networth, and would typically contract with an agent who specifically deals with those properties and clients of that wealth.

Another reason for exclusives is if a high end builder wants to "monopolize" an area and they have multiple houses on the market. These builders have agents they work with to control supply and pricing.

Again, exclusives are for very high end properties with low supply but high demand.
[OP]
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Dec 4, 2009
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raxen wrote: As @oasis100 said, exclusives are used for high end properties. I argue $7M or more.

I've seen it used properly when the house is located in a desirable area with low inventory - Richvale in Richmond Hill, Hoggs Hollow in Toronto. The seller wants to deal with serious buyers of a particular networth, and would typically contract with an agent who specifically deals with those properties and clients of that wealth.

Another reason for exclusives is if a high end builder wants to "monopolize" an area and they have multiple houses on the market. These builders have agents they work with to control supply and pricing.

Again, exclusives are for very high end properties with low supply but high demand.
The listing I'm thinking of specifically is a 45'x241' lot in Richmond Hill, teardown house, I'm assuming under $2mil. But even when I look up the listing agent, she has no listings on her profile.

Basically they're saying, unless you have an inside track somehow, we're not interested in your offer. It's ridiculous.
"I'm a bit upset. I've been grab by the back without any alert and lubrification"
Lucky
Sr. Member
Feb 14, 2005
685 posts
394 upvotes
Toronto
Toukolou wrote: The listing I'm thinking of specifically is a 45'x241' lot in Richmond Hill, teardown house, I'm assuming under $2mil. But even when I look up the listing agent, she has no listings on her profile.

Basically they're saying, unless you have an inside track somehow, we're not interested in your offer. It's ridiculous.
Since you know the name of the listing agent, I'll assume that she stuck a sign with her phone number on it, and if you're interested in the property, I don't see why you can't call her to view it. It's being publicly advertised to generate interest. No inside track or connections required.

The exclusives I was thinking about were ones where the sign isn't even there.
[OP]
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Dec 4, 2009
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raxen wrote: Since you know the name of the listing agent, I'll assume that she stuck a sign with her phone number on it, and if you're interested in the property, I don't see why you can't call her to view it. It's being publicly advertised to generate interest. No inside track or connections required.

The exclusives I was thinking about were ones where the sign isn't even there.
Lol, I would hardly consider a telephone number on sign as "advertising", you aren't seriously suggesting that that constitutes advertising are you? You can't even find this listing anywhere online.

I certainly hope the seller is paying a commission commensurate to the effort this agent has put into selling this property, because from what I see (over 5 weeks on the market), they're seriously mailing it in, even at a time of unprecedented "mailing-in" by sales representatives these days.
"I'm a bit upset. I've been grab by the back without any alert and lubrification"
Lucky
Sr. Member
Feb 14, 2005
685 posts
394 upvotes
Toronto
Toukolou wrote: Lol, I would hardly consider a telephone number on sign as "advertising", you aren't seriously suggesting that that constitutes advertising are you? You can't even find this listing anywhere online.

I certainly hope the seller is paying a commission commensurate to the effort this agent has put into selling this property, because from what I see (over 5 weeks on the market), they're seriously mailing it in, even at a time of unprecedented "mailing-in" by sales representatives these days.
What’s the address? PM me if you don’t want to help out the agent with her advertising.

In the end, a sign is still considered publicly advertised albeit poorly done. Worked for you, didn’t it? You’re interested but won’t call the listing agent so I’ll just leave it at that. Maybe the seller is a builder and is looking to sell a turnkey development. Maybe there’s a whole host of other reasons. No point speculating online.
Deal Fanatic
Jul 3, 2011
5998 posts
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Thornhill
There are many. Depends on the seller.

In all but where the listing Realtor is fishing for buyers or for double-ending the deal (same as with the coming soon sign) it usually invloves privacy.

I've witnessed all of these either as a buyer or listing representative:

The seller does not wish their property advertised on the internet for any and everyone to see or repost just for fun as with sites like blogto or the mash or as evidenced in threads in here where it's the favourite passtime. Those footprints remain on the internet.

Sometimes the sellers just don't want the neighbours to know - could be a breakup, nosey neighbors where they'd rather sell first then announce it later.

Many times it's a spouse or a partner who retained the house that doesn't want the ex to know, and sometimes it is because the ex was abusive or a stalker.

There are many people who are very private persons who prefer to keep it as discreet as possible where possible because the property is in their name and not their spouse or an entity. For example, while I have sold exclusively, my advertising is copyright protected as proprietary and washed from the internet on closing even from my own website so it affords such people a degree of privacy.

Sometimes it's because it is the only alternative they can afford.
Toukolou wrote: Anyone know what the benefit of an exclusive listing would be to a seller?

I've seen a couple of exclusive listings sit for sale for a long time in my neighbourhood. And this is in Richmond Hill, where nothing sits for a very long time.
Deal Expert
May 30, 2005
45883 posts
6369 upvotes
Richmond Hill
licenced wrote: There are many. Depends on the seller.

In all but where the listing Realtor is fishing for buyers or for double-ending the deal (same as with the coming soon sign) it usually invloves privacy.

I've witnessed all of these either as a buyer or listing representative:

The seller does not wish their property advertised on the internet for any and everyone to see or repost just for fun as with sites like blogto or the mash or as evidenced in threads in here where it's the favourite passtime. Those footprints remain on the internet.

Sometimes the sellers just don't want the neighbours to know - could be a breakup, nosey neighbors where they'd rather sell first then announce it later.

Many times it's a spouse or a partner who retained the house that doesn't want the ex to know, and sometimes it is because the ex was abusive or a stalker.

There are many people who are very private persons who prefer to keep it as discreet as possible where possible because the property is in their name and not their spouse or an entity. For example, while I have sold exclusively, my advertising is copyright protected as proprietary and washed from the internet on closing even from my own website so it affords such people a degree of privacy.

Sometimes it's because it is the only alternative they can afford.
I understand the privacy part, but what do you mean with the last point?
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May 7, 2015
392 posts
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Toronto, ON
Toukolou wrote: Lol, I would hardly consider a telephone number on sign as "advertising", you aren't seriously suggesting that that constitutes advertising are you? You can't even find this listing anywhere online.

I certainly hope the seller is paying a commission commensurate to the effort this agent has put into selling this property, because from what I see (over 5 weeks on the market), they're seriously mailing it in, even at a time of unprecedented "mailing-in" by sales representatives these days.

What? A lawn sign with a telephone number is textbook definition of advertising.
Deal Fanatic
Jul 3, 2011
5998 posts
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Thornhill
Jon Lai wrote: I understand the privacy part, but what do you mean with the last point?
The point you ask about was: " Sometimes it's because it is the only alternative they can afford."

There are some sellers whose equity in the property or finances severley limits them to the amount of fee they can pay to a buyer's agent. In an exclusive agreement, it is entirely up to the listing agent if they will or will not agree to pay a buyer's agent a fee on an individual basis. The listing agent could have agreed to try to sell the property without paying such a fee or for a small additional stipend if the buyer has no agent, to assist the seller's bottom line.

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