Private Exclusive

[Anonymous]

How is this not against MLS rules?

A house in my neighborhood was listed (no where publicly) like this with a sign. Seems super odd.

https://www.compass.com/private-exclusives/

[Anonymous]

Because you’re not required to use MLS to sell a house?

[Anonymous]

Zillow and Redfin are now claiming they will not include on their website any house marketed exclusively like this, should that house eventually come to be publicly listed on the MLS.

Not sure how they plan to enforce this.

[Anonymous]

https://content30.com/zillow-vs-private-listings-what-agents-need-to-know-about-the-new-rules/

[Anonymous]

I thought the same when I saw that on Nextdoor this am. It's done by a realtor too.

[Anonymous]

This happens all the time. Friend bought a home this way a couple years ago.

[Anonymous]

I’m not sure how this benefits the seller at all??

I had someone recommend her realtor and tell me how amazing the realtor was selling her deceased parent’s house off market/pocket listing, only to figure out later in the conversation that the house in question was one we were interested in and would have paid $500,000 more for if it had been on market.

[Anonymous]

Several people in our neighborhood have chosen to do private exclusive listings over the last few years. They have their reasons.

[Anonymous]

Anonymous wrote:Several people in our neighborhood have chosen to do private exclusive listings over the last few years. They have their reasons.

What's weird is these owners have had a steady renter for 10+ years? They don't live in the home and haven't for a very long time so why care about people coming through?

[Anonymous]

I think it’s something they convince sellers to do because it really drives people to their buyers agents.

It can’t be good for consumers overall but it would probably take a court to stop them.

[Anonymous]

There are a lot of reasons why someone might want to sell in Private Exclusive.

1. They want to test the market at a higher price and not rack up days on market on the MLS which can be a negative in a buyer's eyes.

2. They aren't quite ready to go on the open market yet (haven't totally decluttered or whatever) but they want to take advantage of a busy season.

3. They are private people with wealth and only want their property marketed to specific buyers.

4. There are tenants in the property who are moving soon. Tenanted properties generally don't show as well as owner-occupied ones.

5. Any number of personal privacy issues.

I could go on. That said, if the property is listed privately, it's not supposed to have a sign. That is against the MLS rules (around here).

I can tell you though, Compass does not do PE to sell to its own buyers. Plenty of agents from other brokerages get notifications about PE listings. And the agent community in DC is pretty small. If you have a buyer looking in a specific area, you generally know who to ask from various brokerages about private listings.

[Anonymous]

Anonymous wrote:There are a lot of reasons why someone might want to sell in Private Exclusive.

1. They want to test the market at a higher price and not rack up days on market on the MLS which can be a negative in a buyer's eyes.

2. They aren't quite ready to go on the open market yet (haven't totally decluttered or whatever) but they want to take advantage of a busy season.

3. They are private people with wealth and only want their property marketed to specific buyers.

4. There are tenants in the property who are moving soon. Tenanted properties generally don't show as well as owner-occupied ones.

5. Any number of personal privacy issues.

I could go on. That said, if the property is listed privately, it's not supposed to have a sign. That is against the MLS rules (around here).

I can tell you though, Compass does not do PE to sell to its own buyers. Plenty of agents from other brokerages get notifications about PE listings. And the agent community in DC is pretty small. If you have a buyer looking in a specific area, you generally know who to ask from various brokerages about private listings.

MLS changed its policy about signs and they are niw allowed with PEs

[Anonymous]

It seemed to be a thing in Georgetown last year. It seems to have dropped off in frequency this spring.

It flies in the face of economics and profit maximization. The off-market deals usually are taking advantage of old people and unsophisticated heirs.

[Anonymous]

Coming to update that it sold without ever going on the market, but it's FCC so I'm not surprised. Ever since Whole Foods opened up a block down it seems like the prices have skyrocketed.

It'll be interesting to see the final sale price. It should be above 1 million to be worth it.

[Anonymous]

Anonymous wrote:I’m not sure how this benefits the seller at all??

I had someone recommend her realtor and tell me how amazing the realtor was selling her deceased parent’s house off market/pocket listing, only to figure out later in the conversation that the house in question was one we were interested in and would have paid $500,000 more for if it had been on market.

$500k more? Sure, Jan.