Exclusive listing prohibition blog post

This year we will see unprecedented changes to the Real Estate Industry in Canada.  Today I want to talk about one very important change to how listings are handled.

It has become commonplace to have a time period between signing a listing agreement and posting your home onto the market for the purposes of readying the home for sale.  This time was usually governed by an exclusive listing agreement not on MLS where you signed an agreement with your listing brokerage then when the home was ready another agreement would be signed to put the home on the MLS system.

What is an exclusive listing?

Basically an exclusive listing is an agreement with your listing agent/brokerage to privately market your home to their client list or other methods that do not post the home on the area wide MLS.  Traditionally called “Pocket Listings” this method is more used in the commercial real estate area.   In residential real estate a client may not want their property on the MLS to enhance their privacy if they don not want photos of their home available to the general public.  Celebrities or other notable persons may not want their home exposed to agents and buyers due to privacy or safety concerns.  In most cases however those types of home owners generally buy property under corporations so the average person has no knowledge of who the true owner is.  

The above are legitimate reasons to want your home sold under an exclusive listing however the exclusive listing process has been misrepresented to many sellers and has been designed to benefit the listing agents to allow for double ending of the properties in my opinion.

In short when marketing a product the purpose of marketing is to get as much exposure to as many consumers as possible in order to garner offers to buy the product.  That philosophy has been used for millions of products around the world for decades.  

So why would anyone want an exclusive listing to market their home?

In short they wouldn’t unless under extreme circumstances.

This is where the new legislation comes in.

Now there is a new federal legislation governing when your home stipulating that a home must be listed on the MLS within 3 Days of marketing the property to the public.  In short as soon as your agent places a sign on the property and starts to market the property to the public it must be available on the MLS.  

How will this benefit you?

In short your home will be shown to tens of thousands of agents and buyers on the MLS and thousands of real estate websites giving your home wide exposure which is the primary responsibility of your agent.

There is a document that a client can sign outlining the pros and cons of an exclusive listing which will allow for an exclusive listing to take place.   The other important consideration will be how to deal with the coming soon period, the time it takes to get the home ready.  This method has developed over the past few years to develop interest in the home.  On the surface this process will be at an end.  Frankly it’s rate of success is debatable.  

In conclusion I feel that this overall will be a positive change to the industry allowing for a more transparent process in your real estate experience.  Remember we are fiduciaries and the best interest of you our client is our top priority.  An exclusive limited marketing listing is very seldom the best way to sell your home.

I would love to know your thoughts

Some ideas to secure your home or add to your privacy when listing. 

• Safely store or remove your valuable belongings
• Don’t have open houses if you feel unsafe or do not wish it.
• Have the brokerage call you to authorize all showings 
• Have a showing schedule that works for your family
• Use an electronic lockbox that only allows a code to be used during the scheduled time.
• With high end luxury properties it is acceptable to have the listing agent present for all showings.
• Signs on your property are not mandatory however are recommended.  If you wish it we can sell your home without a for sale sign on the property.
• If you are a public figure then purchasing a property under a corporation may be recommended.