Play Devil`s Advocate – I guess the commission paid by the seller would be less than the typical 5%, so there is a financial incentive there. I`ve also seen how, in some neighborhoods, a lack of exposure to MLS may not be as important. I know in my hood, every weekend between 2 and 4, there is literally a parade of people who go from home to open, at night there are cars that circulate in the side streets looking for signs that a house could put on the market, and every day there are flyers in my mailbox that promote new offers. I guess someone who is actively looking in a particular neighborhood will be informed of an exclusive offer, even if it`s not on MLS. Agents of an exclusive list receive commission from a property if it is sold within the exclusivity period, regardless of how the buyer is found. Exclusive offers are popular with sellers who prefer an extra level of privacy when selling the house. In some cases, commissions related to an exclusive list may be lower because the real estate professional does not have to pay the MLS fee. First, I guess you have to come back before MLS existed to figure out what an exclusive offer is, because it actually happened before the run-of-the-mill listings that we know now. I don`t put a lot of weight on the sales numbers list. Too many agents list at stupidly low prices, so they can say they got 150% of the list price if the house sells for what it`s actually worth.
That said, the basic 3bed/2bath SFHs in my Midtown neighbourhood seem to have gone from about $1.1 million to $1.3 million this spring. An exclusive list gives the listing agent the exclusive right to sell the property. This means that even if you sell the property at your own perspective for the duration of the list, you must pay the agreed commission to the listing agent, unless that interest representative has been expressly excluded from the listing agreement. From a marketing point of view, an MLS entry has a big advantage over an exclusive offer, but there may be situations where exclusive offers are attractive. For example, if an owner does not want to publicly send that she is selling her home, she can make an exclusive list so that the sale can be made in a very quiet and controlled manner.