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MLS vs Exclusive Listing: What’s the difference?

Recently I was asked an interesting question about the difference between an MLS vs Exclusive listing. Below, I will try and differentiate between the two for you.

The MLS — also a multiple listing system or multiple listings service — is a platform where properties for sale and rent can be listed and viewed by all participating brokers. Here, the commission is split between the listing brokerage and the brokerage whose client eventually purchases the property. This is a particularly useful and most widely used tool for realtors who deal with residential properties, and for those who do not have a large personal portfolio of clients.

An Exclusive Listing, on the other hand, is one which is not published on the MLS; this sort of listing is maintained as the agents personal listing which s/he then sells to a client of their own.

These sort of listings can be extremely beneficial when it comes to commercial real estate since the seller has an opportunity to save on commission here, having only to pay one agent as opposed to two. Exclusive listings, however, tend to work for well established realtors who not only specialize in the property in question but also maintain a large roster of clients who are interested in the said property.

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2 comments

  1. Ben
    December 2, 2015 at 6:57 am

    Hi,

    Thanks for sharing this info. I’ve always wondered what the benefits are for exclusive listing. I have a couple questions below, much appreciated if you could provide some insight. For exclusive listing, is it correct to say that there is less market exposure for the property? Wouldn’t that impact the sale price? Also, isn’t there still a seller agent? how exactly is the commission saved?

    Thanks,

    Ben

  2. Addy Saeed
    April 1, 2016 at 1:56 pm

    Hi Ben, Here’s your answer per question:

    is it correct to say that there is less market exposure for the property?
    Depends on the agent that you’re using! Let me explain… If you’re using an agent that work in your particular neighbourhood exclusively or an agent such as I that works with buyers looking to purchase investment properties, then you’re exposing your listing to my clients that are looking for that particular property. Further, since I would have a relationship with the buyers I’m working with, I can already tell if I would be able to find a buyer hence exposing the property to the buyers that are only looking for that particular neighbourhood or type of property.

    Wouldn’t that impact the sale price?
    It does but if you’re asking fair market value for the property, and are getting market value from the buyer; does the exposure matter? It’s easier for investment properties to gauge fair market value based on income and can get a bit tricky based on low inventories. In all such cases, your best option would be to bring it to the open market.

    isn’t there still a seller agent? how exactly is the commission saved?
    Yes, there is! In this instance, the agent would either be in multiple representation or working with the buyers in a customer service capacity. You would negotiate the commission with your agent and decide on the amount.

    Hope this helps… Feel free to reach out if you have any further questions…

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