Call it the latest debate in real estate. Simply stated: Should sellers list their home on the Multiple Listing Service (MLS)? Or, as some brokerages insist, will they gain the best possible price with an “exclusive listing” or “off-market sale”?
Let’s Give a Hearing to Both Sides of This Issue.
Some very large real estate corporations argue that NAR’s Clear Cooperation policy, (which mandated use of the MLS) was mainly designed to consolidate NAR’s hold on the industry. They call it “forced cooperation,” because they feel that listing on the MLS eliminates choice for consumers and agents.
These brokerages prefer to maintain a tighter hold. They believe that exclusive listings—which for example, can conceal days on market and price drops—can lead to higher prices than public listings.
On the other hand, proponents of Clear Cooperation point out that listing on the MLS casts the widest net to prospective buyers. This creates more competition. Further, it also helps support fair housing. If a property is only marketed to a select group, it could exclude people in protected classes (such as by race, color, religion, sex, etc.) Transparency helps maintain a fair and equitable market.
Is There Any Consensus Within the Industry?
Not yet. However, in a post NAR settlement world, one where new regulation governs how commissions are being handled, this much seems obvious: We should be focused on more transparency for ALL clients. Not less.
Where those in the real estate business stand on this issue is, not surprisingly, tied to business interests and philosophies. If your goal is to dominate the marketplace and control property listings then quite obviously endorsing the use of the MLS is not going to be your thing.
What Is Our Point of View at Donnelly + Co.?
We believe that if maximizing value for your home is your end goal (and I have yet to meet a seller for whom it is not), then our resounding suggestion is to list on the public platform. That way, your buyer, wherever—or whoever—they may be, can find you.
Yes, there can be benefits to a quiet and private sale—less disruption, less traffic through your home, less invasion of your privacy. But it’s really quite simple: maximum exposure to maximum buyers equals maximum price and terms. With more exposure comes more competition. And we all know what happens when competition on a home is high.
As we tell our agents, if your business strategy is to do what’s best for your client, to excel at the job for which you have been hired, and to genuinely earn the commission you are collecting, then using a “maximize exposure” platform is unquestionably the right move.
