There’s been much conversation lately about Open Market versus Exclusive Listings and which option is best for home sellers and buyers when it comes to equal access to inventory and data.
Open Market vs. Exclusive Listings: What’s the Difference?
Open Market listings are placed on the Multiple Listing Service (MLS), giving real estate brokers and agents equal access to information about the property. By contrast, Exclusive Listings are not placed on the MLS. The listing broker and agents may choose to retain the information and potentially are the only ones who can show the property.
Which is better for home sellers?
When an agent lists a home for sale, they commit to securing the highest price and best terms for the seller. After consulting with a professional Realtor, a majority of informed sellers will choose to put their home on the MLS. 1000WATT, a national real estate strategy agency, recently confirmed that 97% of experienced sellers would choose to list their homes on the MLS so that all brokers and agents have access. And millions of monthly views are attracted by platforms like Zillow, Realtor.com, and other brokerage websites which depend on MLS data ensuring the property reaches the maximum number of qualified buyers.
Here’s a real-life example: Last year, one of our agents listed a house on the open market at $2 million. Due to multiple offers, it sold for $800,000 over the asking price. The buyer was working with a smaller co-op broker, raising the question of whether the final sales price would have been as high without being listed on the MLS.
While this example is extraordinary, the fact remains: listings on the MLS sell for an average of 17.5% more than those not listed. In a 2023 study, sellers in the Bright MLS footprint earned nearly $54,000 more on average by listing their homes on the MLS.
In fact, a recent search of three of our market areas revealed that, of the 767 sales entered into the MLS in the last six months, 330 (43%) sold for over the asking price.
One seller’s experience underscores the importance of professional guidance:
“As a recent home seller, my agent helped me make an informed decision to list my home on the MLS. Without her professional guidance and ethical approach to a complicated set of offers, I would have made a blind—or at best uninformed—choice that initially seemed optimal but ultimately would not have been in my best interest.”
Brokers and companies who market properties as Exclusive Listings significantly limit the number of potential buyers who can access the property, making it challenging to deliver on their promise of securing the highest price and best terms.
There are situations where Exclusive Listings align with the seller’s best interests. These may involve privacy concerns, accommodating a household member with health issues, or gathering feedback to refine a pricing strategy before listing the property on the open market.
Which is better for home buyers?
For buyers, an open market creates a level playing field with transparent, accurate, and complete property information. Buyers can view nearly all homes available for sale in one place, reducing the need to navigate fragmented networks or rely on insider connections. The homebuying process becomes more seamless when they can view almost all available homes with the support of their buyer agent. Without MLS access, buyers may need to contact multiple brokers and face limited or no representation during the offer process.
An open market ensures that all prospective buyers, regardless of their background, have access to the same information, promoting equitable opportunities to purchase a home. Transparency and equitable access to information—including pricing details—are the cornerstones of a fair housing market.
Conclusion
In the end, the decision to list a property on the open market via the MLS is about fairness, transparency, and achieving the best outcomes for everyone involved. Open market listings consistently deliver higher returns for sellers, greater access and choice for buyers, and reinforce the ethical and professional standards that should guide the real estate industry. #OPENMARKET
