Why Real Estate Shouldn’t Be “Exclusive”

There’s a lot of talk in the Real Estate industry lately about “Exclusives,” so let’s talk about what they really are and why they’re bad for both buyers and sellers. 

In an aggressive push to capture market share, a big-box real estate conglomerate has introduced “exclusive” listings. Marketed to home sellers as a savvy, multi-step marketing strategy, it’s important to be clear about exactly what it is: a corporate profit grab. They want home sellers to agree to let them market their property as an “exclusive” listing open only to other agents from the same real estate conglomerate, so that they can secure a buyer who is also working with an agent from the conglomerate, and the conglomerate can capture both the sellers’ agent commission and the buyers’ agent commission. Only if that effort fails, will they then list the property more broadly so that buyers who aren’t working with a conglomerate agent can buy the property.

As a corporate strategy, it makes a lot of sense. It creates a closed system for listings in which the conglomerate can optimize for maximum profit. And it also drives up their market share of buyers by instilling FOMO in the buyer marketplace.

But as is often the case, what’s great for the conglomerate is very bad for consumers.

For sellers:

These “exclusive” listings are not (as the conglomerate is claiming) about “seller choice.” Home sellers working with any agent from any brokerage have always had the option to sell their home “off market”. An off market listing is a tool used sparingly in very specific circumstances, either because the seller is a public-facing individual who wants to keep their home sale quiet, or in our highly competitive Bay Area market, because the sellers do not want to spend time and money on prep work and staging to get the property “market ready” and instead want to quietly explore the possibility of a quick as-is sale for a lower price.

In contrast to an off market listing, an “exclusive” listing is being promoted as a viable strategy for all home sellers. But with an “exclusive” listing, once a property has been prepared for market, it will initially be marketed to (and receive offers from) only about ¼ -  ⅓ of the total buyer pool. And with less exposure comes less competition and a lower sales price. (The conglomerate’s own slides pushing this strategy include fine-print disclaimers admitting that using this strategy will not garner the best price for the seller). 

For buyers: 

While it obviously benefits sellers to get maximum exposure to their listing, it also obviously benefits buyers to be able to see and offer on all available properties for sale. But the conglomerate attempts to block access to their "exclusive" listings for buyers working with non-conglomerate agents. And the existence and heavy promotion of the concept of “exclusive” listings creates the perception that buyers have no choice but to work with a conglomerate agent or risk missing out on tons of amazing listings. And when these formerly "exclusive" listings do come to the public marketplace (as the majority do), they are presented as “New” listings, not as listings that ⅓ of the buyer pool already passed on. 

For all:

These “exclusive” listings operate outside of the MLS, where the vast majority of consumer protections are monitored and enforced, leaving buyers and sellers dangerously (and unknowingly) unprotected. 

Lastly, as a pro-consumer agent who favors transparency & inclusivity and is working to expand access to home ownership and repair the harms caused by hundreds of years of discrimination in the real estate industry, it should go without saying that the word “exclusive” and any implementation of that concept has no place in real estate in 2026.

Have you been encouraged to list your property as an exclusive? Did it sound compelling or give you the ick? I'd love to hear your experience.

- Suzy