Overview: The Hidden Costs of Private Listings
In real estate, transparency is critical. Yet, some brokerages promote private listings (also called exclusive or off-market listings) which may seem appealing to sellers. While they can look like a convenient strategy, private listings often benefit the agent more than the seller. Here’s what you need to know before agreeing to keep your home off the MLS.
Understanding the Realtor Cooperation Policy
The Canadian Real Estate Association (CREA) enforces a Realtor Cooperation Policy to ensure fairness and transparency. This policy prevents agents from keeping listings private for personal or brokerage gain.
Key points:
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Listings must be made available to all realtors and buyers.
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Maximum exposure benefits the seller.
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Private marketing (signs, social media, private websites) without MLS listing is restricted.
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If a realtor markets your home publicly, they must list it on the MLS within three days.
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Private promotion within a brokerage can occur for a brief period, but sales during this time are rare and often result in limited offers and poor negotiating power.
Why Sellers Should Be Cautious
1️⃣ Limited Exposure = Fewer Offers
Private listings dramatically reduce the number of buyers who see your home, often leading to lower offers or no offers at all.
2️⃣ Weaker Negotiating Position
Less competition means buyers have the advantage, not sellers.
3️⃣ Agent Conflicts of Interest
Some agents recommend private listings not for your benefit, but to avoid competition or keep potential clients from seeking other agents.
Questions Every Seller Should Ask
Before agreeing to a private listing, ask:
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Do I have a written agreement confirming how my home will be marketed?
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Why is my home not listed on the MLS for all buyers to see?
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Who truly benefits from keeping my listing private?
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What About Buyers?
Many buyers worry about missing out on private listings, but the impact is minimal. Most private listings eventually transition to the MLS, where all qualified buyers have access.
The idea that private listings offer buyers “secret” opportunities is largely a myth.
Bottom Line: Transparency Benefits Everyone
For sellers:
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Private listings reduce exposure and weaken your ability to negotiate.
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The MLS offers the broadest reach and best chance to get top dollar.
For buyers:
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Focus your search on MLS listings where fair competition ensures you see the best available properties.
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Work with Greater Calgary Real Estate
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If you’re considering selling, make sure you receive clear, transparent advice and marketing that maximizes your property’s exposure.
Contact Greater Calgary Real Estate to discuss how we market homes for success — with your best interests as the top priority.