Long Island Homeowners – Exclusive Listings

Long Island homeowners sometimes agree to give the agent that they've hired an exclusive listing for a fixed period of time.  During this time period, the only agents that can see an exclusive listing on the MLS (Multiple Listing Service) are the ones that are affiliated with the listing broker. 

In the interest of full disclosure, I have used this technique for a few weeks to allow homeowners to prepare their home to be "show ready." Since I hire a professional photographer to shoot my listings and create the virtual tour, I want to make sure that the home is in the best possible condition before the photo shoot. 

My preference is to load listings onto the MLS with professional photos and a virtual tour on the day that it comes on the market.  There is a lot of competition and inventory in most areas of Long Island, and I want my listings to stand out.  It is just as important to market the home properly to other agents as it is to market the home to the buying public.  Many times, new listings appear with no photo and an image that says "photo not available."  Personally, I don't like this approach, so I don't do it.  As long as I have the professional photos and a virtual tour loaded onto the MLS, I want other agents to see it, as this gives me the best chance to sell the home quickly and for the most amount of money.

Exclusive listings have a purpose if they are used for preparation of the home, but they should never last for longer than a few weeks if at all possible.  In all honesty, I have no idea why any given agent is using an exclusive listing, because that is between the homeowner and the listing agent.  My concern is for those homeowners that are led to believe that their home will be marketed to other agents on the MLS, but the marketing is done in such an ineffective way that the home is, for all intents and purposes, an exclusive listing.

It is not legal to speak about specific commission splits, but suffice it to say that there is a number that is considered to be average on Long Island.  Any number that is higher or lower than the average is noticed in either a positive or a negative light.  With the competition on the market, and increased inventory, paying a very low commission split is tantamount to having an exclusive listing. 

The further that the commission split deviates from what is considered to be average, the more impact it will have on the showings that your home receives.  This post was inspired by seeing a commission split on one particular home that was so low that the home may as well been an exclusive listing.  Without using specific numbers, I can say that the commission split was 25% of what is considered to be average on Long Island.

If you are a Long Island homeowner that is thinking about placing your home on the market, it is in your best interest to make sure that your agent is offering enough of a commission split to entice other agents to show your home.  If not, you run the risk of having an exclusive listing by default, instead of by choice. 

As a Long Island homeowner, you should do whatever you can to ensure that your home stands out in today's buyer's market.