What's Happening?
In recent months, Compass has begun pushing the idea of “private exclusives” as part of a three-stage marketing strategy. They urge sellers to list their properties on Compass’ exclusive internal portal, Compass One, which they claim will eliminate public displays of days on market and price adjustments. In this scenario, only Compass agents and their buyers and sellers will have access to this inventory. In short, Private listings that are exclusively marketed within one brokerage do not serve the market, and they are a detriment to buyers and sellers.
I'm a home buyer. How do private listings benefit me?
Fact: They don’t. The idea that you might get first dibs on a property will likely come at the expense of an accurate assessment of its value, and the ability to negotiate. Without comparables on the open market, there is no way to gauge fair market value.
I'm a home seller. How do private listings benefit me?
Fact: They don’t. Outside of very rare occasions, private real estate listings dramatically decrease the potential pool of buyers. Advertising a property on the open market can significantly up the odds of multiple bids and potentially end with an over-ask offer.
Are private exclusives legal?
Fact: Yes, but as a go-to marketing strategy, ethically questionable. Whisper Listings are the exception, not the rule. Real estate transactions are subject to fair housing laws, and off-market transactions, especially on a large scale, raise red flags when it comes to discriminatory practices.
Why doesn't Brown Harris Stevens have a Private Exclusives Network?
Fact: For more than 150 years, Brown Harris Stevens has been a leader in real estate because of our knowledge, discretion, and ability to collaborate with agents and brokerages all over the world. Private Exclusive Networks ensure commission is achieved by the same brokerage at both ends of the transaction, with little regard to outcomes for clients.
At Brown Harris Stevens, we believe the most effective marketing tools are transparency and knowledge. For sellers, we know how to market your property, and we know where to find buyers. We want to get you the best price possible, whether that buyer comes from a Compass agent, or anywhere else. For buyers, we know how to anticipate your needs to find that perfect home without trying to lock you in a single brokerage commission trap.
Final Fact:
The only true winner in an end-to-end private exclusive network is the brokerage at either end. Buyers and sellers will ultimately pay the price – or more – without any market insights for leverage.
