Private Exclusive Listing – Right For You?

The current real estate market is seeing an explosion of new listings with 22% more listings in Anne Arundel County than in 2024. This notable increase in homes for sale is leading to a shift from a seller’s market to a more normal market. Terminology is extremely important to understand before possibly diving deeper into an intelligent conversation about market dynamics and home selling strategies. Labeling a market as a seller’s market, normal market, or buyer’s market is actually rooted in simple mathematics:

Months of Inventory Equals Number of Homes For Sale/Number of Homes Sold Per Month

Seller’s Market Equals less than Four Months of Inventory
Normal Market Equals Four to Six Months of Inventory
Buyer’s Market Equals Six-Plus Months of Inventory

A segmentation of a market may exist within a broader market. For example, it is a deep buyer’s market currently for waterfront homes above $3 million in Anne Arundel County, but conversely it is a deep seller’s market for homes between $500,000 to $1 million in Severna Park.

During the “COVID years,” private exclusive listings or off-market sales became a prominent strategy due to the total imbalance of inventory and demand. During the years 2020-2022, there was less than a one-month supply of inventory, which was the strongest seller’s market we have ever witnessed. Buyers were crazed and willing to extend inconceivable terms to simply secure a home.

In a shifting market, the allure of a private listing should be tempered with a market analysis. A home seller should absolutely know what type of market their home exists within. Too often, I am observing home sellers falling into a sexy narrative about private exclusive listings. The top three statements I hear daily related to off-market (not listed on the Multiple Listing Service) home sales are:

“Buyers pay more for off market homes.” FALSE – Homes listed on the MLS sold for almost 20% more than private sales.

“Private listings attract elite buyers and have an aura of exclusivity.” FALSE – Private sales draw attention to the questionable motivation of the seller and exclude the majority of the marketplace.

“A private listing allows me to test the market.” FALSE – Limited exposure is never a thorough test.

There are certain situations where the private exclusive listing (not listed for sale on the Multiple Listing Service) is convenient to a home seller. The top five situations I experience in practice may include:

1. Condition: A seller is considering making significant repairs to a home and would like to find a buyer willing to accept the home in as-is condition.
2. Privacy: A privacy issue exists (for example, divorce, financial hardship, embarrassment of condition) and the seller just wants the home to be sold without pictures on the internet.
3. Access Issues: An impediment to showing the home exists (tenant occupied, a disagreement among divorcing parties, a medical condition exists within the home, many pets exist)
4. Pre-Market Feedback: If a seller is genuinely interested in obtaining feedback about their condition or price then pre-market marketing efforts is a strategy to test the market.
5. Pre-Market Offer: Word of a sale is leaked to the market or presented through “coming soon” status on the Multiple Listing Service and a seller is presented with an offer that satisfies all their needs or is “too good to gamble with.”

We are not in the COVID years anymore and the market has shifted. Strategies need to be adjusted accordingly and what worked then may not work now. Being completely educated is always the best strategy for making savvy decisions. My professional advice is to be careful of the overstated, exaggerated and hyperbolic statements without supporting data, which can lead to unsupported and contrived strategies.

David Orso was born and raised in this community and is a proud graduate of Severna Park High School. He is a local market expert whose office is based in Severna Park at the corner of Evergreen Road and Riggs Avenue. Orso has been a top agent in Severna Park and Anne Arundel County for sales since 2013 and has almost 400 five-star reviews online. David and Dawn Orso are well known for their philanthropy and community involvement. They have three children, and outside of kids’ sports, they spend their time playing golf and tennis at Chartwell Golf and Country Club or boating on the Chesapeake Bay.

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