We use a variety of strategies for identifying off-market or exclusive listings and a bit like KFC’s 11 herbs and spices we can’t reveal our exact recipe… 😉

Since the property isn't listed publicly, this might entail reaching out to our network or by directly contacting potential sellers using door knocking in desired neighbourhoods.

Off-market or exclusive listings often involve different commission arrangements compared to standard MLS listings. This is primarily because there's no pre-existing agreement stipulating who pays the agent's commission. Depending on the specific circumstances, the buyer might pay the agent's commission directly, or the seller might agree to pay it. Regardless of the specifics, the following steps are typically involved:

Buyer Representation Agreement: A buyer representation agreement is signed between the agent and the client. This agreement delineates the terms of the agent's compensation and often includes a clause that ensures the agent's compensation even if the seller doesn't offer a commission.

Closing the Deal: When the client decides to buy the property and the sale is finalized, the agent's commission is typically paid out of the sale's proceeds at closing.

Commission Arrangement: If a seller's agent is involved in the transaction, the commission may be split between the buyer's and seller's agents according to the terms agreed upon. If the seller isn't offering a commission, the buyer may need to pay the agent's commission directly, as per the terms of the buyer representation agreement.

In all scenarios, the precise terms can vary based on the agreement between the agent and the client, as well as the arrangements made with the seller or the seller's agent. An important aspect to keep in mind is that the norms for off-market transactions may differ from those for standard transactions, necessitating the agent to adapt accordingly.

For more on buying real estate in Toronto, check out our buyers guide.

Sellers in Toronto might choose to sell their property off-market or exclusively for reasons such as privacy, discretion, targeted marketing, and speed. Off-market sales are attractive to those who prefer to keep the transaction private, high-profile individuals who want to avoid public attention, or those who wish to target a specific buyer pool. Such sales can expedite the process for those with time constraints and provide a testing ground for sellers gauging market interest.

Off-market sales also afford a seller greater control over negotiations, often resulting in lower costs due to reduced marketing and commission expenses. Lastly, these sales may benefit from personal relationships within the seller's network who can help find suitable buyers. However, sellers must also consider the potential downsides, including limited exposure and possibly lower sale prices.