New eXp disclosure form warns sellers of pre-marketing risks 

In an effort to educate consumers about the hotly debated push into private listings — something viewed as a competitive advantage by brokerages like Compass and KW GO — eXp has announced updates to its agent toolkit including a new disclosure form for sellers looking to pre-market their home off the MLS. 

The brokerage, which leads the industry by transaction sides, describes its latest addition as "seller choice, accompanied by seller truth," playing off Compass CEO Robert Reffkin's frequently cited view that limiting or forbidding pre-marketing impedes on an individual seller's rights to list their home how they choose. 

Along with the new disclosure form — "Risks of Limited Market Exposure" — the toolkit now includes links to research from Bright MLS, Zillow and the Consumer Federation of America that suggest homes take longer to sell, get fewer views and sell for less with pre-marketing and private exclusives. The move follows eXp's recent endorsement of Zillow's new listing standards which prohibit listings that are publicly marketed but not on the MLS.

What the form says: Similar to the buyer agency agreement eXp introduced last summer, the pre-marketing disclosure form for sellers is a single page written in plain language. It highlights four main points: Private exclusives not on the MLS limit buyer exposure, introduce financial risk, could result in a longer sale time, and will prevent their home from being listed on the top home search sites. 

"eXp Realty strongly encourages you to consider exposure to the broadest market possible, which includes the Multiple Listing Service and broader public marketing channels available to all consumers, prior to accepting an offer," the disclosure states in bold text just before the seller's signature line. "Ultimately, the final choice of marketing direction is at your discretion." 

Also similar to the brokerage's buyer agreement, eXp is making their pre-marketing disclosure form "open source" and available for use by anyone in the industry, the company said. 

What eXp leaders had to say: During a Wednesday livestream presentation, eXp Realty CEO Leo Pareja and SVP of Brokerage Operations Holly Mabery discussed the latest additions to the agent toolkit, as well as their thoughts on the private exclusives push from Compass and others. 

Pareja warned of a future "fair housing disaster" where buyer choice is limited, and expressed concern about monopolistic and antitrust issues that could lead to a potential class action "mess" for the brokerages pushing their agents and sellers into exclusive channels. Mabery highlighted the brokerage's fiduciary responsibility and commitment to doing what is in the best interest of sellers.

"I can appreciate the cynics who brush off our position simply because we're a large brokerage, but let's be honest, if we were acting purely as capitalists, we'd be on the other side of this argument. Given our size and scale, we benefit most from closed networks," Pareja said. While not naming the brokerage directly, he appeared to describe Compass as a firm "born out of greedy venture capital" which is "now in a rush to appease Wall Street investors." 

"We want to empower sellers and not restrict buyers," Mabery said. "Anytime we limit access, it limits opportunities."