L
eo Pareja, CEO of eXp Realty, is a vocal opponent of private listings, which he believes can lead to unfair advantages for some sellers and harm the broader real estate market. "As a leader, you have to draw a line," he said in an interview with Real Estate News. "We're not just competing on price; we're competing on value and service."

    Pareja's stance is rooted in his experience as a residential Realtor, where he has seen firsthand the importance of transparency and fairness in the home buying process. He argues that private listings can create an uneven playing field, where some sellers have access to more information and better marketing opportunities than others.

    To highlight the risks associated with pre-marketing homes privately, eXp Realty recently released a disclosure form for sellers, which outlines the potential consequences of choosing not to list their home on the MLS. Pareja believes that agents who push for private listings are putting themselves at risk of lawsuits from sellers who feel they have been misled.

    While some brokerages may see private listings as a way to gain an advantage in a competitive market, Pareja is adamant that this approach can ultimately harm consumers and the industry as a whole. "If you want to know the truest form of value, list your house for $1 and wait two weeks," he said. "You'll know what it's worth by exposing it to the most people."

    Pareja also warned of potential fair housing violations stemming from private listings, which can create an uneven playing field where some groups may not have access to the same information as others. He believes that a class action lawsuit is a real risk for agents who adopt this marketing strategy.

    Despite eXp Realty's own Exclusives channel, Pareja emphasized that it accounts for less than 1% of listings and is not a key part of his company's business strategy. "We don't teach it and we don't encourage it in any way, shape or form," he said.