Off Market Sales -- Who do They Benefit?
Can you say "Cha-Ching" boys and girls?!?
This is a re-blog of Norma's post. And, in my opinion, who benefits is the listing agent.
The "off market" listing, aka the "pocket listing" is counter-productive on many levels, IMHO.
I wrote a similiar post about this practice a few days ago. There's not a lot of it going on here, however I am getting very suspect of the "ZERO" days on the market bull crap found in the reporting of property sales in the RMLS. These "off market" agents are playing hard and fast with the RMLS rules, IMHO. Unless they have the seller's signature stating that the listing is NOT to be advertised in the RMLS, they may have some explaining to do. I also can't fathom how the listing agent does their client any good with the double-dip, real motivation, behind this. The in-house sales are suspect, and do one thing: make more commission income for the brokerage. There is nothing the promotes the market, but rather, hordes listings to a bunch of greedy, want-it-all agents who want to exploit the market. They may push a buyer into one of their listings when there may be, in fact, other GREAT properties out there that would be suitable.
I also think this is a ploy to get buyer clients. The sense of urgency in a fast-paced market, perhaps. I think it's really against everything I, personally, stand for as a Realtor(r) . . . but then I like to practice with integrity and ethics.
"Yeah, let me be your buyers agent, I got your listings right here . . . in my pocket."
This practice of working entirely for the sellers . . . and this is what happens when the listing agency hordes their listings and "off markets" them, is what created the NEED for buyer agency in the first place.
Everything old is new again.
However, in this day-and-age, the Internet is the level playing field. Buyers can look at what's on the market and not be duped by the "off market" agent.
Selling both sides of the transaction is money in their pocket. Doesn't do the buyer or seller any good, really.
If I were the Managing Broker I would make "off market" and "pocket listings" a DO NOT TAKE office policy. The ZERO days on the markets are going to screw up the statistics as well. Why have a MLS keeping stats, if they're just going to get skewed up?
Networking has taken on new meaning in the current real estate market. There are "secret" networking groups within larger company networking meetings. "Closed" networking cliques exist as well as "luxury home" networking systems. Often these networking meetings are by invitation only. The goal is to sell a property before it hits the open market and receives dozens of offers.
In my opinion, this may not be the best route for either the buyer or the seller. I do think it works well for the agents--there I said it. If the purpose of placing a property on the Multiple Listing Service is to expose it to a wide variety of agents and their clients, then keeping it as a "pocket" listing and off the MLS is to do quite the opposite. Yes, I know there can be many reasons for not putting a property on the MLS, but I often wonder if those reasons were truthfully explored with the seller?
When I represent a seller it is my duty to work diligently to obtain the highest price the market will bear. If I only expose the listing to my buyers and agent pals am I really fulfilling my fiduciary duty to my client? Not in my little black book of moral and ethical codes I try to live by.
Likewise, when representing a buyer my duty is to obtain the best deal the market will bear. If there are 20 buyers bidding for a property what the market will bear may be grossly different than if there is only one buyer bidding on a property. This is a difficult market for buyers and their agents, but it is crucial to keep the welfare of our clients first and foremost in mind.
Sell Smart, Buy Wise and Live Well
Norma Toering & Team RE/MAX Estate Properties
(310) 493-8333PalosVerdesLifestyle- Norma's award winning site as the best Palos Verdes homes and real estate blog since 2007. Selected by Relocation.com as one of the top ten Los Angeles area real estate blogs. Chosen by MovingCost.com as one of the best Los Angeles realty blogs. Awarded 5 out of 5 stars by Lender411 blog review. Ranked by Technorati in the top 1% of all blogs. As seen in the Daily Breeze newspaper.
South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach. Based on information from the Association of REALTORS®/Multiple Listing as of the initial date of this article/blog publication and /or other sources. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
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