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Real Estate Gossip

Real estate gossip can be golden....

Golden egg This isn't a reference to catty back-biting that might center on flings, blings or lifts. Rather, it is the very specific, professional and constructive whispering that goes on between real estate agents who trust one another. It is information savvy buyers crave--and not only in the San Diego real estate market.

This unpublished information shared between professionals is often the information that creates a successful real estate transaction. Many desirable properties are sold before they ever hit the Multiple Listing Service (MLS), as a result of "pocket listing" data being shared between agents. Sometimes there are unpublished reductions, seller motivations, or other personal urgencies that require a fast sale-and such news can travel quickly through a connected professional grapevine. Secret

This precious information cannot be found in the Multiple Listing Service (MLS), on agent websites, in classified sections of the newspaper-or from the "disconnected" and desk-bound real estate vendor. But it is information so valuable that it could save a real estate client far more than any real estate commission. This is a case where gossip can be golden.

Handshake In fact, we are now considering the use of Non-Discolosure Agreements (NDA's) in our real estate practice. This unpublished information might be viewed as proprietary, and certain sellers wish to protect their privacy as much as possible. If buyers wish to be privy to such information, there should be no problem in abiding by the agreement which will also likely include Buyer-Broker provisions.

Posted by Roberta Murphy - Carlsbad Real Estate North County San Diego Realtor on 01/21/2007 03:50 AM

Comments (31)

real estate gossip, nondisclosure agreements, pocket listings, mls, san diego real estate

Originally posted at: The Real View: Real Estate Gossip

Post is included in group: Everything California

31 Comments on Real Estate Gossip

JAN

2007

The dance of the agents before the offer is written and again before the offer is presented in priceless, for sure.

I am not sure I agree with you. I am not sure whose interests you are working in. The dance that agents do with unpublished reductions, information about seller motivation and other "stuff" is scenes, why is it not in the sellers best interests to publish the reductions and see who is out in the marketplace willing to pay at the new price. I worked for ten years in an area that behaved in this way and found it to be more about the agents than the buyer's or sellers. I am currently showing property in a very upscale area in New York State. I am a Buyer's representative in an area where there are still mostly seller's agents. I called one of the agents to show a property and she started to gossip about the seller and told me the property is very overpriced and explained the seller's motivation and what it would sell for. This is the gossip going around her office. WHO IS SHE REPRESENTING? How would you control what is said to who? Would it be the agents within your office would have information that other agent would not have even though those other agents might have buyers? Unless I am misunderstanding it sounds like a step backward? Gossip within an office also can be very hurtful if misused and not very agent is experienced and will know what is appropriate.

I think it's important to have the Sellers sign what can be disclosed and what cannot be disclosed.

Roberta, I think I understand what you mean. I know there is sometimes an unintentional lag between what we, as agents, know, and when that information is conveyed to the MLS system. For instance, yesterday my Seller's counteroffer was accepted by the Buyer, so technically, we are in contract. However, 20 minutes after I got the contract from the buyer's agent I got another call from someone else wanting to show the property. I had to tell him that it was no longer available. It could happen again today, as the person who handles MLS entries in my office works Monday-Friday. The status will not be updated until tomorrow. This occurs in the regular course of business and it can't be helped.

I do understand Miriam's point of view, however. There are intentional withholdings of information that can most often be attributed to an unscrupulous agent who isn't looking out for his client, but his pocketbook. This hurts the clients and it hurts our image as professionals.

There's also another form of missing info and that's at the client's request. Not all properties in our office get posted on the MLS and that is at the Seller's request. For whatever reason, they want a private sale. The office is made aware of it on our listings board but it never makes it out to the general public. These properties are then sold via the listing agent's marketing, part of which is the "real estate gossip" you refer to.

At any given time, an agent is privvy to information that isn't readily available to everyone else. I agree that this can be one of the reasons to work with a professional. Good post.

Roberta,

Thanks for the post. I agree with Ardell on the dance of the agents. As to Miriam's comment, anything in the hands of someone who does not conduct themselves as a professional can be misused and abused. The dance is an attempt to get parties together to the mutual benefit of all!

Roberta,

I think the systems we currently have in place now as Realtors, were put there to keep a level playing field for everyone involved. If I am an agent that is not on the inside circle, but I do have a buyer, then who's best interests are being violated? That could open our profession up to more liability.

Roberta,

Interesting post. It happens to me and I really never realized how valuable it could be.

Roberta, since I know you to be an ethical Realtor...this is a good article for debat. It can be taken in a very negative view and also as a positive. I only believe in dancing when it is in the best interest of my client that I serve and is beyond approach.

Being in the right place at the right time...kinda reminds me of the days before MLS. Word of mouth...calling each other, seeing yard signs and making connections with each other was the only way you find out about listings.

Ardell: The dance is a protective one, to protect and represent the
best interests of our clients. Guiding words are constructive,
specific and professional.

Miriam, Willliam and Ray: I am NOT speaking of willfully holding
information from the MLS. I am referring, for example, to pocket
listings that have no basis for entry into the MLS. What about
selllers who don't want news of their divorce, job loss or pending
foreclosure plastered across the internet? I have had specific
requests from sellers not to share such information in a pubic way.
Permission is obtained in advance to quietly share Sellers' sensitive
information with other agents. Sellers with whom I have spoken would
welcome the protection of an non-disclosure agreement (NDA). It is a
professional tool that can be used to protect the interersts of the
seller--and provide the buyers with what they want: Additional
information.

Ray: The systems in place do help level the playing field. But not all
players prepare for the game in the same way, or are willing to go
outiside the MLS for information that might benefit their clients. The
MLS is a basic tool in the business, available to any qualified
licensee (and the public at large). I count professional relationships as being almost as
important. I speak and meet with other agents regularly and we share
information that might benefit our clients.

Today I am showing an oceanfront property. I have worked with the
listing agent on other transactions. We have deep mutual respect for
one another. When I asked for the selller's bottom line, he did not
hesitate to share that it might be $300,000 less than the asking
price. His client does not want a public reduction, believing that
wiggle room is needed for negotiating purposes. My buyer is a
no-nonsense builder who hates counter offers, and wants only the
bottom line.

I intend to deliver--and that is why this builder is a repeat client. He knows I am
willing to crawl outside the box to get the information he needs.

John: This information is golden,.

Gena: Sometimes it's fun to stir things up!

Monika: Right place, right time, and right information. I find clients want information THEY CAN'T FIND ON THEIR OWN.

--

Your going to charge for gossip? (only releasing the private info to those whom sign a BBA).

I love it. I have always said that the local "inside info" can never be put on a website.

Roberta: You have opened up some really interesting topics here. It can be a little like playing poker. Just how much of your hand do you disclose, and when. You've got to have a good relationship with the other agents, if your 'pocket listing' has not signed a formal listing agreement.

Roberta- Thank you for the post !! It's like the Real Estate underground.....

Brian: Quid pro quo. Physicians charge for knowledge and expertise. So do attorneys and so do we. And I'm not talking about information that can be found on WebMD, Law.com, Realtor.com or thousands of other real estate websites and blogs. I am talking about information that comes from being a probing and trusted practitioner, a professional who is respected by both clients and peers. You are absolutely right: "local 'inside info' can never be put on a website." Thanks!

Joan: The sharing of pocket listings is done among trusted professionals. So is the sharing of other (usually seller-requested)'off the record' information. I just think we need to be responsible and protective of what we share.

Lauren: With our websites and blogs and internet presence, many of us underestimated the old school power of professional vis a vis sharing of sensitive information. It's just more fun to call it gossip. Moreover, when it comes to local issues, mouth-to-ear revelations can be just as powerful as the internet

Roberta, Good post and timely for me. In Manhattan most buildings are still coops and the requirements for passing a coop board are not published anyplace. Every building is different and not even brokers always know what they are looking for. It's really old school here.

Until this year sale prices in coops were not public information. The standard rule is 25% income to debt ratio and enough assets left over after close to cover 2 years maintenance or 1 year maintenance and mortgage payments. They will never tell a broker or anyone exactly what they require except the amount they allow for financing. Most are 20% down some 25% -30%.

This morning I ran into another broker who lives in my building in the elevator. I've known her for years. She says "Mitchell sell my studio listing on the 9th Floor don't you have anybody"? I said I do have a buyer who it's perfect for but she doesn't have the required 20% downpayment. I'm only showing her condos."

I've lived in the building a long time and have sold apartments in the building. I had to put 20% down. The broker told me they will take 10% down, that she had a sale where they accepted 90% financing. I'm going to show my buyer the apartment and now I know they will make exceptions. Old school information. That fact will never be published anyplace.

Roberta, that anonymous comment below Sharon Simm's was mine. Sorry. I could have sworn I was logged in!

When I have a property I'm going to list, and I tell the sellers I already have a potential buyer - I always advise that they still put the home on the market....see what kind of interest is out there...

Great post Roberta. And I like to be able to provide clients information that they can't get on their own - it's part of the value I bring (I hope).

Hmm, Mitchell. Interesting point but you just shared it in a public blog post, didn't you? I guess chances of someone seeing it are small but...or am I wrong?

Jeff

Well this topic has provoked some interesting information. I do believe that sellers who wish their divorce, pending forclosure, or job loss not to be "plastered across the internet" would have a problem containing the information if it is divulged to anyone at all. Let's say an agent has a deal, is given the information, the deal doesn't go forward, there go those gossips and before you know it everyone knows it. I believe that protecting the seller would be to simply state "they are moving for personal reasons" without exposing stuff that is hurtful because that is the problem with office gossip. I've been in offices and this personal stuff gets out and thrown about. Tell one, tell all. Tell no-one and the seller is truly protected.

Jeff,

Yes right after I posted it I realized that. Im not hiding it, I welcome buyers to contact me to get them an apartment in my building.

good post....lots of debate though. I am on the fence. It can be both a tool and a deteriment. It depends on how it is used.

JAN

2007

I enjoyed your article--some great ideas and some that could be an issue with Realtors who may not be ultra ethical. In a perfect world, I would like to believe that a Realtor would never divulge damaging information about their client. But guess maybe I'm too naive??

JAN

2007

It would seem that one would really want to get INFORMED consent if the information is not share in a timely manner. Often agents don't explain the downside of not getting wide exposure for a property (e.g., the MLS). Also, if the property is only exposed to a few, there could be other possible violations (e.g., discrimination) I think agents should be very careful.

Joan: This is not about withholding pertinent information from MLS or disserving our clients in any way. When I take a listing, the marketing for that property is extensive, intensive and widespread. This information DOES NOT include sensitive or personal information that might embarrass a client. I am speaking of information that cannot or should not be in the public MLS. For example, we have no legal authority to post a pocket listing in our Multiple Listing Service. Nor do I mention divorce or other seller hardship. When sellers are in difficult circumstances, I ask their permission to share this information discreetly with trusted associates.

This is the type of information to which I am referring. It is also the type of information shared between real estate agents who trust one another. For example, I currently have a pocket listing for a 6000 sf commercial space. The owner, a wonderful client, is out of the country and asked his secretary to call me so that I could put out feelers for this prime property. This will remain a pocket listing until he is back in the country and is ready to list.

Finally, how many times have we seen a real estate jewel (eg waterfront property) sell before it even hits the MLS? This frequently happens because some lucky buyer has an agent who who took the time to develop trusted relationships with other real estate professionals. That is the value of "real estate gossip."

Wow an AR Gossip Column, Do we get Ann Landers ( is She still around ). Just kidding all, Great Post though.

MAR

2007

Interesting post Roberta.

I'm curious how prevalent these kinds of transactions are in today's market.

Thanks,

Sean

MAY

2007

Although I have not experienced the seller that makes it known what they want or don't want on the MLS, I feel that if I do encounter that I will handle it at that time by the wishes of the seller -- afterall I am working for them at that point.

There are so many things that can be said and it not be considered slipping away from the confidentiality of the seller, questions are asked and you are expected to have an answer at that point. So you would not have the time to go back to the seller to see if it is OK to answer it with the truth and withhold the information.

This is a tough area to say yeah or nope to. Interesting subject.

MAY

2007

I was under the impressions that "pocket listings" were illegal - not sure if this is national or state.

In my local MLS, listings are mandatory or must be formally excluded for specific periods of time for a specific reason.

On the issue of agent "gossip," I believe this does not serve the client. It's great for the agents and brokers to sell your listing in-house before it hits the MLS (I think this is what you referred to as gossip), BUT it doesn't serve the client because the marketplace can and does drive the final price. If it is never exposed to the market, how do you know it would not attract multiple offers and drive the price up, for the benefit of the client.

I think this is all about agent egos and bragging to the client how fast their property sold, but not explaining the drawbacks of such activity.

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