Has NWMLS gone too far banning "Coming Soons"?
I'm going to wager that the NWMLS is smarter than a lot of people, including agents, their own members, and even Esq'es.
The NWMLS, as most all multimple listing services, is a Member Organization and apparently they have rules when it comes to their members.
The whole point about a MLS (multiple LISTING service) is . . . hmmmmmmmmmmm . . . the LISTINGS!
Why bother being a "Member" to a LISTING SERVICE if you don't want to LIST THE FREAKING PROPERTY! OR . . . if you only want to LIST property when it suits your own self-interests, goals, etc. Home owners RARELY understand the rules of the MEMBERSHIP to a LISTING SERVICE . . . so I would say that some members may bend those rules without their principals' knowledge. Did I just say that?!? Apparently, I did.
The re-blog is because I'm so tried of trying to edu-ma-cate people. The article is a non sequitor, much ado about nothing IMHO. If the owner doesn't want to put their property in the MLS they sign a statement instructing their agent to exclude. Period. End of story.
The rules are: "blah, blah, blah, no advertising, blah, blah, blah unless a listing for that property has been delivered to NWMLS, or input by the member
Notice the "OR" ". . . or input by the member". That's a word. And it's inserted into the body of the rules as an ALTERNATIVE. Members of the NWMLS DO NOT HAVE TO INPUT the listing, then can delivery the listing to the NWMLS.
The owner -- remember them?!? -- always has the right to exclude their property from the MLS, but the listing still needs to be delivered to the NWMLS.
So the listing IS delivered to the NWMLS with instructions to exclude. With the owner's instructions to exclude, the listing is NOT input by the member and the listing is delievered to the NWMLS. With that, the property can be marketed any way the MEMBER of the NWMLS wants AND in accordance to their (I'm assuming) instructions/agreement with the owner.
I have no idea what this guy's point is . . . what exactly?????
And from my read on the Numbered "Naysayer" . . . if I'm not reading it wrong, but the property WAS listed and was going to have an advertised Open House. Buyer wanted to buy the place and coughed up $20,000 more to seal the deal.
Again it's called a LISTING service . . . 'cause that's what they do.
If you don't want to LIST property FOR SALE to members of the multiple listing service of your area/market . . . don't.
If you do want to LIST property FOR SALE to memeber of the multiple listing sercice of your arean/market . . . follow the membership rules -- but PLEASE understand them and try not to spin it all out of control . . . GEEZ.
Members of the LISTING SERVICE shouldn't have it BOTH WAYS!
When the market is HOT . . . pocket list, pre-market, blah, blah, blah
When the market is SOFT . . . then advertise in the MLS.
OH PLEASE . . .
Update 7-22 4pm: If you are interested in helping me start a PreMLS.com group (virtual coming soon group for agents only, like the 1200 in Virginia) in your area, start by Facebook friending me at www.Facebook.com/FrankLLosa
The NWMLS in Seattle Wa, appears to be the most strict MLS in the country with rules that appear to forbid all "Coming Soon" or premarket advertising.
"No Promotion/Advertising When Listing Not Published: Members shall not promote or advertise any property in any manner whatsoever, including, but not limited to yard or other signs, flyers, websites, e-mails, texts, mailers, magazines, newspapers, open houses, previews, showings, and tours, unless a listing for that property has been delivered to NWMLS, or input by the member." (emphasis added) Source
Wow! Can anybody help me understand what happened in Seattle to make them throw down the gauntlet?
Banned Scenario: A dumpy homes hits the MLS in a hot area. A seller down the street wants to sell their home, but it isn't ready for the MLS because it needs staging, photos etc. Apparently (please correct me if I am wrong), if the seller signs a listing agreement, the agent can NOT post a "Coming Soon" sign out front to let potential buyers know that the dumpy house is not the only option out there. We aren't talking about premls showings, or premls offers, or pocket listings (where the agent is trying to get both sides).
I get that "Pocket Listings" (which I define as a home sold by the same agent or the same firm, before the MLS, and not just every home that sells before the mls) might have been a problem. But to ban commerce and ban ways agents do business that might benefit their clients, just because some agents might do wrong or frowned upon tactics, seems like they have gone overboard. I guess it is like the gun debate, do you regulate guns or regulate the people using them.
And couldn't this have DOJ implications? I can easily envision an agent offering a LOWER commission if they are able to get the client a great price via premls marketing. However this rule will keep commissions propped up. Limiting consumer options and business models, is not good in my opinion.
The other amazing thing is that the long time customary fireside chat office meetings can no longer end with the "ok everyone, stand up and brag about the listings you have coming up."
Why do I care, all the way from Virginia about what Seattle is doing.
1) I fear that other MLSes might see this as the way to go
2) I started a service called PreMLS.com that took the best part of the Tuesday morning meetings, the "Coming soon" announcements and put it online so that any agent, in any firm, can have access to the same information.
Here are some common arguements and my response
Naysayer Comment 1: Sellers will net more with maximum exposure and that is what they must get.
Response: Have you ever sold a home before an Open House? Got a crazyhigh offer to sell it immediately. We did. We got an offer $20k over list, no appraisal contingency, IF and only IF we sold it before the open. The agent scurried to shop the offer around and see if there was any other interest, or rumblings/interest from agents. NONE. We sold it! Did 100% of the buyer pool see it? Probably not. If we waited to let 95-100% see it, it was our professional opinion that the offer would come in $30k lower and there was a good chance of no other offers. Would you risk $30k for your client to make sure more people saw it? Exactly! It isn't YOUR risk, it is THEIR risk and decision based on our analysis of the situation.
Naysayer Comment 2: Using Premarketing to sell your home before it hits the MLS is always bad for the seller.Response: See above, but one HUGE assumption is being made. That "Pre marketing" (before it hits the MLS) means that you must show the home and or accept offers. This is wrong. A listing agent can use the PreMLS.com marketing to let 1,000 agents "Mark Your Calendars" to get their clients ready, approved, available for when it hits. How is selling a home in 3 or 4 days going to get you maximum exposure? It isn't. Allowing 1000 agents to have a heads up, that INCREASES exposure.
Naysayer Comment 3: Restricting pre-marketing is meant to level the playing field amongst agents.
Response: Give me a break, every class the local association has, and tries to sell us tools, are all designed to make the agent BETTER than the next agent. What are we going to ban blogging? Too unfair of an advantage?
Naysayer Comment 4: It is bad for the industry, imagine having to look in multiple places for homes.
Response: This is one thing that I don't debate. Not because it is rioght, but because NAR is not my client. My fiduciary duty is to my client, not to NAR. If this helps my client, either a buyer or seller, then that is all that matters to me.
I have reached out to multiple persons at NWMLS, but have yet to get a response or clarification on the new rule. Please share this post so others can chime in and potentially result in clarificaiton from NWMLS.
Agents! Please add your comments, either for or against this policy. Thanks
Written by
Frank Borges LL0SA Esq.
Broker Frankly Real Estate Inc VA DC MD
Founder PreMLS.com Know Before. The #1 agent-only network of agents announcing coming soon homes.
Inman News, Innovator of the Year 2009
Update 7-22 4pm: If you are interested in helping me start a PreMLS.com group (virtual coming soon group for agents only, like the 1200 in Virginia) in your area, start by Facebook friending me at www.Facebook.com/FrankLLosa
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