I think I may have the answer as to why some listings in our area are so difficult, if not impossible, to obtain showing request confirmation let alone a return phone call back from some agents.
A few weeks ago I was contacted by a home owner in my area to put their home on the market. (No specific area will be noted here nor names to protect their privacy.)
I spent hours doing research on their specific neighborhood, the last 90 days of market activity as well as preparing for talking to them about their options should a short sale of their home be needed. (Referring them to another agent who is knowledgable in short sales)
After I arrived at their home they were quite clear in what they wanted me to do for them: Put their home in the MLS, and nothing else. No marketing, no showings by any potential buyers and their agents, no counseling as to the market value of their home, nothing.
They needed their home to be on the market while they were trying for a loan modification from their lender in order to show this lender that they were doing everything possible to help themselves in this difficult economic time.
I was stunned. They wanted a professional real estate agent to do nothing but put their home in the MLS so that they could have a printout to send to their negotiator to help their loan modification process.
Perhaps I'm an idiot, but I passed on the opportunity to have my sign on their front lawn. (They did want a sign in case someone from the lender came by to check and make sure the house was not vacant.)
I politely explained what I do, why I do it, and how my broker gets paid for the work that we do. I also told them that it was my reputation (and my brokers) that would be on that lawn sign and that I could not be a party to the frustration of buyers and their agents when they called to set up a showing only to be denied over and over and over again.
I did leave them the market analysis that I prepared for them, so that they could have accurate information for their loan negotiator regarding the current market value for their home. But I could not do what they wanted me to do: List their home for sale without it really being for sale.
It makes me wonder about all the times I tried to set an appointment for one of my buyer clients to view a listing and cannot recieve confirmation.
Perhaps the home really isn't for sale?
Kris Wales a Macomb County MI real estate agent
Christine, Exactly. I don't believe they knew the ramifications of it from a real estate professionals perspective. I felt sorry for them and their financial situation. I can only imagine how hard it has been for them trying to deal with the negotatior.
Terry, It hasn't come on the market (yet) and it's been a few weeks. I'm hoping they just sent in my market analysis to the negotiator and decided that listing it wasn't the thing to do.
Susan, Wow. That sounds like much of the same "No showings". I wonder if they were trying to negotiate something with their lender? You're absolutely right. The frustration from other agents and their buyers certainly isn't worth it.
Michael, It's desperate times here. I felt sorry for them, but hopefully they understand now how this just isn't right.
OK went out to dinner last night and was talking about this post to someone who is originally from Detroit MI...
#1 I know now how to pronounce Macomb County now... who knew it was NOT May-Comb?
#2 Would people instinctively know to do this? Rope in a REALTOR®? to make it look as if the house was on the market? Or are they told to do this?
I bet they never offered to pay you anything for the service? This cloud's our MLS with homes that that our buyers don't have a chance at. That is disturbing.
Kris,
I've encountered the same. Also have had folks want me to list as a way-overpriced short sale so that they get no offers but can stay in the home longer because the bank is willing to do the short sale.
Just like you, I can't have my ethics and reputation questioned. You will see this home listed soon by a different agent...
Unbelievable. You would think that people would have better sense than that. I guess not. Good for you for not going along with that scheme.
ugh....I hope this never comes to my area. This career has become increasingly difficult this year. It will be nice when things level out in a couple of years.
That is just plain rude, thoughtless, and selfish of them, Kris.
I wonder if there is a little bit of good news as to the bigger picture, though...perhaps areas with high inventory may not REALLY have such high inventory, and the market will rebound a little quicker after the lenders have caught up with all of their loan mods and deeds in lieu?
Kris, this is an extreme case of the same kind of issues I have with today's listings. I would say more than half are listed above market value with no ability of the seller to sell it at market value. I present an offer and their counter is: "This is as low as my seller can afford to go". Now what are we supposed to do? The result is much time wasted as we show house after house and make offer after offer before finding a seller who is truly able to sell. Great post!
We all handle these thing differently. I have never been asked to do what you described. Since loan mods rarely work out, why bother. I wouldn't have done it either.
Kris...
I just read another blog post on AR discussing this topic. According to the blogger the seller's already accepted an offer. It appears the offer was a 'just in case type' scenario. Obviously, situations like this will get worse before they get better. I envision lawsuits and commission disputes.
TLW...ROAR!
Maureen, So, you learned how to say Muh-Comb :-) I don't know that these particular home owners instinctively knew what to ask for. My impression (just a gut impression) was that perhaps the negotiatior asked if they were doing everything that could be done to mitigate any loss to the lender or perhaps someone else (another professional?) mentioned it may help. ::shrugs:: I didn't think about asking them why they would ask for this to be done.
Laura, Of course not. They would have signed a listing agreement with brokers fee on it, but with no chance of showing it let alone selling it there would be no pay. Shame on us for giving the impression to consumers that we will work for free. Somehow they got this in their heads...(some consumers, thankfully not all.)
Irene, It's sounding like this isn't a local (to me) occurance. Many agents from all over the country are stating they are seeing some of the same shenanigans.
Erica, I didn't even think of that, and wouldn't have done it without at least being able to have the home shown and have them consider any offer seriously.
William, On one hand I can't blame people who are stressed financially to try and find a way out, but on the other hand I cannot and will not jeopardize my reputation (or my brokers) for this type of thing.
Damon, The levelling out cannot come too soon in my opinion. Please let it happen soon...
Amy, I hope things work out as you envision. I am thinking that some of the short sales we're seeing now might not be *really* for sale after all. Could be less inventory now that I think about it.
Diane, Doesn't it make you just want to bang your head against the desk? Unrealistic sellers are cluttering the market and making it so difficult for those who really do want and need to sell. Just take them off the market until it recovers.
Joe, That was a first time for me, and I'm still a bit befuddled that it even happened. Glad to hear you wouldn't have taken the false listing either.
Billie, I just finished reading the blog article you mentioned. Holy Cow! I hope the buyers do seek legal advice and really do something about this. It is unforgiveable.
Kris: We're seeing this all the time in Colorado. There are even several Real Estate Agents who somehow advertise their business in this matter and collect a fee for putting listings in the MLS as "entry only" with a note to contact the home owner. Carrie
MLS only programs are one thing. Not really wanting to sell your home listed is another. I guess that must explain the FSBO in MLS offering 1$ to sell his home that never even returned my call when I asked to show it and about the commission. Maybe that needs to be reported, Can't be legal in MLS rules....
If a property is listed in the MLS, it is supposed to be available and ready to show. I've seen this in our area with out of the area agents who never answer the phone and of course you can't access. I report it every time I see it nothing seems to happen.
Kris,
What I don't understand is why you left the market analysis with them. Couldn't it tie you to potentially fraudulent activity?
Carrie and Kathy, When you call the sellers to view the homes are you able to do so?
Kathy, FSBO's are allowed to place their homes for sale in your MLS? Do they propagate to Realtor.com and other portals?
Carol, I agree. If you're in the MLS you should be able to set an appointment to view them for your buyer clients. It's so frustrating for all those involved who can't.
Joseph, We do competetive market analysis for homeowners all the time. If they decide to give my CMA to their lender to show that the market value has plunged then that's ok. Or perhaps it will help them to make an educated decision as to whether to list their home for real and try to obtain a short sale on their home. There is nothing fraudulant about that. Now, if I see their home come on the market in the MLS and cannot make an appointment to view it I will call our MLS and report it.
Carrie, Yes, it is quite legal for FSBO's to pay a small fee to get in the MLS. Many brokers include this program as a Non-rep, MLS Only program. These homes do go out to the other portals just like any listing. It concerns me that listings such as the one above, offering $1 to sell it and not returning calls to show it, is pushing the envelope a little bit. After reading your blog, it hit home that that was possibly what this seller was doing. Thanks for the heads up.
Kathy, Thank YOU for the heads up. It's always interesting to hear how the various MLS services work around the country.
I think I'd wonder about that too. Definitely they were asking you to do something not quite right. You were right to decline.
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