Update 7-23: rebuttal post that basically says I suck by Carla Muss-Jacobs. Click here. But to those that read that post, this has nothing to do with sellers that decide they NEVER want to list on the NWMLS. It has to do with marketing BEFORE it hits the NWMLS, which appears to be a strict violation.
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
Update 7-22 11pm Inman News did a story on my PreMLS.com service.
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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
Update 7-22 1pm NVAR banned/rejected this ad that I wanted to run in the local association magazine. Meanwhile they sell "Coming Soon" riders in the Realtor shop.
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