Notice on my MLS Service
IAR follows the MLS model bylaws, policies and rules from the National Association of REALTORS® (NAR) Handbook on Multiple Listing Policy and more particularly the Model Rules and Regulations for an MLS Operated as a Committee of an Association of REALTORS. Any options selected within the MLS policy will be sent to NAR for their review and approval. The final decision of any Rule,Regulation or Policy is decided upon by the IAR Executive Officer, following the general consensus of a committee made up by IAR Officers. Any information added to the MLS must be verifiable. IAR uses county records to verify information. New listings shall be inputted within 48 hours upon initial listing or advertisement of the listing, and status changes within 24 hours. Once listed in the MLS, listings shall be made available immediately for showings by MLS members.
I am concerned with this last highlighted info., in our area most properties are shown onlyin-house for the 48 hours noted above (this is a Pocket Listings). I interpret these last 2 sentences as 48 hours to enter a listing and to be for the convenience of the company when a listing is taken on Friday or over a holiday. I do not think the 48 hrs is there so that the listing brokerage can take advantage and sell it before it is made available to all buyers - Arms Length Transaction problem and violation of the MLS rules that properties are to be made available to all mls members for showing.
With the low inventory, our area and many areas are experiencing, the properties shown in-house for the first 48 hrs are receiving offers and sellers are accepting offers. This practice gives all Realtors a bad reputation and it is a practice that puts an agent/brokerage's interests ahead of their clients. Which is a violation of the National Code of Ethics. This practice of reducing the demand for an item in very short supply (housing), is probably reducing the sale price and the local property values overall.
I have been trying to address this for a long time now. If you know of or heard of how it can be addressed, is being addressed or stopped please let me know. We are tracking this and printing these listings in our office. I know this practice may be legal (the 48 hr loop hole noted above), but it is not ethical. It is especially costly for a Realtor's seller clients who would not agree to this practice if they understood the negative impact on sale price and in many instances they don't even know the other buyers don't have access to their home. I wonder if E and O would cover a lawsuit where this was done, since it is purposeful negligence.
Our mls had 2 more new ones today, very concerning, but at a total loss as to how to get this under control. I am a top producer and my office does not do this. How sad that a practice so detrimental to most of our sellers will have to be directly addressed by the NAR or law suits to remind REALTORS of their ethical duties to do what is best for their clients.