Double Dipping at the Client’s Expense

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They’re called “pocket listings”, “private listings”, “office exclusives” among others, but they are all the same type of transaction. It’s the typical “I scratch your back, you scratch mine” type of agreement in which, sadly, neither back is yours.

The biggest difference is that these listings are not made available on the Multiple Listings Service, or MLS, a national network of agents, brokers, and other real estate professionals, which nearly 90% of home sellers use to list. Instead, they are either shared exclusively within a particular brokerage firm – in which case that company will have the agents representing both the buyer and seller – or through a special arrangement between the agent and would-be buyers, where that agent inevitably ends up representing both parties.

So why does this matter to you, potential buyers and sellers?

The overwhelming majority of homes listed are on the MLS; choosing not to do so greatly decreases the exposure your listing will get. You will be ignoring an enormous chunk of the market, as real estate agents who represent potential buyers will not be able to point their clients to your listing. Essentially, you’re casting a much, much smaller net.

You may also be leaving money on the table. If a company or agent represents both parties in the home sale, they end up with a full commission, rather than just the buyer or listing agent’s fees. They’ll be lining their pockets through a blatant conflict of interest, not to mention padding their turn-around stats by marketing how quickly they are able to get homes under contract.

Additionally, by privately listing your home for sale to a limited pool of buyers, you’ll surely be getting an inaccurate value assigned to your home. Many agents have a specific buyer already in mind in these situations, therefore there is usually a pre-agreed upon price established that may not represent what your home is actually worth. You’re also eliminating any chance of a bidding war in this hot housing market, which often results in homes going for substantially above asking price.

In today’s high-demand, low-supply housing market, some real estate companies are seeing more buyers looking to homes not listed on the MLS, and they’re taking advantage by keeping their “pocket” club open, leaving the vast majority of dream-home seekers in the dark. It’s worth remembering that the word “exclusive” means just that, it’s excluding people, and in this case a huge number of people.

If you’re looking for a real estate agent that upholds their fiduciary and ethical duty to their clients, consider Maryanne Elsaesser and the Home Navigators Team.

About Maryanne:

Maryanne Elsaesser is known for individualized strategic planning and solving complex matters with calmness. Her clients say she is a "brilliant negotiator," tenacious, helpful, smart, creative, focused and has an amazing ability to read people. Consistent hard work puts Maryanne in the top 1% of brokers in the country. Maryanne is well-versed in contractual elements and understands the intricacies of navigating the most profitable net gain in each transaction. She can be reached at 551.206.9264 or maryanne.elsaesser@gmail.com.

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