Comments on: Pocket Listings in Seattle?

By: 7,200 sf lot West of Market Kirkland | Rain City Guide

7,200 sf lot West of Market Kirkland | Rain City Guide — Thu, 05 Feb 2009 17:48:46 +0000

[...] Similar PostsPocket Listings in Seattle? [...]

By: Leanne Finlay

Leanne Finlay — Sun, 29 Jun 2008 23:20:26 +0000

The point against pocket listings is that largely they are held out of a MLS system not at sellers request, but by an agent hoping to sell it himself. That clearly is not in the sellers best interests.

I agree with Ardell’s Craigslist and Zillow points.

By: ARDELL

ARDELL — Sun, 29 Jun 2008 22:18:34 +0000

“I don’t feel that it should be against the MLS rules because the potential seller does not want their house listed. As simple as that.”

True Riley, very true. As long as the agent doesn’t encourage them to think that way in the first place by offering to sell it for 4% instead of 6% IF they don’t put it in the mls. The idea has to emanate from the seller, not the agent.

Also, once the seller makes that decision, helping them to not be in the mls by providing a website for them to do it on, is not usually against a rule, but clearly “frowned upon”.

The simplist way here to have a “pocket listing” is to make it a “make me move” listing on Zillow. In fact why would any agent or blog need to set up a place “for pocket listings” when there is Craig’s List and Zillow?

By: Riley Smith | Realtor Coconut Grove, FL

Riley Smith | Realtor Coconut Grove, FL — Sun, 29 Jun 2008 18:40:58 +0000

Agreed. I am not knocking the MLS either. By far the MLS is the best way to promote a property, at least here in South Florida. And I also believe that it is the best way for a seller to make the most money off his house (more people will view the house which will create more demand and the seller will get paid more). Assuming, of course, that you have a property in demand and that my college economics teacher was correct. But the MLS is also the best way for Realtors to make money because we have access to so many more properties. In the current market, the chances of a realtor finding his own buyer is slim. Therefore, we need the MLS to give our properties maximum exposure.
As far as showing pocket listings, I don’t feel that it should be against the MLS rules because the potential seller does not want their house listed. As simple as that. They know that they could put it on the MLS, but they are choosing not to. Typically, a pocket listing comes about by speaking to someone who doesn’t want to publicly announce that they are moving, doesn’t want the hassle of showing the property all the time or simply thinks of it as a “let’s see” proposition, and “might” be interested in selling it if a realtor could find a buyer. I don’t see any harm in that.
Thank you for the response.
Riley

By: ARDELL

ARDELL — Sun, 29 Jun 2008 02:19:45 +0000

Riley,

Some mls governing bodies are more strict than others. Most have the same rule, but many don’t enforce that rule. This rule is usually not in the ethics section nor is it a law, it is in your mls membership rules. Basically as a member you are supposed to support the mls generally, and not work toward methods that could make the mls defunct, such as a separate website for non-listed property.

The mls is a “you put yours in and I’ll put mine in and we’ll sell each others” agreement. Many don’t understand this. Some will sell everyone else’s that are in the mls, and keep theirs out. That’s not keeping up their end of the bargain. It’s not a place where you choose or choose not to advertise, like Craig’s List. It’s a membership and rule driven body. Even if you don’t have a rule, as a member you have a duty to support it best you can.

Check with your mls office, which in your area is probably the same as the local Board of Realtors. In our area they are not one in the same, but in most they are one in the same, and I’m pretty sure in all of Florida the mls is part of the Board.

When I was in Florida (Lake Mary/Longwood) the problem was that many owners did not have enough to pay a commission, and yet it was not “short” as to lienholders. So there wasn’t much choice. How can you put it in the mls, if you can’t promise the agent showing the property that they can get paid. So sometimes you are limited by the factors involved. First and foremost you have to do what is best for the seller, and maximum exposure via the mls is what is best for the seller most times.

It’s not just about “how can I make some money off this house”. It’s about “how can the seller make the MOST money off this house”. More buyers seeing it is usually what is best for the seller…though not always.

By: Riley Smith | Realtor Coconut Grove, FL

Riley Smith | Realtor Coconut Grove, FL — Sat, 28 Jun 2008 16:02:15 +0000

I am surprised to see such a negative opinion of pocket listings. I would think there would be more demand for service like this. I am a realtor in Miami, and when I have a client who can’t find what they’re looking for, I call up all the top agents and ask for their list of pocket listings. We all have them, why not compile them in some sort of database strictly for realtors?
Have you heard of the foreclosure bus? I even thought of doing a similar thing for pocket listings. Taking a group of people around in a rented luxury limo/bus and showing them what’s available but not on the market. After reading your post and its comments, maybe my idea is unethical and illegal.

By: Mack

Mack — Fri, 27 Jun 2008 22:33:55 +0000

Thanks, Gordon!

By: Gordon

Gordon — Thu, 26 Jun 2008 22:46:00 +0000

Mack — 10 business days is the CBA deadline for listing submission. 10 days to scoop the full fee

By: Mack

Mack — Wed, 25 Jun 2008 22:55:02 +0000

Not necessarily. Properties may only be listed with the NWMLS if there is a co-brokerage fee offered; it is perfectly legal for a seller – licensed or not – to post a “For Sale” sign or enter into a brokerage agreement without offering a co-brokerage fee. Should that be the case, it would be ethical for a Realtor(r) to maintain the signage (and the overgrown grass).

As to whether it’s legal, well, I don’t know; the law states that a licensee must disclose that they have an ownership interest in the property; many seem to think that placing that under “Agent Remarks” and in print advertising suffices. I recently drove by a sign in Shoreline with a tag reading, “Agent is Owner.”

By: Wondering

Wondering — Wed, 25 Jun 2008 19:53:08 +0000

Slightly related question…

Is it ethical for an agent who owns a property to let the MLS listing lapse and leave his / his broker’s For Sale signs up? It’s clearly not an oversight, because it’s been several months now.

This is an attempted flip. Now it’s an eyesore in the neighborhood with grass over 2 feet tall.

(When the property was on the MLS there was no disclosure that it was agent owned.)