Will National Association of Realtors (NAR) Ban Pocket Listings?10330
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 WGAN ForumFounder & WGAN-TV Podcast Host Atlanta, Georgia |
DanSmigrod private msg quote post Address this user | |
| Hi All, If you shoot multi-million dollar homes for sale that never get publicly listed on an MLS - a "pocket listing" - how will the National Association of Realtors (NAR) potential ban on pocket listings affect you? ✓ Inman (22 October 2019) Major Midwest MLS throws support behind NAR's pocket listing policy Dan P.S. Receive a $20 credit on your Inman subscription with this WGAN link. |
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bryanhscott private msg quote post Address this user | |
| @DanSmigrod I can't speak to the Inman article, because I am not an Inman subscriber, but pocket listings have been an issue in the real estate agent community for years. There is a longer story about these, but from the perspective of a long-term, licensed real estate broker, the short story for real estate media providers is, "who cares," because it really won't change what the listing agent does to promote the listing, except that they drag their feet posting to the MLS. The fact that Inman is even covering this story probably means that the Midwest MLS in question is experiencing more than just nominal inbound complaints from other agents who have caught the agent in violation. If so, they will complain to the state's real estate commission, then the commission will send out warning advisories to the agent community reminding them of the relevant rules and potential issues that will occur, then the problem will go away, or subside till the next time. BTW - because they are so far removed from the action, long before the NAR gets involved, the issue will have long since been resolved as a result of the complaint/investigation process that occurs at the state commission level. |
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WGAN Forum Founder & WGAN-TV Podcast Host Atlanta, Georgia |
DanSmigrod private msg quote post Address this user | |
| @bryanhscott Thanks for the insight/backstory! Best, Dan |
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 WGANStandard Member Los Angeles |
Home3D private msg quote post Address this user | |
| IMHO pocket listings should be illegal nationwide, as they are in 7 states. But all the national brokerages will fight this tooth and nail. Agents and brokerages want to double/end their deals. They profit more. I heard that Compass is now launching their own web platform for their Agents to post their “off-market” listings. Essentially this is Compass’ private “MLS” and if they succeed in getting buyers to search it, they can decrease the number of buyer commissions which go to non-Compass agents. The real issue is that double ended deals on average work against the seller. Pocketing reduces the number of buyers who know about available properties, and more awareness increases multiple offers which increases sales prices. The most insidious aspect of pocketing is that off-market sales enable sellers and agents to, if they wish, more easily discriminate among buyers. A pocket listing is a secret listing which is known only to those the listing agent chooses to share it with. If the owners of a store or restaurant chose who they told about their products or services, they might end up in court. So why should it be okay for agents to tell only certain people that a home is available for purchase? The NAR should require all properties listed by members to be on the MLS from the first day of any marketing and, on second offense, expel members who don’t. And states need to prohibit “dual agency” outright. Agents should either work for a buyer or a seller, not both, and there is a justifiable argument that the same should be applied to brokerages. |
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bryanhscott private msg quote post Address this user | |
| @Home3D You nailed it! Your characterization is the longer story behind these offending listings and is exactly why pertinent R.E. commission rules exist in most states. Pocket listings and double-dealing agents are a direct violation of the primary duty of any agent, which is "fiduciary," and therefore can't serve the best interests of the seller, or the public at large. The fact that either exist anywhere in the U.S. is not a surprise, but will eventually get sorted out as needed. | ||
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