HOUSINGNEWS REPORT
THE OFF-MARKET HOUSING MARKET
FORECLOSURE AUCTION SHARE OF TOTAL HOME SALES
FORECLOSURE AUCTION SALES TO THIRD PARTIES
SHARE OF TOTAL SALES
“Of course there may be legitimate reasons why a ‘pocket listing’ could be of benefit to the seller as well as the lister in a particular instance, but the downside must be clearly explained and signed off on by the client.”
200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
ROBERT N. BASS ATTORNEY, PHOENIX, ARIZONA
1.00%
0.00%
2000 2002 2004 2006 2008 2010 2012 2014 2016
Member brokers are generally required to enter homes into the MLS system within two days, but in an environment with little inventory two days can be quite a head start. The two-day standard can be extended if the seller signs a form allowing the broker to opt out of the MLS as well as a waiver which says the benefits of an MLS placement have been explained. As an example, a seller might not want a listing to appear on an MLS or online site for reasons of privacy, security (think of a home with a lot of small, expensive antiques), or until repairs are completed. “I would be very interested to see the actual disclosure/authorization form that licensees present to their sellers in these scenarios,” said Robert N. Bass, a Phoenix-based attorney with a large real estate practice that includes defending real estate professionals in court. “Of course there may be legitimate reasons why a ‘pocket listing’ could be of benefit to the seller as well
as the lister in a particular instance, but the downside must be clearly explained and signed off on by the client. With a “pocket” listing or a “coming soon” approach a broker markets a property to a small group of potential purchasers or maybe a few friendly brokers before entering the property into the MLS or maybe entering it in the MLS only once an offer has been accepted. This may sound fine if the result is a sale, but sellers can pay a substantial price for such marketing. Because the property is seen by only a small pool of potential buyers, the seller may lose the opportunity to get a better price through wider marketing. For individual brokers the use of pocket listings may lead to accusations of discrimination.
of Realtors, explained in 2013 that “if agents limit their listing exposure to only certain sectors of the market, it may have an alleged discriminatory effect (i.e. reinforcing segregated housing patterns) even when there is no intent to discriminate.” (parenthesis hers) Is there a way that “coming soon” transactions could be made more palatable? “Coming soon can be an issue from many fronts,” said Matthew L. Watercutter, principal broker and senior regional vice president with Ohio-based HER Realtors. “The practice is popular in many communities, and in some instances it has a valid purpose, to make people aware this property is soon to be on the market, while the agent and brokerage prepare marketing materials, as well as needed staging, photography etc. which takes time to put together.
Elizabeth Miller-Gadabouts, senior counsel to the California Association
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OCTOBER 2017 | ATTOM DATA SOLUTIONS
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