Fully exposing your client’s house to the marketplace is almost always in your seller’s best interest. Of course there are exceptions to the rule;
Office Exclusive listings [also known as “pocket listingsâ€] are a way to accommodate the desires of sellers who wish to exclude the listing from the MLS; they are intended to accommodate unusual circumstances, not as a “standard operating procedureâ€.
There are certain circumstances when a seller, or a seller’s family, or other situation, may not be prepared to endure the process involved in preparing a home for sale. The rigors of getting a house market-ready may not be appropriate in these cases, but these are “unusual circumstancesâ€, not usually involving individuals who wish to maximize their sales price. They are perhaps more interested in the “convenience†of a sale than the full financial outcome; as a result when this happens, they should clearly understand that money is likely to be left on the table.
It is not just my personal preference or opinion that full exposure is best for our sellers. Recently, on March 8, 2016, our local Realtor Association put out a memo to its members denouncing certain practices that do not allow a listing to be offered to the public in a manner that is consistent with standards of practice in the real estate profession. It was extremely well worded, and a strong reminder to all of us about the importance of following standards of practice when presenting properties for sale to the public.
As the seller’s representative, it is the responsibility of the listing agent to maximize the exposure of the listing and to treat all buyer agents and potential buyer clients and customers honestly. (Code of Ethics, Article 1) Obviously, entering the listing into MLS in a timely manner is the most efficient and effective way to gain maximum exposure for the listing.
As real estate professionals, it is our obligation to explain why greater exposure is generally better for our sellers. Doing anything less than educating our clients about the pros and cons of making certain decisions is, at a minimum, a disservice to the people we are suppose to be helping. It also negates the opportunity to offer a property to as many buyers as possible, and to assure the best sale at or above list price, depending on market conditions of course. It further brings into question a Realtor’s code of ethics, as well as possible violations of Fair Housing law.
If an agent limits showings to a specific group of buyers and/or agents, the agent can potentially run afoul of Fair Housing law, Agency law, and MLS Rules/Regulations.
It leads me to question a sales agent’s motivation and character when selling a home in this manner.
The Preamble to the Code of Ethics offers a succinct rule of thumb: “The term REALTOR® has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal.” Â
Our team has adopted a formula for ensuring a property’s exposure to the public. By establishing in our timeline for marketing a property a date and time that purchase offers will be reviewed.
When you anticipate multiple offers due to a property’s location or price, you may want to suggest to your sellers that a specific date/time be established for contract review and communicate this through the MLS so all agents are aware of this timing.
The expectation is crystal clear for all parties interested in one of our listings, and we see more and more agents doing the same thing! This strategy ensures that everyone interested in the home will have the same opportunity to see it, it eliminates the need for hurried, rash decisions that often lead to regret, and almost always allows for the best purchase offer to be put forward. The result is typically the highest and best price in a timely manner, and the likelihood that the sale will end successfully, at settlement, to people who truly love and want the home. Â This is a win-win for all parties involved in the transaction.
We have a duty, a responsibility, and a moral obligation to perform our tasks as Realtors in a certain manner. Full exposure of our listings is one of those obligations. Not only does it benefit our clients, but it most assuredly benefits us as a profession. If we wish to be taken seriously as competent and fair-minded professionals, with high ideals and impeccable moral conduct, then we should always put our clients’ needs and benefit first. Success will surely follow these actions!
All excerpts are from Laura Lafayette, CEO, Central Virginia Regional MLS, in a memo to CVR/MLS Member Realtors dated 8 March 2016.
John VanderSyde, RA, Realtor, Associate Broker
April 6, 2016
OCTOBERFEST 2016! Men, Join Us for St. Bridget’s 17th Annual Octoberfest!
A Richmond, Virginia neighborhood can be every bit as important as the dwelling itself – at least according those of us polled.
