Not using the MLS to ensure Dual Agency. :o

By
Real Estate Agent with Keller Williams Realty, Santa Cruz, CA.

As it gets more difficult for agents to make ends meet, I am hearing more and more in the Santa Cruz County market about property owners being told by agents that not putting their property on the MLS for the first so many weeks of the listing is beneficial to the homeowner. One local company has recently adopted this as their marketing thrust. This ill advised concept is presented as an "exclusive" or a "private offering" rather than what is really is... as an opportunity for one agent to make 2 commissions with neither the buyer nor the seller receiving the representation that they deserve. When this occurs, neither side has an agent who is negotiating what is best for them.

Sellers and buyers are being told that they can "save money by letting the listing agent represent both sides of the transaction." NOT true and NOT in the best interest of the buyer or seller. The only person who gains from the dual agency is the listing agent and his or her broker.  A buyer saves zero as a result of  the small percentage that a listing agent is willing to take off his/her commission in order to "write the deal" for both sides (since commission is paid by the seller). A seller can net far more plus receive more favorable terms when represented by an agent who is an effective negotiator as opposed to the seller giving up their right to have their agent negotiate exclusively on their behalf and only in their best interest. 

The seller's best bet at getting the highest and best price and most favorable terms for their property is to offer the property on the MLS (Multiple Listing Service) therefore exposing the property to every licensed agent in the market area and offering those buyer's agents a commission to represent the buyer. This element in the marketing of the property is critical and time sensitive. As such, verbiage is incorporated into the contract written by the California Association of Realtors emphasizing the value of having a property on the MLS and the risk associated with not doing so.  The MLS exposes a Santa Cruz County property to buyer's agents and buyers in five counties.  No other real estate marketing provides such a widespread audience and all of the most widely used real estate web sites require a MLS # in order to market a home on those sites.

The most critical weeks to the success of a listing are the first few weeks. Studies have shown for years that the first few weeks are when a listing gets the most attention. So in those first 3 weeks all of the key elements to success must be in place, including MLS mass exposure.  To ensure success, a listing agent must also have the cooperation of the seller to offer a fair market price, feature the home through professional photography (which draws the maximum number of buyers to the property) and must provide a comprehensive marketing plan that reaches every set of eyes that are in the market for such a property.

Many agents will respond to this blog saying that "in certain circumstances it is OK if the buyer and seller already have a meeting of the minds and just need someone to write the deal." I disagree, if both sides has representation, a far different meeting of the minds would occur and the person represented by a skilled, full time, professional negotiator would not get the short end of the stick.   I welcome any and all comments from those for or against one Realtor double ending a transaction.

Posted by

 

Melody Russell

831-332-3975

Keller Williams Realty

1414 Soquel Ave. Ste.100, Santa Cruz, CA 95062

www.MelodyRussell.com 

831-471-9129

DRE#01743923

Together we accomplish more.

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Topic:
ActiveRain Community
Location:
California Santa Cruz County
Groups:
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Rainmaker
155,521
Carolyn Kolba
Keller Williams Realty- Mentor, Ohio
Serving Mentor, and all of Lake County, Ohio

Melody:  I'd love to read this blog post... but it being presented in one big gigundo paragraph without any breaks makes is so hard for my older eyes to read.

What these agents are doing is so wrong.  This is NOT what I call working for the seller.

May 06, 2011 11:54 PM
Rainer
82,142
Melody Russell
Ranked as 1 of TOP 3 Santa Cruz County Realtors.
Keller Williams Realty, Santa Cruz, CA.

Thank you for your comment. I'm glad you were the first to comment and for bringing to my attention that I needed to break up that big lumpy paragraph a bit. Wishing you a prosperous 2011!

May 07, 2011 12:02 AM
Rainmaker
481,374
Rob D. Shepherd
Principal Broker ABR, GRI
Coldwell Banker Coast

I am not a fan of double ending. Divorce attorneys don't represent both sides, so why should we?

May 07, 2011 01:02 AM
Rainer
201,366
Gwen Kelly
(562) 857-4936, Long Beach, CA Real Estate
Broadmoor Realty, Inc

The practice of not putting their property on the MLS for the first so many weeks of the listing is beneficial soley to the listing agent.  They are basically using the other parties, not representing them.

May 07, 2011 01:22 AM
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Rainer
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Melody Russell

Ranked as 1 of TOP 3 Santa Cruz County Realtors.
Contact The Melody Russell Team.
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