Home Buying in San Clemente>Question Details

nmaz34, Other/Just Looking in San Clemente, CA

why would a Realtor NOT list a house property on the MLS?

Asked by nmaz34, San Clemente, CA Mon Apr 22, 2013

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I have to agree with Beach Broker Bill and Bob! Most likely it is so they agent can as the industry calls it, 'Double End' their listing and get paid twice as much. This is really a bad practice to get into. Not so much because it keeps others (other Realtors) from selling the home but because it keeps the compitition out of the picture. And that can be very bad for the seller. If the seller has 20 offers to choose from, the price will most likely be as high as it can be, and net the owner the greatest profit. If the agent just takes one or two offers that he got from open house or ads then the compition is not there to drive the price for the seller. And the buyers will not make their best offer if they no there is no compitition.
Really wrong to do to the owners!
But in all fairness there are sellers that just want to stay out of MLS, sometimes.

Connie Bramble
Prudential CA Realty
714-337-8718
dre# 898302
3 votes Thank Flag Link Mon Apr 22, 2013
Responses below are legitimate reasons, BUT maybe I am the jaded one of the lot as what I see is that it is to attract buyers that they, the listing agent can try to convert to additional sales. As buyer, you can pretty much only go through that agent without it being on the MLS. These listing agents seem to be slow getting back to buyer's agents in these situations. Sorry for the generalizations and stereotypes, but there is truth in them.

I have seen riders on yard signs that say, "Pre MLS sale." In some cases, the seller is not ready to have people coming through their house. But in the end, outside of the explanation which is at the direction of the seller, what you are seeing is a listing agent trying to leverage that listing into additional sales for themself. REO agents were notorious for this.

I think the privacy consideration is more often addressed by not having a yard sign. Limiting exposure of a home for sale by not going to the MLS in most cases is to the detriment of the seller if an offer is accepted prior to going live on the MLS. Exposure is the name of the game.

This leads into a whole other debate about dual agency and all I will say is buyer beware....

Good Luck and make sure you have buyer representation to look after your best interests, because the listing agent sure won't.

BeachBrokerBill
DRE 01775528
3 votes Thank Flag Link Mon Apr 22, 2013
I'm with BeachBrokerBill on this one. In this extreme seller's market, greedy listing agents will do anything they can to drag their feet on putting a listing into the MLS, where they'll probably have to share the sale with another agent.

If they are called on this practice, by potential buyer's agents, they'll just "mysteriously" produce a form "allegedly" signed by the seller. ( Whose signature no one has actually seen.)

This is a sign of the market, and I've seen it every time we've had a seller's market - quite a few times over my 36+ years in this area.

The good news for buyers and buyer's agent? This phase will pass, and Karma will come out in force.
1 vote Thank Flag Link Mon Apr 22, 2013
Agents are advertising a home without listing it so they can double end the deal. It is sneaky, and underhanded. The seller (client). Should be demanding it be listed so that it gets proper exposure. The market is so hot in some places that simply putting a sign in the ground gets offers. Thus, the double end, which is a dis-service to the seller
0 votes Thank Flag Link Sat May 18, 2013
The list that agent look to to find properties for their buyer clients/customers is the MLS. So if a home owner is serious about selling, he/she/they need to get their home on the list, the MLS.

There's NO GOOD reason not to be on the MLS.

http://gettingthebestprice.com/

fred
0 votes Thank Flag Link Fri May 17, 2013
The only good reason to NOT list a house in the MLS is because the seller has specifically asked you NOT to. Exposure and marketing is what brings the most buyers to a property and the most buyers is what brings the best price. But there are some circumstances where the seller would prefer that the Realtor try to market and sell the property without it being listed in the MLS. They are rare but they do exist.
0 votes Thank Flag Link Fri May 17, 2013
As we all know that listings are the largest marketing feature that we have as Realtors and that we have to have the properties to last in real estate. The best way for us to obtain more listings is by getting our sellers the best price in the shortest period of time. The best way to do this is by offering it to the largest audience which is on the MLS who distributes it to the other agents and internet sources. Serious buyers that want the best opportunity to find that right home will already be working with an agent and to eliminate these buyers is to do a disservice to our sellers.
There are certain situations for example, like when taking a listing for a short sale and giving the seller a short period of time to gather all their documents. Every seller is different and their needs are also different, however it is our job to educate them as to the benefits and drawbacks and then either put their needs first or don't take the listing. Most of us have taken overpriced listings with or without setting the seller's expectations as to how long it will take to sell that property. Every house that comes on the market is different because the people that are involved create the dynamics so there is no one size fits all. Our market is also always changing and we have to change and grow with it. People still need our help to obtain their personal financial goals when they buy or sell their house.
0 votes Thank Flag Link Sun Apr 28, 2013
But the question is why would a REALTOR not list the house on the MLS. If it was an issue of a frugal seller, they just make the CBB% 0. Or the seller does a list only listing.

While Mack's point is "How are we supposed to know, ask the source," the likelihood of getting a genuine answer from the listing agent is not high. Part of the basis of some of these answers is that agents follow the rules and/or a code of ethics. Unfortunately, that is not always the case.

Agents are in the RE business for many reasons. For me it is to provide buyers and sellers with insightful expertise that helps them make informed decisions regarding real estate. Providing my clients with quality and value is always foremost in my mind and is what I really enjoy. There is a perspective out there to be in the business to make as much money as possible. This spectrum runs from mild to extreme. On the extreme, I know agents who will do whatever it takes and cross whatever line to achieve that goal. Many of these types are empty souls with big bank accounts.

Just to show a balanced perspective, I know sellers who are as Allan describes. I personally do my best to avoid both corrupted agents and close minded sellers...because there are too many other great people in the world to help and with which to work. I find the latter group to be much more enjoyable to be around.

in the end, everyone finds the property that was meant for them. So really, none of this matters in the bigger picture.
0 votes Thank Flag Link Tue Apr 23, 2013
I have had a seller that wanted to test the waters without people coming in all the time to see their place. The seller thinks that this is better for them an I find a buyer, which is not a good thing to do. The seller will not get the best price for their home this way. I believe in marketing a home in the MLS and that is what is best for the seller
Some sellers think they know what's best. Majority of the time or most all the time the sellers is incorrect. Realtors know what is best and they are the ones working out in the public/ business full time.
It's the agents fidicary duty to the seller to get the best possible offer for the seller.
Yes, there are some agents that do this practice for personal gain. I have run across a few of them
REOagents can lose their account trying to bring in both sides. I have seen an agent lose a couple REO accounts this way and no longer works in our company for her decisions to do this
Must be looking out for the best interest of the seller to get the best possible offer. That's it

Ingrid Ski Realtor
949-874-0432
OCAreaHomes@gmail.com
0 votes Thank Flag Link Tue Apr 23, 2013
To further elaborate on Mack's answer, most Sellers like that are generally overpriced, downright frugal or what I have found is they "seem" to know more about Real Estate than all Realtors®.
0 votes Thank Flag Link Mon Apr 22, 2013
Why don't you ask THEM, nmaz?

We can't list a property unless a seller gives us written authorization to do so. Chances are, they've told a half-dozen other agents "if you bring me a buyer, I might sell - and of course, you'd get a commission."

But we don't know why people that we don't know do the things that they do. In these cases, best to consult the target directly.

All the best,
0 votes Thank Flag Link Mon Apr 22, 2013
We generally list all our listings on MLS along with all other marketing outlets to get maximum exposure but several times this year we have had sellers not wanting the home shown (privacy issues). We have bought several homes directly from the seller but we have disclosed clearly that the seller is often leaving money on the table. The sellers have full knowledge but still, they value their privacy more than the money they left on the table. Again, this only happened three times this year for us. The absolute majority of the listings we end up putting on MLS and generate incredible demand for the seller to achieve top dollar.
0 votes Thank Flag Link Mon Apr 22, 2013
Hello nmaz34,

A real estate agent will not list a home on the MLS due to a seller's wishes. I hope this helps.
0 votes Thank Flag Link Mon Apr 22, 2013
Sometimes a seller may ask a Realtor to not put it on the MLS. There is actually a form that they sign to do so. Seller may only want to sell the home under specific conditions such as if they find a replacement property or get a willing buyer to pay a price that they would consider. There are various reasons. Realtors aren't suppose to do it for their own gains, such as to find a buyer themselves.
0 votes Thank Flag Link Mon Apr 22, 2013
Realtors do not make that decision - the Seller / Owner does. Most Associations / MLS' including the ones that cover Southern CA require entrance into the MLS within a few days unless the SELLER has specifically opted out - and then - a form has to be signed by the seller and sent to the local Association and the MLS.
0 votes Thank Flag Link Mon Apr 22, 2013
The seller may not want to pay the fee to pay another agent so the owner requests to not put it in the MLS or the agent has talk the owner into holding it off the MLS for a certain amount of time for the agent to advertise and get paid for both sides of the deal. Or it is a property management company that doesn't charge the owner for procuring a new tenant so they are not using the MLS.
0 votes Thank Flag Link Mon Apr 22, 2013
Hello,

There are a few reasons that come to mind for why a Realtor may not list a property on the MLS: 1) they may be following instructions from the homeowner who has stated that they do not want the property listed on the MLS, 2) they may advertise the property through other means that the homeowner has agreed to, and 3) they may have taken the listing but there is a delay in listing the property on the MLS because the property is not yet ready to be shown perhaps due to renovations or waiting for a tenant to move out.

Please let me know if you are interested in finding out more about properties that are for sale.

With Warmest Regards,

Birgit O'Hearn, Realtor
e: birgit.homesales@gmail.com
w: birgitohearn.kwrealty.com
c: (949)463-7955
Keller Williams Realty
DRE# 01886700
0 votes Thank Flag Link Mon Apr 22, 2013
If seller rather for privacy not to have it featured on the MLS.
0 votes Thank Flag Link Mon Apr 22, 2013
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