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Asked by Jennifer Kretschmer, AIA, 95124 Sat Jan 5, 2008

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Answers

20
Tman, , 30642
Mon Jan 7, 2008
Good morning Jennifer,

Don't ever be timid about any offer - ever .. and don't let any realtor make you feel bad about a lower offer.

If I'm reading this correctly, it sounds like the typical realtor that has bought another house and he's running it "Exclusive" because he's too cheap to split the commission.

If you've done your homework and you know and feel it's 20% higher than the market value, than it probably is .... I would start 22/25% back of asking, with *you* sitting at the table -- and don't be afraid of any reaction, thats why the good lord has made counter offers .l.o.l..

There's 3 prices when you go to sell anything:

1. "asking"

2. "liking"

3.) "taking"

He'd love to get the "asking" price (don't we all!) .. but in his mind he might take the "liking" price after just a few counters ... and it might take 2/3 days of counters on both sides to get to the right "taking" price .... or, the house might be fresh on the market and you have a seller that needs an education, remember you drew first blood and you can bet he'll get his feelings hurt -- but you're not there for his feelings, you're there to buy his house.

Sometimes new sellers get stupid, especially realtors ... in our last purchase we had boiled it down to 3 houses, the 1st choice was a home owned and being sold by a famous realtor via FSBO (don't you just love it!) I made the offer and he laughed ....

I was told he had a buyer that would give him much more than my offer ... my question was, where is the offer and does he know for certain the buyer is approved or can qualify: "immediately" .. his response was - "this person owns many homes" .. and my question again: does he know for certain the buyer can qualify "immediately" or can write a check for it right now - again "this person owns many homes" --- he had nothing.!

It's been 14 months and he still owns that house ... in the meantime, we moved on 14 minutes later and bought choice #2 that ended up being superb purchase and a better location for less money, he did us a great favor.


;^)
3 votes
Tman, , 30642
Sun Jan 6, 2008
Exclusive means:

You have one egomaniac that "might" - "maybe" - "could" sell your home, but no one else knows about it because it's a big secret ... it also means if buyers come into town from Kansas, Spain or Tibet and they happen to be with an agent 3 miles away they'll never know about your little patch of paradise ....

Exclusive also means: excluded off the MLS ..... I can't tell you how many homes in the last 20 years I've either found myself, or we drove down the wrong street with a realtor, or some guy at the golf course had some fancy flier - that's all well and fine if that's what I was looking for .... but you as a seller (or buyer) dosen't' want your home found by a mistake, or by some lost traveler or by some wind blown parcel of paper ... you want *as much* coverage as humanly possible.... you want the guy from Tibet (well, maybe not).

Exclusive also means: I'll put you in this beautiful 4 page slick coated fancy smancy "come to Jesus" expensive binder book and I'll hand out probably 7 of them, maybe 10 ....

Exclusive also means: you might be sitting on that bad boy for the next 8/9 months.



Good luck.! ;^)
3 votes
J R, , New York, NY
Mon Jan 7, 2008
Tman wrote:
If I'm reading this correctly, it sounds like the typical realtor [[snipped for brevity]]
~~~~~~~~~~~~~
Tman, you're beginning to sound like the typical troll. Now stop it. You've been here long enough to know your comment is a blanket attack.
2 votes
Lorie Gould, Agent, Duluth, GA
Sat Jan 5, 2008
Interesting Jennifer... I have not heard of this on an agents website before but I am not in CA.

When a seller list the home they do so with an Exclusive Right to Sell, Non-Exclusive, and Open Listing. The differences determine who gets paid depending on how the home sells. Many MLS's do not allow Non-Exclusive or Open Listings into the MLS. Our listing services here in Georgia requires that we enter a listing within a certain period of time (a few days) after we take the agreement if the agreement we take is their written agreement. If we use our standard Georgia contracts we do not have to place a listing within the listing service if the agreement does not state that the property will be listed within the MLS.

Exclusive to me means that the agent has exclusive rights to sell the property meaning he will get the commission regardless of how the property sells. I would contact the agent directly and ask him what it means. I would love to know. I certainly do not want to assume that he is doing anything unethical. If you have an agent then have your agent contact this agent and ask the question.

I look forward to hearing agents from CA comment on this and look forward to getting an update from you.
2 votes
Alan May, Agent, Evanston, IL
Sat Jan 5, 2008
It sounds as though you're talking about an "exempt" listing (also known as a pocket listing). Some agencies use this tactic with frequency, holding the listing "quietly" hoping that they will be able to find the buyer too. Hoping to be able to "double-side" the listing.

They're not really doing their clients any favors, since they're restricting the number of viewers who get to see the property... and since it's not in the MLS, its severely restricted. If sellers really understood how badly that handicaps the listing, I doubt that any would allow it.
2 votes
Kyle, , Los Gatos, CA
Mon Jan 7, 2008
MLS's rules differ however I noticed you are in San Jose. The regional MLS there MLSlistings.com allows brokers the ability to exclude listings from the MLS for a variety of reasons. Hence an "exclusive" listing. One that is not on MLS.
Web Reference:  http://www.mlslistings.com
1 vote
CJ Brasiel, Agent, San Jose, CA
Mon Jan 7, 2008
Jennifer,

In this market any broker that list a home "20% higher than market value" is not a very smart broker. If you (and/or your Realtor) know what the market value is then I would suggest making an offer at that amount. In a buyer's market I think it worth making an offer if you really like the home. If the home is new to the market, it may take it sitting there for awhile (60 -90 days?) for the listing broker to get a wake up call. Keep your eye on it and make sure your broker has completed a CMA for you and knows your desires.

CJ
1 vote
J R, , New York, NY
Sun Jan 6, 2008
Exclusive Right to Sell = You must go thru the listing agent to buy the house. If the owner finds their own buyer they must still pay commission to their listing agent.

Exclusive Agency = Other agents must go thru the listing agent to buy the house, if the owner finds their own buyer they don't have to pay their listing agent.

Both of these types of listings do indeed appear on the MLS. You, I believe, are referring to a "private" listing, which is one that the may either be an Exclusive Right to Sell or an Exclusive Agency but the agent is not putting on the MLS. In NY the agent must have the seller sign a form that states the buyer understands the if they sign this type of private "agency exclusive" their home will NOT be listed on the MLS.

Unless you are an agent you may not be able to tell by seeing listings on an agents website, whether they are private, or Exclusive Right to Sell or Exclusive Agency.
1 vote
Brooklyn Est…, , 11234
Sat Jan 5, 2008
In our area it is very common, a lot of agencies hold "EXCLUSIVE" listings without sharing them thru MLS. In fact it is very hard to make the deal with another agency even on MLS listings. It is becoming easier now that the market is turning, but for a period of time any house listed would sell right away, so agencies just waited for the buyer to come to them - no need to share commission. The seller signs the "EXCLUSIVE" agreement which states that only the listing agency has the right to sell his/her home, in this case if another broker finds a buyer, the seller will have to pay 2 commissions.
1 vote
Sylvia Barry,…, Agent, Marin, CA
Sat Jan 5, 2008
Agree with C.J. I sometimes also put the listing on other internest sources, such as Craigslist (pretty big in the Bay Area), but our MLS is very diligent - they patrol Craiglist and calls agents to make sure they sent in the 'exclude from MLS' form CJ described.

Sometimes the seller will take the property out of MLS (temporary off market) due to holidays, sickness, visitors, etc; but will allow the listing agent to show the house it there are somebody who is seriously about seeing the house. (not quite like what CJ says but with the same effect)

Sy lvia
1 vote
CJ Brasiel, Agent, San Jose, CA
Sat Jan 5, 2008
Jennifer,

I use an exclusive listing period for a variety of reasons. Most of the time, it is simply that the home is not quite ready to show. However, having an exclusive listing period allows me to market the home within my realm of contacts (mostly other Realtors). There is an "exclude from MLS" form that the seller must sign as I must comply with notifying the MLS of taking the listing within 48 hrs and that the seller is aware that is not publicly available on the MLS.

Sometimes I use exclusive listings to help build momentum about the listing. I normally have a sign in the yard stating "coming soon". I have found that is allows me to prepare everyone in the neighborhood for the first showing. I do not use it on every listing but sometimes it is a perfect tool.

CJ
Web Reference:  http://www.CJBRealEstate.com
1 vote
Roberta Murp…, Agent, Carlsbad, CA
Wed Jan 16, 2008
Jennifer: It's hard to know what is meant by the term "exclusive" when used in this context.

In the State of California, an "exclusive right to sell" means that the property is listed and the agent will receive a listing commission regardless of who sells the house.

An "exclusive agency" listing means that the listing agent will receive a commission regardless of who sells the home--EXCEPT IF THE OWNER SELLS THE PROPERTY. In other words, the seller may retain the right to sell his or her own property with no commission due the agent--unless otherwise negotiated.

Hence, the confusion about "exclusive" listings.
0 votes
J R, , New York, NY
Wed Jan 16, 2008
Ida, when people talk about "exclusives" I really would like to know that they understand the different KINDS of exclusives. The questioner is not specific about what TYPE of exclusive. Exclusive agency? Exclusive right to sell? Exclusive OFFICE, as in I will not be putting this on MLS? Unless we know what kind of Exclusive the person is talking about it's hard to answer.
0 votes
Ida Abelson, Agent, Richmond, CA
Wed Jan 16, 2008
Just the other day I received a similar question on my blog: http://realtyramblings.blogspot.com. Here is the post:

Question: I want to sell my home and interviewed a couple of agents. One of them said he would list my home as an "exclusive" and charge a lower commission. I'm confused as to what this means. This seems to be a good idea since he says it will save me a lot of money in commissions. Is this as good a deal as it looks?

Answer: You are wise to be skeptical. Remember the old adage "if it looks too good to be true, it probably is"? That applies here. Contrary to what you may think, an agent's primary job is not to market your home to potential buyers. His job is to market your home to other agents! Why? Every agent has a "stable" of clients. At any moment in time, I have about a hundred qualified buyers with whom I am actively working who may be interested in your home. And if I got your listing, I certainly would advertise the home to them. But each agent also has their "stable". So when I interest an agent in your home, I am, in essence, contacting all her clients! When an agent lists a home on the multiple listing service, he is advertising to all other agents that the home is available.

Sometimes an agent will offer to cut his commission in exchange for being the only agent who can sell the home. As the seller, you see a dollar savings in the commission. What you don't see is how expensive this "savings" can be. First of all, it may take longer to sell you home since you have severely cut the numbers of potential buyers. And because the home is not being allowed to respond to market forces (i.e. the greatest number of buyers looking at the home), you will never know if the sales price you ultimately settled for is the best you could have gotten. The more agents involved, the more likely you are to get your highest and best offer. So if you agree to this agent's suggestion of an "exclusive", you may be invoking another old saying - "penny wise and pound foolish"!
0 votes
J R, , New York, NY
Wed Jan 16, 2008
Jennifer, it sounds as if the homeowner is about as cooperative with the listing agent as the listing agent is to you and your agent. Not having a key or a lockbox shows non motivation IMO, which could be why the house isn't on the MLS. Either that or may there is already a deal on it.
0 votes
Brooklyn Est…, , 11234
Mon Jan 7, 2008
I think the agent is trying to sell the house, but he is probably very comfortable with the seller, and is playing a hard ball. He knows that the only way Jenifer can purchase this house is thru him. Bringing another broker probably will not do much, unless Jenifer wants to pay the second broker to represent her. This type of tactic is very common in our area. The sellers usually don't know that their broker is doing this.
0 votes
CJ Brasiel, Agent, San Jose, CA
Mon Jan 7, 2008
Jennifer,

I can't help but think the broker is not really trying to sell the home. If it were me, I would set up the appointment (with him) to see and take my broker with me. I would instruct my broker, that while I am looking at the house, he/she should be finding out -what's up? - with the listing. I would want to know how long the home has been available and how many offers (if any) had been received. The reason for not placing on the MLS, etc.etc. If your broker can't find out more information, I would say the listing broker must have someone in mind that is going to buy it. He simply is advertising on his site to show listings on his site. This one is an odd one but there is many times a reason. Not necessarily a good one but a reason. Good luck.

CJ

CJ
0 votes
Alan May, Agent, Evanston, IL
Sun Jan 6, 2008
In the Chicago area "exclusive" is called "exempt" and we also have to fill out the "exclude" from the MLS, which must be signed by the client, and it prompts the question: "why would any seller in his right mind opt to be left out of the MLS"?

When used as C.J. mentions, to build a little buzz about the home (I like the Coming Soon sign), or if the house isn't quite ready to show, exempt can be effective. But as an exempt listing, when the agency decides to offer it only among their favourites it's doing the seller a major disservice by limited the amount of potential buyers, and thereby limiting the potential offers.
0 votes
CJ Brasiel, Agent, San Jose, CA
Sun Jan 6, 2008
Just to clarify, I normally only list a home as exclusive for about two weeks. Not months.

Exclusive listings are also used at the seller's request. They may live in a gated community or have a home that they do not want just any one coming through the house via a lock box. I have had seller's with collections that only want the house shown exclusively by me.

CJ
0 votes
Lorie Gould, Agent, Duluth, GA
Sat Jan 5, 2008
Interesting CJ. I do not believe that we have the "exclude from MLS" form here in Georgia but I will have to double check on that. I have never had a client not want to be in the MLS so that need has never come about but one never knows what the future holds.
0 votes
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