The California Association of Realtors addressed the ‘pocket listings’ topic.
It took them an hour to boil it down to this – the listing agent is bound by California law to properly explain the benefits of exposing the property on the MLS, and how it is in the sellers’ best interest.
The webinar finishes with this threat: “Regulate yourself before the regulators/trial attorneys/legislators regulate you.”
So there, problem solved.
Data from the five counties around Silicon Valley were used to demonstrate the issue. Of last year’s sales in Santa Clara County, 15% of them weren’t in the MLS. The median price of those was 10% lower than the median SP of those that did sell in the MLS.
They only touched on one important question during the Q&A session:
What can be done about listings being inputted as ‘sold before processing’?
The MLS rules require that all listings be submitted onto the MLS within 48 hours. They wimped out on answering the question, saying that it is possible to consummate a sale within the first 48 hours, but the listing agent is still bound by their fiduciary duty to the sellers.
Sellers or other agents can complain to your local MLS to report violations. Those found guilty are faced with the possibility of severe hand-slaps and letters in files, though for good measure they did add that you could lose your real estate license. Yeah, right.