The new C.A.R. forms for 2020 are available, and the most interesting is the MLS-exclusion form in light of the NAR Clear Cooperation policy that begins on May 1st.
Last year I asked the C.A.R. lead attorney about their stand on Coming-Soon and off-market listings, and Gov said it is up to the brokerages. Their new form reflects it too – they have left it optional for agents sellers to choose to comply:
The form does a better job disclosing the listing-agent shenanigans, and makes them a choice for the seller. But will the listing agent discuss the choices? Or just write it up and send for sigs? The sellers just want their money – they assume their agent will be implementing the best ideas to achieve top dollar.
On May 1st, the Clear Cooperation policy will be in effect, which was intended to discourage off-market sales. But in paragraph 9A you will see that office exclusives are permitted, which will legitimize selling properties in-house. The realtor shops with the most listings will prosper if they pitch them hard to their fellow agents – and most already have an internal marketing system to facilitate.
There is an argument that off-MLS sales are good for the seller because the buyers are pressured to pay all the money before the property goes on the open market.
But off-MLS sales add some uncertainties:
- Did the buyers steal it, or did they over-pay?
- Were there other buyers that would have paid more?
- Are the off-MLS sales legitimate comps for the next guy (seller or buyer)?
- Are we still committed to sharing our listings with other agents?
The MLS will still exist, and be the market of last resort because the best properties with the best prices will be sold in-house, or to the aggressive, professional salespeople.
Richard just procured a new sale for his investor client by calling agents who had sold similar properties recently. One told him that he did have a Coming-Soon that was a 6-cap, and gave him the address. Richard hustled his buyer over to the property and promptly submitted an offer, which got accepted yesterday!
Why are Coming-Soon/off-market sales attractive to listing agents? Because they can save time and money on marketing, and hurry up to the next deal. But that selfishness will change the landscape for buyers and buyer-agents, and both will need to be well-connected to succeed.
Hi Jim,
Many of you have asked how the new NAR rule on pocket listings impacts The PLS so I am reaching out today to shed some light and let you know what’s been going on behind the scenes with our platform.
First and foremost, it’s important for you to know that the ultimate goal of The PLS has always been to connect ALL agents, give you a competitive advantage and added value while ensuring the continued survival of our community. We are more committed than ever to making that happen. More on that in a minute.
The new NAR rule, which goes into effect as early as Jan 1 2020 and no later than May 1 2020, means that all signed listings, including those listed on The PLS, must now be uploaded to The MLS within 1 business day of being marketed to the public. It will limit the practice of pocket listings going forward and agents who are not in compliance will be subject to a fine.
However, the NAR rule on pockets is not ‘game over’ for The PLS. In fact, the rule coincides with major updates to our business model and platform that are not only in compliance with the rule but work in concert with all NAR guidelines.
So, while the NAR has been busy tamping down pockets, The PLS has been working on innovative ways to better serve agents by creating new opportunities to generate direct leads, add value, and ultimately protect our livelihoods.
I can’t disclose too much just yet as we are still in development but the new PLS platform will introduce a revolutionary new functionality that is unavailable anywhere else.
I can’t wait to share more about what we are working on. I think you will be truly thrilled with the launch of the new platform and how it can empower your business on both the buying and selling side.
In the meantime, I hope you all have a wonderful holiday season and I will follow up with updates as they come.
Everyone will have a “new and improved’ way to comply.
Dear Jim,
We now have a legal way to continue our closed market practices because, as you know , the best markets are not free markets.
Sincerely,
Santa