I was in Orange County yesterday and saw this in a local publication:
The off-market craze is just getting started.
We’ve already been hearing the hucksters at open houses who lead with their only pitch:
“I operate in the off-market space.”
“Does your agent offer you off-market deals?”
“Would you like me to alert you to our off-market listings?”
“Ok, great – sign my buyer-broker agreement right here.”
When the inventory of superior homes being so tight, it is inevitable that buyers will be lured into thinking that there might be something they’re missing.
But the real benefit to the off-market action is that realtors regain control of the market.
The industry loved it during the frenzy when the MLS/search portals were publishing sales that closed several hundred thousand dollars over the list price in the first few days on the market.
But now, the MLS/search portals are the enemy.
They publish the number of days-on-market, and the price reductions….ouch. If you are a listing agent of one of those listings, you are begging for ways to hide those facts. The agents who ‘refresh’ their listings have been thwarted now because the MLS also publishes the CDOM, or combined-days-on-market to highlight when a listing was just cancelled and re-inputted:
This is one of the main reasons why the Clear Cooperation Policy will be attacked by the brokerages.
Operating in the off-market space avoids racking up days on the market, and public changes in price. Think about the commercial brokers – you have no idea how long they have been sitting on that listing, or what the price was an hour ago, let alone tomorrow.
When the market is great, then the truth is our friend.
Nowadays? Not so much.
Potential home buyers must think that the real estate gods have it out for them. Rates and prices went through the roof and never came back (yet), the bidding process is a disaster, and now they are forced to pay for their own agent (maybe). In spite of the internet, the real truth about the market has never been so well disguised. They can’t get a break!
Sellers just want their money.
Compass needs a partner. If we split from the pack over the CCP then we will be labeled the sole renegade. But if eXp, Realogy, KW, or Berkshire joins us then the rest will fall in line (the eXp CEO said so). We can quit the MLS, and make Zillow/Homes.com publish our listings the way we want them published.
In the meantime, we can expect the off-market craze to thrive.
“ Potential home buyers must think that the real estate gods have it out for them.”
Perhaps, but how long will it take potential home buyers to forget the past? How many other agents or pundits with a national audience are talking about/focusing on these issues?
Are agents in denial, or they just don’t get it?
How many other agents or pundits with a national audience are talking about/focusing on these issues?
Not many, and it might just be little old me.
Getting rid of CCP would be the worse thing possible for the consumer, let’s limit your exposure so my firm can double end the deal. Plus studies have shown the seller nets less without MLS and portal exposure. It would also force Zillow into the brokerage business and they would be recruiting all the teams. Hopefully the industry thinks this through and their greed doesn’t destroy real estate in the US as we know it.
Oh come on if you think the intensity needed to be a buyer over the last 4-5 years has been off the charts, wait until the next couple years unfold.
Let’s make deal that everyone seems to favor. Brokerages can do office exclusives for 60 days before having to MLS input.
It means full market exposure. If that doesn’t sell it then I’ll let you have a shot at it.
Signed, every commercial agent who ever lived.
New-home builders don’t play by these rules. Commercial agents don’t play by these rules. Why should we?
How does Compass justify reaching the maximum amount of buyers? Every listing is on compass.com and we are agent friendly. Make an offer!
You’ve known me since before Compass and before all this gibberish. Do I like it? No. Can I fight it? No. Shall we help the most people? Yes.
Jim no seller will benefit by less exposure. Period. This is solely about Compass and other mega firms trying to double dip deals so they earn more profit. This is a corporate greed play that hurts all consumers. Also we both know that sellers who felt like they weren’t given fair market value will have no recourse because corporate lawyers will have included language to protect the brokerage. The industry can’t go down this path in my opinion.
Jim no seller will benefit by less exposure. Period
Compass needs to refine the pitch but there are examples where buyers will purchase an exclusive offering for more money than deemed reasonable by others.
How does the real estate market keep going…..?
The bull market officially turned 2 years old this week, creating over $12 trillion in added wealth to U.S. households. The top 10% of Americans — those with a net worth of over $1.8 million — own 87% of all individually held stocks and mutual funds. The top 10% has gained over $10 trillion in added wealth over the past 2 years and their total wealth now tops $100 trillion — up from $76 trillion before the pandemic.
I agree with Jim.