Reader Jim G. made a couple of friendly comments on how Compass is handling our objection to the Clear Cooperation Policy. It followed what a big-mouth in L.A. said this week when he called the Compass explanation, ‘disingenuous’.
We’re all struggling to describe the new world of home sales.
It’s mostly because we liked the old way and it sure seemed to work just fine – at least until an attorney in Missouri made our life miserable. It’s a new world now because attorneys will keep suing us until we run out of money.
The main reason that the Clear Cooperation Policy needs to end is because it’s a mandatory requirement. The government is the only entity who can make things mandatory. If we force sellers and agents to put their home on the MLS, then it is inevitable that one of them won’t like it and they will file another class-action lawsuit.
Let’s replace the CCP with a simple description of the choices, and have the seller pick one:
The Three Ways To Sell Your Home
Open-Market Sales – This is how to reach the maximum number of buyers. If a home has the ideal combination of selling features (good condition, preferred location, attractive list price, and sold by a competent salesperson), then it should sell quickly – probably in the first ten days on the market. The tradeoff is if the home doesn’t sell right away, then buyers assume something is wrong with the price, and they expect the home to sell for less.
Will waiting longer will improve the chances of selling? Yes, but only when prices/values are appreciating, and they eventually reach and exceed your price – making the home the best deal in the marketplace. In a flat or depreciating market, time is the enemy. The longer it takes, the bigger the discount expected. This buyer sentiment happens in all markets and price points. The pricing trend in your market, and the current market conditions, should play a vital role in your decision here.
Off-Market Sales – The seller’s advantage here is that a buyer is pressured to pay your price, otherwise the home goes on the open market. There isn’t the full exposure to all buyers, but you only need one. Sellers with no time constraints and a preference for privacy can empower their listing agent to explore their off-market resources, and if a buyer isn’t found and/or the anxiety mounts, then the home can always be put on the open market later.
Auction – Homeowners willing to sell their home for what the market will bear on a specific date may want to consider an auction of their home. There is full market exposure, and the animal spirits can take over and drive the price above market value. In many cases, the commissions and closing costs get paid by the buyer too.
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The key advantage of selling on the open market or by auction? It instills urgency in the buyers. They know that if they love the home, they need to step up now and buy it before they lose another one!
This urgency isn’t required to sell a home, and it is regularly wasted when sellers and their listing agent don’t use it wisely.
But it is invaluable to the listing agents who know how to exploit it.
Before making your choice, know that the hassle factor is real – especially if you are living in the home. Getting the home ready to sell costs time and money, and then having strangers roaming through your home with little or no notice is inconvenient, to say the least. Going on vacation for a month, or moving out altogether, is worth considering.
End of sellers-choices form
Until, and unless, the industry is willing to educate the masses on the fine details about selling homes, we will keep having results all over the map. Have you noticed how some homes sell right away for retail or retail-plus, and others don’t sell at all? It’s because we allow the marketplace to be a perfect mess with little or no education, guidance or understanding. There are no rules or standards about selling a home and making a bad/wrong choice can be costly.
Let’s start with a basic description of the choices available to sellers.
Interesting times we live in Jim and Mr. Jim they might be a better way and understand the need for a change is great especially for those looking for housing.
The current challenges—rising costs, economic uncertainties, and market-driven policies—demand not only technological solutions but also compassionate policy shifts that center on families and communities.
A Call for Collaborative Change
Blockchain and decentralized technologies offer a glimpse into a future where fairness and efficiency coexist. Yet, technology alone cannot bridge the gap—collaboration among policymakers, developers, and communities is essential. Families need a system that prioritizes stability over speculation, long-term value over short-term gains.
The vision is clear: communities united, leveraging blockchain tools to create sustainable, accessible housing ecosystems. As people begin to co-own, invest in, and manage housing collectively, they regain control over their environments, breaking free from the grip of speculative forces.
Aligning Innovation with Human Values
True progress requires housing to be reimagined not just as an economic opportunity but as the foundation for life. Through emerging technologies like blockchain, we have the tools to create transparent systems that support fairness. But to make a lasting impact, this must be accompanied by an unwavering commitment to human values—putting people before profits and ensuring that housing empowers rather than exploits.
When homes serve as places for families to thrive—not commodities to trade—the heartache caused by displacement and inequality can begin to heal. This is not only the future we should aspire to but a reclaiming of the ideals that once defined the America we know: opportunity, fairness, and the belief that everyone deserves a place to belong.
I’m not sure where you are going with that but identify yourself as a Coldwell Banker agent from Kansas please.
There might be “true progress” available near you, but suburban San Diego is built out. There is no place for innovation to go.
We have a finite amount of housing and homeowners who love it here. I used to offer them $1 million, and now I offer them $2 million to leave town and they still aren’t interested.
It will be interesting to watch how different types of sales occur in different types of markets.
I bet when supply is low and the economy is booming there would be more off market sales.
However when the economy is down and there’s a large supply of homes MLS and Auctions would be more popular.
Other than privacy I dont understand why a seller wouldn’t want their house listed on MLS. I remember back in the early 2000s and even auction houses would list on MLS with the auction date assumingly to attract more potential buyers.
Other than privacy I dont understand why a seller wouldn’t want their house listed on MLS. I remember back in the early 2000s and even auction houses would list on MLS with the auction date assumingly to attract more potential buyers.
Society has changed. A lot.
We could blame covid for the hunkering down and cocooning underway but it started before then. People don’t like being around people, at least not as much as before.
Those who have a big problem with strangers being in their house are probably better off with an off-market sale.
You can tell that I’ve loosened up about them. I still strongly prefer open-market sales, but there might be a seller who wants to go off-market. It’s their choice.
Look at the one we did earlier this year, which I think was the only example of me selling a home off-market on behalf of a seller.
We received an unsolicited offer while preparing the home for sale. There was only one sale higher in the history of the world, and and it was a spectacular remodel of the same floor plan.
It had closed for $2,350,000 off-market, and our offer was $2,175,000. We did a re-face of the kitchen and new carpet and paint. The bathrooms were original and we didn’t touch the hardwoods.
Do you risk blowing off the $2,175,000 and go for the extra what? $50,000? $100,000? Knowing it could crash and burn and lose that much too?
I was willing to chance it because I didn’t care for the realtor, but that’s a bad way to make that decision. We made the deal.
Here’s how it turned out since (my sale in red):
https://www.bubbleinfo.com/wp-content/uploads/2024/10/Image-2024-10-18T115259533.png
There is a case to be made for unique (read: unusual) homes that only appeal to a small subset of buyers that selling the home off-market is the way to go. Weird houses need weird people to buy them, and you can’t just stir up a deal like that at a moment’s notice.
Society has changed. A lot.
We could blame covid for the hunkering down and cocooning underway but it started before then. People don’t like being around people, at least not as much as before.
This is the type of detail you should bottle and sell.
I would have never guessed that things like open houses had changed over the years. But, the more I think about it, its a rarity to see “open house” signs on busy street corners Saturdays and Sundays.
I guess with all the online pics, map details, and street views actually walking through the house isn’t even nessasary anymore.