The state association of realtors (C.A.R.) attempts to address the pocket-listing issue in its latest edition of California Real Estate magazine:
http://www.onlinedigitalpubs.com/publication/?i=163273
They describe how agents think that pocket listings are OK, as long as the sellers sign the MLS-exclusion form.
But the exclusion form isn’t a permission slip for agents to ignore their fiduciary duty to expose the property to the open market, and go find their own buyer instead. Unfortunately, no enforcement is in place, other than the Code of Ethics – so you better behave!
They also have an article on multiple offers, which concludes with this gem:
Or, as Krull puts it, “For buyers or sellers, I tell them that multiple offers are the reason they invented bourbon whiskey!”
We are a classy bunch.
More from the C.A.R.
California Realtors are raising objections to the Corker-Warner GSE reform bill because of the reduction in loan limits in high-cost areas.
The GSE reform bill (S. 1271) calls for winding down Fannie Mae and Freddie Mac’s operations over five years and encourages more private capital to enter the mortgage market.
So the bill reduces the GSE single-family conforming limit from $625,500 in high-cost areas to $417,000 by the end of five years.
“While the bill is a starting point, any final legislation must not hinder liquidity for qualified homebuyers, especially in a down market,” according to the California Association of Realtors.
“California, in particular, will be adversely impacted by this bill, which seeks to lower loan limits in high-cost areas, thereby making it more difficult for California homebuyers to get equal access to affordable mortgage capital and reducing homeownership opportunities,” said CAR president Don Faught.
Sens. Bob Corker, R-Tenn., and Mark Warner, R-Va., introduced their bipartisan GSE reform bill on June 25, which has generally been well-received by industry groups, regulators and consumer groups.
“We commend Sens. Bob Corker and Mark Warner for proposing meaningful and bipartisan legislation, which provides an opportunity to redefine America’s commitment to housing,” Faught said.
However, CAR will be working with California senators to improve the bill to “ensure it won’t harm California homebuyers or its housing market,” he added.
http://www.nationalmortgagenews.com/dailybriefing/California-Realtors-Object-Fannie-Freddie-Loan-Limit-Reductions-1037213-1.html
Hi Jim,
Related question, I am currently renting and looking for a place to buy. My wife and I like where we are renting, and the landlords sound like they might be willing to sell. Do we, or our realtor, have any responsibility to them to try to get them to list it? Any recommendations for this situation?
Thanks
I don’t think so.
It’s when realtors are soliciting sellers directly to sell, then back-pedal and claim they only represent the buyer that bugs me.
If you are pursuing sellers directly, they should be some obligation to at least tell it to them straight that what is best for them is going on the open market.
The last guy who was offered $2.15 for a teardown? He was smart to take it, because it was unlikely that anyone would match it on the open market. But that is an extreme case – most buyers want to pay what the last guy did, or less.