Blast From the Past — Like, 2005
More signs that at least some segments of today’s housing market are overheating: I am hearing about — and running into personally — “For Sale” homes . . . that really aren’t.
That is, they sell almost immediately after coming on the market, but the listing agent neglects to tell other agents about the change in status.
Result: Buyers’ agents show the home, their client expresses interest, and only when their agent contacts the listing agent to get details are they told, “Sorry, it already sold.”
That is, if/when the listing agent gets back to them.
Solutions
One response that would put a stop to this practice immediately?
Board of Realtor fines for such dereliction.
How about it, MAAR?? (that would be the Minneapolis Area Association of Realtors).
Big or small, it’s the broker’s job to keep MLS — and other agents — apprised of the status of their listed homes.
If they can’t do that, they’ve got no business taking listings and putatively representing Sellers (and often Buyers in the same deal; see below).
Selling Too Fast
The proper way to handle a fast-moving listing is to disclose “offer in progress,” or, if the home is in multiple offers, letting other agents know that, as well as the deadline for submitting an offer.
Why keep quiet about those things?
One reason is that the agent representing the Buyer is — guess who? — the same agent representing the Seller, a practice called “dual agency” (also known as “hogging”).
See, “Seller’s Market Side Effects: More Would-be Realtor ‘Hogs.'”
I just ran into that over the weekend as well.
Advice to Owners
The other party in a position to police such bad behavior is the owner of a newly-listed home.
If that’s you, be (very) skeptical if your agent almost immediately brings you a “terrific” offer from someone who is also their client, even if your agent will give you a “break” on their commission (another staple of dual agency deals).
Ask yourself, “Which is better, selling my home for $210,000 and paying a 6% commission, or, selling for $200,000 and paying a 5% commission?”
Need help with the math?
The second scenario nets you $7,400 less (“cheaper” commission, indeed).
Broad or Narrow Market Exposure
Also ask “your” agent: “what have you done to expose my home to the market?,” and “what interest has there been from other agents who’ve shown my home?”
See also, “Dual Agent vs. Double Agent.”
One of my favorite dual agency (non)jokes is about a posse that apprehends a bank robber who doesn’t speak English.
The head of the posse says to him, through an interpreter, “tell us where you stashed the loot or we’re going to hang you.”
The panicked robber blurts out (to the interpreter), “I hid it under an oak tree one mile west of town.”
The interpreter then turns to the head of the posse and calmly relays, “he says he’s never going to tell you — hang me!”
