That’s actually a pretty good question — posed by a newer agent at recent Edina Realty – City Lakes office meeting.
A signed MLS “Seller Withhold,” of course, is what most veteran listing agents procure at the same time the owner officially hires them to sell their home.
That allows the agent the time they need to properly prep a home for market rather than list it within the maximum three-day time limit prescribed by MLS.
You know, do agent stuff like help the owner navigate any local point-of-sale inspection; carefully review the Seller Disclosure with them; have the home professionally staged and photographed; and put together flattering marketing materials.
Of course, while all those things are proceeding, an aggressive listing agent is priming the marketing pump through effective, pre-list networking.
“Pre-Market Interval”
Cumulatively, those steps take (much, much) more than 3 days.
But, that’s all the time MLS gives agents to put a listed home on the market — unless they have a signed “Withhold.”
I’ve always understood that that was to protect unwitting home Sellers from agents who would “pocket” the listing — that is, market the listing exclusively to their own clients instead of exposing it to the broader market.
However, it’s ultimately in Sellers’ best interests to take as much prep time as they need before formally debuting on the market.
Meanwhile, it’s perfectly reasonable for Realtors — who are investing their time, money, and skill getting their client’s home ready — to insist on having a signed contract in place that protects them during the pre-market interval, and that ensures they’ll eventually be rewarded for their efforts if and when the home sells.
Sauce for the Gander?
If it makes sense for a listing agent to get a contractual commitment from a Seller whose house isn’t quite ready for market, why isn’t there something analogous for a Buyer’s agent working with a client who’s not quite ready to buy?
Actually, there is.
Whereas a typical Buyer Rep(resentation) contract has a 3-6 month term, it can be perfectly appropriate for a Buyer’s agent to ask for longer.
So, if the Buyer isn’t quite ready to start their home search in earnest — or if they’re looking for a unique, upper bracket property — I can certainly imagine a one-year term or even 18 months being reasonable.
P.S.: When do home Sellers not have to worry about their home becoming a pocket listing?
When their agent contractually promises — as I do — not to also represent the Buyer.
See also, “Pocket Listings: Good for Agents, Bad for Clients.”
