Pocket Listings, Off market listings, Excluded from MLS –
these are all different ways of saying “privately held listings” In other
words, it’s a secret. You don’t know about these listings unless you belong to “the
club” that keeps these listings held close to the chest.
There are definitely two schools of thought in this issue.
One is that some sellers do not want the exposure. Privacy concerns such as
divorce, a death, many valuables, notoriety, etc. Some agents say that a buyer
may be willing to pay more for the privilege of not having to compete. But isn’t
it competition that drives the market? Without competition, how do you know
what the true market price is? Will homes that never reach the marketplace be
excluded from appraisals due to their lack of marketability and therefore not a
true sense of value? Hmmm. Some say it’s
the agents that convince the seller it’s the better thing to do so that they
can “double end” the deal and make more money for themselves. Ah ha! Here in
lies the real issue, dual agency or the same agent representing both the buyer and
the seller.
“Dual Agency” actually means the same brokerage representing
both the buyer and the seller, which may still provide fiduciary duties to each
client without issue. But in many cases the same agent will represent both
parties. Kind of like having the same lawyer represent the plaintiff and the
defendant. I can never see how an agent could truly have the best interest of
both parties at, but how would I know, I’ve never done this.
As defined by Wikipedia; “A fiduciary is a legal or ethical
relationship of trust between two or more parties.
Typically, a fiduciary prudently takes care of money for another person.” An
agent representing a seller markets their home in an attempt to sell their house
for as much money and with the best terms as possible. An agent representing a
buyer helps their client to buy a house for a little money and the best terms
as possible. A mucky issue it is when representing both parties.
I’m certain that as long as it is legal, there will be
pocket listings and dual representation. Each real estate transaction is unique
and different from the next. The longer I’m in real estate, the more I realize
that there is no generalizing. People are unique, real estate is unique, and
the combination is endless in providing unique experiences for each and every
transaction. Use your best judgment but always consult a professional if you
have questions – or two professionals. Doesn’t hurt to get more than one
opinion.
