There is a new listing agreement a home seller can have that is an MLS input only. "MLS input only". MLS - Multiple Listing Service.
The issue that can arise if the commission portion on this type of "altered" For Sale by Owner property is not entered, it probably won't get shown. Who wants to work for free?
Let's say there is a commission entered at 2.5% - which that and 3.0% are typical these days.
After the buyer's agent shows his clients and runs the comp data, writes the offer and includes a ton of paperwork that keeps his buyers safe and establishes that the sellers are acting on their own accord, without an agent, the sellers develop a sinister plan with the buyers.
Or they attempt to.
The Man behind the curtain at a Valencia For Sale by Owner
Let me unpack this from the beginning for you agents, home sellers, and buyers that want to keep up with the latest trends in real estate.
I have been working with our homebuyers in this particular case for a few years. They have referred business and we were their first stop when looking for Realtors to be their representatives on their home purchase which was in Valencia CA.
As with all of my home sellers, I have them on a monthly update as to what is happening in their neighborhood related to the home we sold them.
These are market trends and very accurate information related to housing prices and those homes that enter the for-sale market, those which are foreclosures, those which are distressed, which have sold and which have canceled or expired.
It's great data and is like a nonobtrusive bank statement.
It comes in email form and is direct and to the point. It comes with all the fancy real estate pics of the homes that are comparable and is a great gauge for future equity gathering.
These clients of ours sent me a Zillow page for a listing that is currently on the market in Valencia. I clicked on the text message and it was indeed Zillow with a home listing that stated: "For Sale".
Zillow, like Trulia, can be a bit tricky to see the "for sale" part versus the "sold or not for sale" part. Zillow makes money if you give up your personal information when doing an inquiry for "more information" or give up who you are in order to find out what any property of yours (or another's) is worth. They are expanding though and are starting to sell real estate, we will have to see how that goes.
The property was in Valencia, stated "For Sale", so I went to the Multiple Listing Service and dug in after I went to our top MLS system SantaClaritaHomeExperts.com and couldn't find it.
In the MLS the property was not found. I did find when it sold last and it was a while ago, so that could not be it.
I then scoured the page on Zillow in an attempt to find the "real agent ID" and not those agents who are Paying Zillow to be on the same page.
I found it and made a call. No answer, the VM was full. I went to google and ran his CALDRE license number in the system and came up with more information and another google search revealed another phone number.
I tracked him down by text and asked him about the listing.
He was surprised to find out it was not in the Local MLS.
Meanwhile, my clients wanted to see the property in person, but I had to delay until I an official MLS sheet. I asked the agent to send me the San Diego MLS sheet where the property was entered. That board of realtors does not share data with our Los Angeles Board of Realtors. So hence the agent biting off more than he could chew in taking this listing.
Update - I looked into the MLS in San Diego - Apparently there are more than one and two of them do share data as of very recently with CRISNET. In this case, it just took a couple of extra days for the information to be converted and fed to CRISNET.
This whole time, this is looking like a standard sale listing. After I received the MLS sheet - it showed 2.5% commission and had a real broker's name, licensed and in good standing at the bottom of the sheet. There were descriptions about the home, the assessor's parcel number so I could delve deeper into the historical aspect of the home for my home buyers.
The MLS sheet was very typical with almost zero "additions" fields which did not transfer over to the local MLS when the listing was transferred to our local Valencia CA Board of Realtors.
While all of these issues are issues with an agent selling property where their coverage is not the best, whereby they aren't being the best the homeowner is able to get, there are between the agent and their seller.
In this case, I have my home buyers to represent and protect. I want to be there for them, especially when I continue to unfold this true story.
The love story continues to unfold
The prospective buyers loved the home, it was what they want.
Apparently at some point during my showing, Mrs. Seller and Mrs. Buyer exchanged phone numbers.
We came back, I pulled the data, my buyers have a home that will need to be sold at some point, so we wrote a solid contingent offer for them including all of the paperwork to keep them safe. Trust paperwork, FSBO paperwork, many different and applicable real estate forms, stuff no FSBO seller is going to know.
However, I only found out that this was to be treated as if I had walked into an FSBO, For Sale by Owner, property with my buyers after I showed the home to them and after the number exchange.
I reached out to the agent, telling him that we were going to write an offer and to ask if there were any issues or other information that he wanted to be submitted within the offer we were writing? Such as who he likes for escrow (I'm hoping at this point the escrow company isn't in San Diego - what a drive!) And which Title Company, etc.
He won't answer his phone, so he texted me back, This home is to be treated like an FSBO. I only put their home in the MLS as an MLS entry only. You are to deal with Mr. and Mrs. Seller, I included their email and phone number on the MLS sheet in the private comments.
Ok, I packaged up the offer, with the financials, the approval letter and the love letter and sent to both the agent and the other email which was designated for the home seller.
I texted and called all parties to ensure they received our offer. After a while, Mrs. Seller stated she did receive everything.
This was mid-week. We gave them the standard time in which to respond.
No response three days later, then we get a phone call from Mr. Buyer. Apparently, some ex parte stuff was going on.
Mrs. Buyer and Mrs. Seller had been talking and Mrs. Seller thought it would be more advantageous to dump Connor and Paris and work with them directly.
That's a bummer, I know. It happens. It's enforceable through :)
There is a mechanism in place that will allow us to retrieve the agreed-upon and MLS advertised compensation.
We shall see what happens, as I stated this is in process at this time.
It could be they get another offer from another real estate agent where the home buyers do not have a home to sell.
Maybe they will get a higher offer? Maybe they will get a home buyer who does not have an agent so they can take advantage of them - The sky's the limit.
The point is for home buyers and agents to be careful.
If you are wanting to buy or sell a home gather your facts.
We have meetings for both parties and it is our wish that all parties to a real estate transaction are kept safe.
I'm Connor with Honor and I'm glad to be at your real estate service.
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