Question regarding house for sale but not on MLS..

Christine and Beth (and any other agents) would know the answer to this..

I don't really understand why a listing broker would not put a house on MLS. From what I understand they don't do the MLS route because they think the house is desirable enough to be sold within their brokerage firm and they would get more commission since they wouldn't be splitting the commission with a selling broker.

When the real estate market was hot I could understand this because houses were selling like crazy..but in this market, shouldn't any house be put on MLS since it is the broker's duty to find a suitable buyer as quickly as possible? Am I missing something?

TIA!

Re: Question regarding house for sale but not on MLS..

Some areas can easily sell without the use of MLS, yes, even in this market. Last year I sold my home through a realtor, and we did not list it on MLS. It sold within one month.

Benefit to me was that I was charged a lower comission when the listing agent sold it, and also, less random people walking through my home.

I was very happy it did not have to go to MLS.

Re: Question regarding house for sale but not on MLS..

they are cheep. find another broker.

Re: Question regarding house for sale but not on MLS..

Re: Question regarding house for sale but not on MLS..

Message edited 10/27/2011 5:42:47 PM.

Re: Question regarding house for sale but not on MLS..

Aside from wanting to try to sell it themselves (to make more money), there are a few other reasons why a listing agent willl keep an exclusive (rather than list a property on MLS):

1. Homeowner preference: Some people are very nervous about putting their home on the market, so keeping it exclusive for a couple of weeks or a month is a good way to ease them into the process. They won't be bombarded by showings from agents they don't know and who have no connection to the listing agent. Then, when it goes on MLS, they are used to the whole showings process.

2. Issue with house: I know that in my office, we rarely keep exclusives, but we sometimes will if there is an issue with the house, such as it needs to be majorly cleaned up or big items need to be fixed, or there is a hostile tenant living on the premises who makes it hard to schedule showings/gain access. In those cases, we will sometimes keep it exclusive to try to sell it, but then put it on MLS when the problem is resolved.

3. Using Scaled Commissions to Get Listings: Some companies, I've heard, will offer to take a lower than normal commission if they sell it themselves to entice a seller to sign (with the thought that they are going to save money). It usually goes something like, "I will keep it exclusive for 2 months and try to sell it myself. If I do, you only owe me 3%. After that, I will put it on MLS and then the commission will be 4% or 5% or whatever they negotiate. My company does NOT do this, but I've heard of some other brokers in my area getting listings this way.

Generally, exclusives usually wind up on MLS after a certain period of time. If you are working with an agent who doesn't have the exclusive, and you are interested in a house, you can always have your agent contact the listing agent to see if they'd be willing to co-broker it.

Personally, I want my listings to sell, and I don't really care who sells them, as long as the buyer is qualified and motivated. So I want my listings on MLS, and try to pitch it to my clients as a desirable tool to maximize exposure and accomplish a quicker sale.

Re: Question regarding house for sale but not on MLS..

Thanks everyone.

Christine, that was a great response..I never thought about the emotional aspect of having a house listed on MLS and how an exclusive listing is basically like taking baby steps. Thanks again!