Profile picture for Tborg

Are agents required to show all homes in MLS?

We are currently utilizing IggysHouse.com as our free MLS listing service in the Chicago area (Hinsdale). My hopefully simple question is - if an agent has a buyer that is looking for a home and it is listed in the MLS service, are they required to show that house to their client?

I am a realist and know that an agent may not highlight a free listing service home or FSBO, but if we are paying 2.8% in commission on a $700K+ home, I would think they would want to show our home.

Zillow link - http://www.zillow.com/HomeDetails.htm?zprop=3891810

Any and all feedback is welcome. There are many more pictures @ www.iggyshouse.com.

Thx.
  • December 13 2007 - US
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Answers (28)

I don't think there is any "rule" that an agent has to present every home that is listed on mls. If it was me and the seller is willing to work with an agent, I certainly would recommend it if it met all the criteria that the buyer wanted.
Colleen
  • December 13 2007
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Profile picture for Tborg
Thx Colleen. We have had a number of brokers show it, but we also were getting some 'gossip' feedback as to the fraternity of agents that don't show these types of properties. We are working with buyer agents, and I thought to be in MLS you pretty much had to. Thx again, I realize that there has to be a buyer who wants to see it.
  • December 13 2007
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In the New York area if the agent participates in the MLS service they and there entire office is obligated to show homes that are using that MLS, however if you are not listed with a broker and are on the MLS via a fsbo website that includes the MLS as a package deal, you do not have the safety or backing of a broker. If i was going to give out 2.8% anyway I would list with a broker for another 1% and not have these worries.
  • December 13 2007
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Sometimes we REALTORS® have gotten or afraid we could get burned by showing for sale by owners, in case our buyers and the seller would go behind our back after we have set up, dug up info and shown the property! But on the other hand if you know and trust or buyers and/or the sellers it could be a win-win situation for everyone. I have even sold FSBO land, and it is not like it was hard for my buyers to see land without me! And you hear all kinds of things like some agents won't show a property that is listed for anything less than 7% commission as anything less that 3.5% for their and their broker cut isn't worth it. But I think most agents have their buyers best interest at heart and willl tell them about anything that is available.
  • December 13 2007
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Laws are different in each state. In New Jersey, if a Realtor is working as a Buyer's Agent, he has an obligation to work in the best interests of his client, which means showing the homes he feels best for his client.

That being said, the reality is that many real estate agents avoid listings where the commission is low and listings where the seller is not represented by a Realtor. Unrepresented sellers have no one to turn to for advice. A buyer's agent cannot give a seller advice or counsel. I would rather be communicating with a listing agent than a homeowner who may know little about the real estate process.
  • December 13 2007
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Profile picture for Tborg
Alan and Neva,

Thanks for the candid responses. They are helpful. I can appreciate not wanting to work with people who do not know what they are doing (I am in sales!!!).

The part about 'showing what he feels best for his client' is the part that concerns me. Do you think a 2.8% commission is low? From our local intelligence - most buyer agents are getting between 2 to 2.5%.

I have sold my previous two homes 'by owner', so I do know what I am doing.

We have told buyer agents that we will consider rent to own, sales contingency, etc - and we will. We paid out a 2.5% commission on our last sale over 5 years ago.

MAF - we may consider that route if we could find the right seller agent for 1%.
  • December 13 2007
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It's not uncommon for us to work on 2.5% in CA. Like Alan and Neva, however, I am always super cautious about working with FSBOs - even those "in sales". There are so many slippery areas in real estate law, and an unrepresented seller can inadvertently create some nasty issues. I hate seeing sellers headed into a quagmire, but, as Alan says, a buyer's agent cannot give them advice, and we must push for the best interests of our client.
  • December 13 2007
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I completely agree with the response that MAF0711 gave. Additionally, I am an agent, and in my area, there are so many homes available through Brokers, it would be my preference to negotiate with a Broker, than with a homeowner that has emotional ties to the property and may not be realistic about what the fair value is. The old saying is true, you get what you pay for. Statistically FSBO's net 8-12% less than a Broker listed property. Get an agent, you won't be sorry.
  • December 13 2007
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Carol and Marrie,

Thx for the additional feedback.

Carol, Real estate law and sales are 2 different things. That is why there is a contract and why attorney's handle the closing. Sellers creating nasty issues - can you expound on that a little? Hopefully you can tell I am trying to work and cater to agents, so if I can avoid a pitfall, it is helpful.

Marrie - I guess I am missing the point on agents negotiating with agents. Ultimately it is the seller and the buyer that are negotiating the deal (it is their money). I realize agents facilitate the process and act as advisors and go-betweens, but the negotiation really is done by the buyers and sellers. (I guess if you have people that do not understand the process, then I could see the agent playing a bigger role - but then that is an uneducated buyer, and they probably should not be looking to buy a house!!!) Marrie, I have not seen/heard that statistic on FSBO's netting (key word - NET) that much less than Broker listed properties. I would be interested to see where you got that info from.

I am getting the type of valuable feedback I had hoped for - so thanks!! I am also getting a better feel of the reservations agents have on FSBO's.
  • December 13 2007
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Profile picture for Alan May
Agents show the properties that appropriately fit the needs of their buyer clients. It would be self-defeating if we didn't. If you are paying a reasonable co-op commission, it shouldn't matter if you're FSBO on the MLS.

If it suits my clients, I will show it.
  • December 13 2007
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Elvis,

First, I feel honored to have a response from the King!! Thanks. I think 2.8% is a reasonable co-op to a buyer agent and yes, I am on MLS. Again, I realize there has to be A buyer to start, so I do appreciate your willingness to show a property like mine and understand that it should not matter.
  • December 13 2007
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Tborg,

I agree with you on everything you've said. You said you have an attorney to handle the legal aspects of selling your house, so you're well covered. My brother sells real estate and he said all you really need is an attorney or title company to handle all the paperwork. It's much less than hiring a listing agent! I think agents need to realize many sellers aren't willing to shell out 6-7% of a $700,000 dollar property. It's ridiculous.

I can see in the 60's and 70's getting 6% for an agent, when houses were $20,000. Now it's 607% regardless of the price of the house. It's ridiculous!

I'm glad to see people are wising up to this and selling FSBO, buyer's agents welcome, since they bring in clients. In my experience, many, but not all, listing agents just want the listing and then do nothing but wait for a buyer's agent to bring in a buyer. We can do that ourselves!

Hang in there!
  • December 13 2007
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Tborg,

I agree with you on everything you've said. You said you have an attorney to handle the legal aspects of selling your house, so you're well covered. My brother sells real estate and he said all you really need is an attorney or title company to handle all the paperwork. It's much less than hiring a listing agent! I think agents need to realize many sellers aren't willing to shell out 6-7% of a $700,000 dollar property. It's ridiculous.

I can see in the 60's and 70's getting 6% for an agent, when houses were $20,000. Now it's 607% regardless of the price of the house. It's ridiculous!

I'm glad to see people are wising up to this and selling FSBO, buyer's agents welcome, since they bring in clients. In my experience, many, but not all, listing agents just want the listing and then do nothing but wait for a buyer's agent to bring in a buyer. We can do that ourselves!

Hang in there!
  • December 13 2007
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The right thing is to show the home the might fit the buyer.
After speaking with various agents out of my office many say, if the commissions are less than 3% after the spilt it's not worth showing.
  • December 13 2007
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Profile picture for Alan May
>I can see in the 60's and 70's getting 6% for an agent, when houses were $20,000. Now it's 6-7% regardless of the price of the house. It's ridiculous!<

6% was the same large percentage in the 60's and 70's and was just as large a number to sellers back then. The only difference was that there were no discount brokerages, and no internet. Sellers didn't have a choice... they could either list for 6%, or they could stick a FSBO sign in their yard, and pray.
  • December 13 2007
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Profile picture for rockinblu
>>>I can see in the 60's and 70's getting 6% for an agent, when houses were $20,000. Now it's 607% regardless of the price of the house. It's ridiculous!<<<


I guess the cost of doing business and living is the same now as it was 35 to 45 years ago for agents since they are, after all, in a time capsule. Also, I am just as positive as you are that commissions are no way negotiable. ,:) Posts like this certainly do not do a lot to endear FSBO's with the RE professionals out there.
  • December 13 2007
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no they show homes buy what there buyer can afford. example if my buyer wants a 3 beds 2 bath 2 car garage block home for $170,000. and you had a wood home for $165,000. I would never show them that home because they want block not wood and I would not wast there time or mine showing them homes that they are not interested in
  • December 13 2007
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I am an agent in Westchester County and my office does not show listings on the MLS rather we market exclusively through our website.
  • December 13 2007
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Mark,
I just checked the Hinsdale area....there are currently 36 homes in the $600-800 range..yours being fairly near the middle of the pack. What is important to understand is that NOT ONE OF THOSE 36 HAS A CONTRACT ON IT. Agents have a lot of homes to choose from...and SO DO BUYERS. Here in the Chicagoland area, MLS exposure provides considerable EXTRA exposure to buyers through various company and agent websites through IDX (internet data exchange) and VOW (virtual office websites). What that boils down to from YOUR perspective is that, EVEN IF AN AGENT DID NOT WISH TO DEAL WITH A "FSBO", if their client finds you on another website and asks to view your home, the vast majority of agents would show it.

You are providing a competitive fee to the buyer's agent. The bottom line is this is a TOUGH MARKET. Things need to be done to help a home stand out to prospective buyers. While I agree that many agents have been "burned" by so many of the "limited service" operations (buyer's agent winds up handling many of the things that are generally not their responsibility in an effort to help insure a smoother transaction for their own BUYER client), I've been in this business in this marketplace for 25 years and I'VE NEVER heard of any sort of conspiracy to avoid showing a listing because of who put it in the MLS.

I'll also say, however, that if I have a buyer looking in a given price range....and I find A LOT of inventory that would fit their needs...we have to draw the line somewhere!!! I select first the properties that most closely match my buyer's requirements (irrespective of ANYTHING else) and those homes will be shown. If there are plenty more "near matches", and not enough time to show all of them, I'll eliminate those with difficult access, or any listed by an unscrupulous agent. All others are fair game.

JudiB
  • December 13 2007
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I noticed a post in this string that mentions that, as long has you have an attorney, "you're covered"...and I must disagree. An attorney's role in the process it significantly different than that of a competent agent (please understand...in our MLS, there are roughly 100,000 homes for sale...there are roughly 50,000 "agents"...some do one or two deals a year...some EVEN LESS...this is NOT the callibre I'm talking about).

An attorney knows the LAW...he knows the contract terms and the implications of those terms. What he doesn't know is the market...specifically as applies to you. How does your home show relative to the competition...how is it priced relative to sales and competition...are there issues with the home that impact saleability (I can site dozens of examples where "well-intentioned" sellers were totally clueless of issues in their own homes...BECAUSE they were their own homes). What kind of targeted exposure is the home getting (the infamous 3Ps of real estate don't work today...Put a sign in the yard, Put in the MLS, Pray!!!). When it comes time to negotiate the contract (many agents themselves DO NOT NEGOTIATE their own home sales or purchases because they cannot be objective...either shooting themselves in the foot....or giving away the farm!).

Unfortunately, most consumers also believe that what they "save" by going FSBO will go into their pocket. That ONLY happens if the home sells at the same time, for the same price, with the same ease, etc., as it would with competent care. Actually, that's not quite true...because the FSBO has to invest THEIR TIME, THEIR FUNDS IN MARKETING, etc. to achieve whatever results they get. And if they do sell to a buyer who has an agent (who makes their living by negotiating real estate transactions), chances are they will not fare as well in negotiations as they would if they had an agent negotiating on their behalf.

Just some thoughts & perspective......

JudiB
  • December 13 2007
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JudiB,

Thx for the comments. Obviously we are doing the 3P's and are also trying other avenues of marketing - including Zillow, Craigslist, emails, etc.

The feedback that we have rcvd from agents that have been through it has been positive. It is clean, shows well, good room sizes, not too much clutter, etc. We are aware of the stuff that does not show well and think we have priced it accordingly.

We have a number of realtor friends in our town who have said that they have had zero showings on their listings for months. I know the market is slow and I also know there is a large supply of homes on the market in Hinsdale.

I also know that end of Nov thru early Jan. is very slow time. We have had a relocation buyer come back for a second time, so we are hopeful that we may at least see an offer in the coming weeks. The agent showed this buyer 20 homes before Thanksgiving. They came back around Thanksgiving to 3 homes (we were one of the 3).

Again, I do appreciate everyones feedback. I have been reading some of the other threads on FSBO's and blacklisting - interesting stuff. Being a realist, I know everyone alwasy does what is best for them personally, so if an agent has previously been screwed by a FSBO, the tendency to do it again is reduced. That is why I was trying to determine that if a home was in the MLS, are agents required to present it to their clients.

Thx.
  • December 14 2007
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Rockinblu,
You have a very valid point as to the cost of living today vs. 30 years ago.

I think the other valid point to be made is that if someone (agents included) is selling something - for this discussion a home - if they can sell it by themselves without paying any commission, good for them, more money in their pocket. If they can sell it and pay only 1 commission, good for them, they just make a little less. If they sell it and pay 2 commissions, good for them, and good for the people receiving the commissions. Depending on the sellers motivations and needs - paying commissions might be a good thing for the seller.

With the increase in technology and the ability of the consumer to be much more educated on all aspects of a purchase (from homes to cars to flat screen tv's to medical information) - the way we buy, is changing. I never thought that I would be the guy that went on the web to buy a flat screen tv, but after comparing prices, no tax, free shipping, etc - it was obvious the route to go. The fact that there are so many agents posting on Zillow and Craigslist makes me believe that there is a fundamental shift happening in the residential real estate market.
  • December 14 2007
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There are some 13,000 listings in MLS at my Board. Whould you like to go see them all? After looking at more than 10 homes you will forget half of the details about the first home you looked at. Showing to many homes is counter productive. A good agent will ask the right questions of the buyer (and listent) to know what they want. No I do not show every house, but I do not base it on commission.
  • December 14 2007
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James,

I agree with you that after seeing multiple houses in one day, things start to get jumbled together. But I also know within about 5 minutes if a home is worth a second look. So after seeing 10+ homes one day, you can narrow that down to 2 or 3 for second visits, which is manageable. I encourage people to bring video/digital camera (as I do when I look) to remember the things I like. That is also what I liked about iggyshouse.com, as they allow you to post as many pictures as you like. If you have a good house to show off, then I think the more info/pictures the better. Your thoughts?
  • December 14 2007
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Comment to Michael - seems odd that agents in your office do not find anything less than 3% acceptable to show a home. There are many agents taking 1% listing commissions for a total of 3.5%. Must be good pickin's in NY!!!
  • December 14 2007
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I am an agent in Orlando, Florida. I'm sure that your home matched a buyer's exact requirements I would go out of my way to make sure they saw it. There is, however, an agency issue here which hasn't been discussed in earlier posts. When I represent a buyer and work with a limited service listing seller like yourself, it poses some problems with agency relationships. You see often times sellers such as yourself rely on the buyer's agents for advice with the contract. If any advice is given to you by us, we are subjecting ourselves to liabilities. Most seasoned agents realize this. As a seasoned agent, I do realize that a limited service listing such as yours makes it more difficult on the negotiating side, set aside any agency problems. You don't have a coach on your side helping you and often you do rely on us to help you through a difficult contractual experience. At the very least, you should hire a good real esate attorney which can cost more than paying a reputable agent in the end, since most attorney's charge by the hour.

I cannot say for sure if you're not getting all the showings you might have gotten from a traditional full service broker, however, I will say that you may have some agents fear, (as a previous posted suggested), that they may be negotiated out of the transaction. In a hot sellers market when there are too few lisitngs, this limited service arrangement can work better I'm sure. We don't have to show any listing in the MLS, there is no law that I'm aware of. As an independant contract, as I'm sure most of us agents are there is nothing mandating us to show anything but our own listings if we should so choose.

Knowing what I know, I would agree with other previous posts from agents who say you'll probably do better with a full service agency, one who has someone on your side representing you. Statistics indicate that a Realtor listed property fetches much much higer than any anticipated savings you might have.
  • December 14 2007
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Scott,
Thx for the comments. I guess I am in the minority, that I do not need assistance from a buyer's agent to help me with the contract. I have done this before and have negotiated some pretty cumbersome deals. I also do have an attorney to review the actual agreement.

I am still struggling to understand what will be better represented by a listing agent, on my behalf. You are the second agent that also has indicated that Realtor listed prop's fetch higher amounts than the savins I might get with reduced commissions. Do you have some specific info to share on this? I asked the last agent, with no response.

I am open to many things, but I do like to have some facts to go on, not just cocktail talk about what happens.

Thx again.
  • December 14 2007
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That's too bad Michael. A commission is always negotiable.
  • December 14 2007
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