I just read an article opposing Zillow’s position on so-called pocket listings. Pocket listings or listings that are not marketed on the MLS results in brokers being able to double end deals.
Getting paid on both sides of the transaction is unethical and harmful to consumers according to a group known as Consumer Advocates in American Real Estate. They claim it’s a “harmful practice that thrives on breaching trust, deceiving clients, and intentionally putting them in a situation of duress and then profiting from it”.
I disagree with this argument completely because there are many ways of marketing a property effectively.
After explaining the pros & cons of not using the MLS to market their homes, ultimately it’s my clients choice to have their homes listed on the MLS.
I take this position because there are many other ways of marketing listing to other brokers and consumers. Let me explain how.
- Marketing to my CRM
- Postcard marketing. For about $50 I can reach every agent in the state..
Of course the different MLS’s around the country say no. Is it because they are afraid of losing all the fees they collect from us brokers. For very little value.
That’s why I was infuriated after reading an article by Doug Miller a consumer advocate. Who said “pocket listings exist to generate a double fees & deceive the consumer”.
So my question to Doug is why is it wrong wanting to earn more money?
All sellers are required to sign an agency disclosure form where the pitfalls of not listing on the MLS is explained in detail.
Always give full disclosure to your clients, explaining the benefits and well as the bad of pocket listings.
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