Sellers with agent seek offers before listing on MLS.

[holymoly]

I got an email from a RE agent that starts: "We have just listed two properties that are being readied for sale under the Multiple Listing Service banner. You will find details on www.morethanahome.ca (featured properties). The Sellers would be happy to consider offers before we take it to the Toronto Real Estate Board web site."

Why would sellers or agents want to consider offers pre-MLS-listing? Does it save them money? I thought MLS = more potential interest = more chance of multiple offers = $$$.

 

[JimWhitelaw]

One of the Realtors here can probably provide more details, but I can think of two reasons they`d want to sell without listing on MLS:

1) The agents pay a fee to list on MLS. I don`t know how much; I`m guessing $500 or so.
2) No need to share the commission with a buyer`s agent if they sell to their own client.

 

[RedlineBrett]

QUOTE (JimWhitelaw @ Jan 13 2010, 09:02 AM) 2) No need to share the commission with a buyer`s agent if they sell to their own client.

This is the main reason.

The other is that they have buyers that they want to provide an exclusive offer to. It makes people that recieve the email feel special for being the first to know about the property.

The brokerage is already paying the fee to MLS but the listing is just an `exclusive listing` and isn`t available for viewing or searching by any other brokers or the public yet. Very rare as most sellers want the widest possible audience for their property.

 

[housingrental]

More common on niche and commercial properties. And sometimes "being list for X more in X days if not sold"

 

[tahani]

or the agent is adverting and trying to double end the sale before it goes MLS.

 

[holymoly]

Interesting. Thanks for responding, all.

 

[gwasser]

QUOTE (JimWhitelaw @ Jan 13 2010, 09:02 AM) One of the Realtors here can probably provide more details, but I can think of two reasons they`d want to sell without listing on MLS:

1) The agents pay a fee to list on MLS. I don`t know how much; I`m guessing $500 or so.
2) No need to share the commission with a buyer`s agent if they sell to their own client.


There are a number of conditions to be fulfilled for a MLS listing as specified by the Canadian Real Estate Association.
Your idea that the seller doesn`t want to share the commission could be one reason - maybe the owner has only offered a minimal commission. But you wonder if the realtor is acting in the best interest of the client as he is supposed to. Overall MLS is the most efficient way to market a property, so I can not quite see why he would use this e-mail trick.

Also, the property can only be listed on MLS if there is a written listing agreement with a minimal listing period of 60 days.
Finally, to be listed on the MLS a property should be accessible for viewing within a 24 hour notice period.

 

[EdRenkema]

QUOTE (holymoly @ Jan 13 2010, 08:49 AM) I got an email from a RE agent that starts: "We have just listed two properties that are being readied for sale under the Multiple Listing Service banner. You will find details on www.morethanahome.ca (featured properties). The Sellers would be happy to consider offers before we take it to the Toronto Real Estate Board web site."
Why would sellers or agents want to consider offers pre-MLS-listing? Does it save them money? I thought MLS = more potential interest = more chance of multiple offers = $$.

I just sold a student rental because another one in the same complex went multiple offer almost immediately. When I talked to my realtors they said there was nothing for sale in the neighbourhood recently. They advised me to list MLS to create another multiple offer scenario. They were the listing agents on the previous property so they had buyers in hand that had lost out. I`m certain they sent out emails to those who lost out on the first one. The reason for going MLS was to create that potential for multiple offers and indicate to the potential buyers that it would.

Here is the result:
The first property listed for $209,900 and sold multiple offer for $226,000
Mine listed Dec. 15th-am for $209,900 and by Dec.16th pm had 8 offers, sold for $228,000 - closing Today!

 

[holymoly]

Thanks for the additional info. And congratulations, Ed!

 

[housingrental]

Ed`s story is fantasticAnd its actually even better than he`s mentioned
The first property was also setup as a 2 unit place and had a higher rent roll and higher potential rent roll
There was some justification for it having a higher value than Ed`s
Prior to these two selling recently other ones had sol for apx. 15++% less.... Waterloo market hasn`t risen 20% in last few months

Ed has done very very well for himself
I`m happy for him
In hindsight I`m unhappy I didn`t seize on the same opportunity he did at the time to get the place originally


QUOTE (EdRenkema @ Jan 14 2010, 12:10 PM) I just sold a student rental because another one in the same complex went multiple offer almost immediately. When I talked to my realtors they said there was nothing for sale in the neighbourhood recently. They advised me to list MLS to create another multiple offer scenario. They were the listing agents on the previous property so they had buyers in hand that had lost out. I`m certain they sent out emails to those who lost out on the first one. The reason for going MLS was to create that potential for multiple offers and indicate to the potential buyers that it would.

Here is the result:
The first property listed for $209,900 and sold multiple offer for $226,000
Mine listed Dec. 15th-am for $209,900 and by Dec.16th pm had 8 offers, sold for $228,000 - closing Today!

 

[luckyluciano]

<br />In addition to all the above;<br /><br />A)most sellers don`t truly understand the MLS is the best exposure. They are simply happy if they get "what ;they want " and they will not know what they could have gotten until someone else sells for better.<br />B)some sellers do not want the hassle od dozens of lookers trudging through their property. <br />C)sometimes the agents do not actually have the listing and the sellers say to them "if you have a buyer"<br />D)part of the definition of market value is that the property is to be properly exposed to the market for a reasonable period of time. In a hot bubble market this is accomplished by holding back offers for 1 week to 10 days giving most buyers a chance to view and bid.