If the MLS goes away, the cost to market properties goes up. By a lot. So sellers agents would have to come out of pocket to market properties. So the 2, 2.5, 3% they are currently paying buyers agent's are getting doesn't disappear, it just shift to other advertising channels.
CCP = Clear Complete Protection (I heard this was the original acronym until someone on the board suggested a different acronym)
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Just like commissions has two levels (settlement (legal) and ethics), so does CCP. I've never, for a single minute, thought CCP was a fair housing issue. It's not...and not a single person has given a legit reason why it is.
HOWEVER....the free market will figure it out? Um...how? Unless the 'free market' knows a property is available, how can it be displayed? Permission, on some level, needs to be given for the listing to be public.
If CCP is no longer the rule and I want to keep a listing private or in house and not allow it to be displayed publicly, how does the 'free market' get my listing data without being sued for copyright infringement.
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I'm not attorney...but If I don't allow my listing data to be public and it's on a public site then it becomes a legal issue. How does a free market display listings when 1) there's no way to know the listing is available and 2) no permission was given?
It's 100% not impossible to keep a listing 'secret'. It's not even hard.
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Commissions in the MLS (before the changes) were ALWAYS negotiable unless on thing happened: a full price offer was provided. Anything less than full price could be negotiated, even commissions. When I was full time, my counteroffers were exclusively based on net. "Here is my net counteroffer, Buyer's Agent. I don't care how it looks but the net has to be X." It's funny how the conversation with buyers will change when the agents commission all of a sudden becomes negotiable.
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The listing agent in MANY cases does NOT know more about the property than the buyer's. This is such a myth. Super simple example. I listed a property 4 months ago. The buyer presents and offer. How knows more about the property: Me...who hasn't been in the property in four months...or the buyer who has been to the house multiple times **in the last few days**?
Listing agents are viewing the property so they can figure out price and fill out the input sheets. Buyers are looking at the house because they want to buy it. In other words, listing agents and buyer agents are both looking at the house with a different purpose. With few exceptions, a buyer is paying a ton more attention to the property than any listing agent does.
Bottom line...a seller does NOT (necessarily) know more about the property than anyone but the home seller.
_______
Rob: "Why use the MLS at all". The answer was poor. A simple, "Because it's a tool that helps sell the property when not using it isn't working." Easy. It just doesn't' always need to be the **FIRST** tool used but it should aways be available.
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At 43:25 "My agent said it's sold and gone," said the buyer. Why did the agent say this to their buyer? Because the agent didn't find it active in the MLS and just assumed it was no longer on the market." I've researched this exact scenario and any non-Realtor MLS listing is going to come across this real-life issue. There is a relatively easy solution, though.
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Great conversation. A few holes in the logic but educational to watch.
We have the COE and so we're all ethical, but we need CCP because we are all unethical -- 23:00 in podcast. Love it and love this guy. Great podcast.
I would love a podcast expounding a little more on what happens if MLS doesn't evolve and portals are the marketplace in 3-5 years
If the MLS goes away, the cost to market properties goes up. By a lot. So sellers agents would have to come out of pocket to market properties. So the 2, 2.5, 3% they are currently paying buyers agent's are getting doesn't disappear, it just shift to other advertising channels.
CCP = Clear Complete Protection (I heard this was the original acronym until someone on the board suggested a different acronym)
_____
Just like commissions has two levels (settlement (legal) and ethics), so does CCP. I've never, for a single minute, thought CCP was a fair housing issue. It's not...and not a single person has given a legit reason why it is.
HOWEVER....the free market will figure it out? Um...how? Unless the 'free market' knows a property is available, how can it be displayed? Permission, on some level, needs to be given for the listing to be public.
If CCP is no longer the rule and I want to keep a listing private or in house and not allow it to be displayed publicly, how does the 'free market' get my listing data without being sued for copyright infringement.
______
I'm not attorney...but If I don't allow my listing data to be public and it's on a public site then it becomes a legal issue. How does a free market display listings when 1) there's no way to know the listing is available and 2) no permission was given?
It's 100% not impossible to keep a listing 'secret'. It's not even hard.
_______
Commissions in the MLS (before the changes) were ALWAYS negotiable unless on thing happened: a full price offer was provided. Anything less than full price could be negotiated, even commissions. When I was full time, my counteroffers were exclusively based on net. "Here is my net counteroffer, Buyer's Agent. I don't care how it looks but the net has to be X." It's funny how the conversation with buyers will change when the agents commission all of a sudden becomes negotiable.
________
The listing agent in MANY cases does NOT know more about the property than the buyer's. This is such a myth. Super simple example. I listed a property 4 months ago. The buyer presents and offer. How knows more about the property: Me...who hasn't been in the property in four months...or the buyer who has been to the house multiple times **in the last few days**?
Listing agents are viewing the property so they can figure out price and fill out the input sheets. Buyers are looking at the house because they want to buy it. In other words, listing agents and buyer agents are both looking at the house with a different purpose. With few exceptions, a buyer is paying a ton more attention to the property than any listing agent does.
Bottom line...a seller does NOT (necessarily) know more about the property than anyone but the home seller.
_______
Rob: "Why use the MLS at all". The answer was poor. A simple, "Because it's a tool that helps sell the property when not using it isn't working." Easy. It just doesn't' always need to be the **FIRST** tool used but it should aways be available.
_______
At 43:25 "My agent said it's sold and gone," said the buyer. Why did the agent say this to their buyer? Because the agent didn't find it active in the MLS and just assumed it was no longer on the market." I've researched this exact scenario and any non-Realtor MLS listing is going to come across this real-life issue. There is a relatively easy solution, though.
_______
Great conversation. A few holes in the logic but educational to watch.