And when you factor in the realtor's 3% commission (6% if you are paying both sides of the transaction), the 3.4% is either a more or less a wash or a better deal.
No, Brent, not necessarily. For instance, many (maybe most) FSBO properties in Greater Boston are listed on the local MLS. Also, FSBO properties make up a small percentage of the market. It's quite different when the largest real estate brokerages in the country want to keep listings in-house.
Ironically, more than often, a FSBO is overpriced due to pride of ownership - because the FSBO seller does not make adjustments to the value like a realtor would do with a CMA. And sellers who list with a realtor who takes a pocket listing won't usually get the benefit of a CMA either - since if they did, they wouldn't be netting 3.4% less. Knowledge is power.
Thank you Rich! You are 100% correct-Private listings serve the best interests of the listing brokerages, not the sellers. This greedy practice erodes what little trust consumers have in the real estate industry.
I recently had a conversation with a private listing agent. I asked, “What criteria do you use to determine which buyers get access to your listings? Are you at all concerned that you are violating fair housing regulations?”
Private listings are about sales, not advocacy. I hope Senator Warren is successful in ending this deceitful practice.
I’d love to see a revamped real estate industry where consumer advocacy, not sales volume, is the primary objective in all transactions.
Isn't a FSBO sale technically outside the NMLS?
And when you factor in the realtor's 3% commission (6% if you are paying both sides of the transaction), the 3.4% is either a more or less a wash or a better deal.
No, Brent, not necessarily. For instance, many (maybe most) FSBO properties in Greater Boston are listed on the local MLS. Also, FSBO properties make up a small percentage of the market. It's quite different when the largest real estate brokerages in the country want to keep listings in-house.
Ironically, more than often, a FSBO is overpriced due to pride of ownership - because the FSBO seller does not make adjustments to the value like a realtor would do with a CMA. And sellers who list with a realtor who takes a pocket listing won't usually get the benefit of a CMA either - since if they did, they wouldn't be netting 3.4% less. Knowledge is power.
Thank you Rich! You are 100% correct-Private listings serve the best interests of the listing brokerages, not the sellers. This greedy practice erodes what little trust consumers have in the real estate industry.
I recently had a conversation with a private listing agent. I asked, “What criteria do you use to determine which buyers get access to your listings? Are you at all concerned that you are violating fair housing regulations?”
Private listings are about sales, not advocacy. I hope Senator Warren is successful in ending this deceitful practice.
I’d love to see a revamped real estate industry where consumer advocacy, not sales volume, is the primary objective in all transactions.