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« on: May 28, 2008, 11:19:39 PM »
NYC Native, I tried to follow your discussion and rebuttal to jmp99’s post.
From my reading, jmp99’s overall suggestion to sellers is to maximize their sale price AND decrease time on the market by exposing the property to the most number of potential buyers. To achieve this goal, jmp99 suggested utilizing the service of larger real estate agencies that are willing to share the commission with any broker.
With all due respect to you, jmp99’s post did not state that only realtors from the larger agencies can become a member of the multiple listing service (MLS). In fact, unless I’m mistaken, jmp99’s post did not discuss the MLS at all. Therefore, your lengthy critique of the MLS is probably not that relevant (perhaps even irrelevant) to your rebuttal to jmp99’s post.
However, since you did post some of your opinions regarding the MLS, I will also jump in with my thoughts on the subject. You stated that you were against “the falsehood and attempt to mystify membership to the MLSâ€. While I can certainly see that MLS realtors may not be any more professional than those not on the MLS, I believe (and correct me if I’m wrong), the chief criticism of the MLS from the consumer standpoint is the very anticompetitive nature in which they are set up. More than a few MLS systems have been targets of federal antitrust law suits because of their anticompetitive nature that renders a great disservice to consumers. Agents willing to take smaller commissions have been barred from the MLS, along with agents willing to provide less than the full range of service typically provided by realtors. Internet-based real estate agencies have also been barred from joining the MLS. All this seems to be missing from your critique of the MLS.
In addition, I don’t really see your point about jmp99 being “dead wrong†about local realtor’s unwillingness to work with other real estate agents and their desire to keep the full commission. You stated yourself that local realtors co-broker properties but only with other local brokers. This seems to the PERFECT example of the anti-competitive nature of local real estate agents that jmp99 is complaining about!
In fact, I wonder how many local real estate agents go to the trouble of explaining to their client (the seller) that the agent will go ahead and screen out any offers (regardless of the quality of the offer) or interests from potential buyers that are not represented by the few local agencies in JH. That hardly seems in line with a real estate agent’s fiduciary duty to a client-seller, unless it is fully disclosed up front. HOW MANY SELLERS WOULD BE WILLING TO IGNORE AN OFFER SIMPLY BECAUSE IT WASN’T BROUGHT TO THEM BY A LOCAL REALTOR? I CERTAINLY WOULDN’T!
I also disagree with your defense of local real estate agents over agents from larger city-wide agencies. There are certainly some agents from larger agencies that are simply clueless, but I just don’t see the supposed advantage that local brokers can provide. You seem to suggest that local brokers have the inside scoop on buildings and will somehow make the sale go smoothly. Speaking as a co-op board member myself, I think that is a much too generous advantage you seem to award yourself. A prospective buyer’s financials comes first and will always be paramount in my building. No real estate agent can miraculously help the process in my opinion when it comes to a prospective buyer’s financials…no matter what kind of inside scoop they think they might be in possession of. Also, being pre-qualified means nothing to a co-op board. It may indicate to an agent that a prospective buyer is serious, but a year ago, even a door-knob can get pre-qualified…that has no bearing on a buyer’s ability to pay his/her mortgage! Therefore, the advantages that a local real estate agent may provide in terms of his ability to get the inside scoop is minimal at best! A hard-working agent from the larger agencies can get a hold of such information too!
Your arguments seem largely based on what is good for you and other local brokers. As jmp99 points out, YOUR INTERESTS AS A LOCAL REAL ESTATE AGENT MAY NOT BE ALIGNED WITH A SELLER’S INTEREST! It might be a terrible waste of your time and resources to show an apartment to someone who is only window shopping or not pre-qualified, but a seller really cares primarily about getting the highest price in the least amount of time!