Why exclusive offices are not the best option for the real estate industry

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When there is a lot of competition and a surplus of real estate agents, we start fighting each other. This is why the concepts of Office Exclusives, Designated Agency and Dual Dive are not suitable for this broker.

There are some services that I do not want to provide to our clients, and I will not, unless someone forces me to. Not yet. We are not double agencybut I’ve always said that I would throw an exception if necessary. I say this because I cannot foresee every situation that we may face.

So far, we have not had a double agency deal. Double agency allowed in Minnesota, and as a double agent, I cannot defend either side; I am becoming a facilitator. A double agency also occurs when two agents run by the same broker work with a buyer and a seller in the same transaction.

Buyers who are interested in our listings are welcome competitor… The buyers I recommend work directly with brokers for small real estate companies in the area.

What else are we not going to do? An internal list, that is, announcements that are only broadcast to other agents in the office. I call them internal pocket lists, but I’ve heard they are called “exclusive offices.” In this market, what kind of buyer would not do you like office exclusives? They don’t make it to the MLS, advertised and sold, but never go public.

Internal pocket lists are just another form of double acting. While the clear collaboration policy that came into effect last year requires us to put our listings on the MLS, they left a big loophole for internal listings.

If fair housing complaints against listing agents were more common, an internal pocket listing would force our insurance companies fair housing advocates and the legal departments of the real estate company are crazy.

In the real world, a buyer who will never have the opportunity to buy a pocket listing will never even know that a house has been put up for sale. This buyer might not even know that if she knew the right people, she could buy a house.

Some real estate companies are promoting the idea of ​​creating agency networks within their company. How can they find a buyer faster because they represent more buyers. They tell buyers that they can find them a home faster because they have more offers.

When I list a house, it goes to the MLS and from there it goes to websites around the world. It is seen by millions of people, including real estate agents. My agent network is much larger than one company.

There are homeowners who choose to stick with the fact that their house is for sale a secret… The real estate agents I discussed this with said they provide a valuable service to their clients while maintaining a listing within the company and outside the MLS.

Selling homes is marketing and advertising. Selling internal pocket lists can be networking related, and buyers who know the right people can buy a home. It seems to work – it’s all about Who you know not what kind you know. This is a great concept for people who benefit from the system.

The home sellers I’ve talked to often believe that internal pocket listings will save them money if their agent also works with the buyer. The reality is that in most cases, the listing agent gets all the commission that the seller agreed to pay.

Some home buyers feel they have an advantage if they work directly with a listing agent and that they will save money as well.

According to a consumer group, more than 14 percent of all home sales in the area are through double agents. This is actually unfortunate considering that there are more agents than houses for sale. There are always experienced agents who can represent any buyer, so the buyer does not need to work with a listing agent.

Our state-owned association of realtors lobbies for an “appointed agency.” Within a designated agency, two agents of the same broker can represent the buyer and seller in a transaction. It is obvious to me how real estate companies, especially large ones, can benefit from a designated agency.

The arguments that we are leading among ourselves for and against are becoming more and more fierce. There are several large companies in the area that largely control all aspects of the industry and are well represented in associations. If the designated agency is beneficial to these companies, this will happen.

I do not understand the benefits of a designated or dual agency for consumers, but I do understand the benefits for real estate companies, especially those with many internal pocket listings.

The agents themselves practice a designated agency, protecting their clients, even if both clients have the same broker. This happens all the time. The agency is misunderstood.

Some speculate that the designated agency is harming small real estate companies. I do not think so; I find it more harmful to consumers and any agent looking for clients.

We tell consumers we will represent them and how we can help them in what could be the biggest deal they’ve ever made, while at the same time we look for ways to be a two-agent middleman.

I don’t even want to imagine what a lawsuit looks like when one company represents both parties, and one party hides the defect of ownership from the other, even if it is a designated dual agency. Situations with multiple sentences must be very difficult for double agents.

There are many people who don’t trust real estate agents or realtors. In times when there is a huge surplus of real estate agents, we tend to start fighting each other when it comes to issues affecting market competition.

In short, pocket lists, designated agency, and dual dive are not the best options for the industry.

Teresa Boardman – Realtor and Broker / Owner Boardman realty in Saint Paul. She is also the founder StPaulRealEstateBlog.com



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