Friday, March 1, 2013 • 3:45pm
I am a huge advocate on exposing listings to as many potential buyers for a property. It allows buyers to have access to a home for sale and gives every Realtor the opportunity to show the home. This in turn, gives the seller the greatest chance of obtaining their highest selling price.
Sounds simple and yet I am seeing one or two companies out their asking (almost telling)their agents and in turn, those agents asking their sellers, to sign a “Waiver of Broker Cooperation” to list the homes with that company versus list it so other companies have the opportunity to sell it, also known as cooperation. The result is less exposure to potential buyers that equals possible lower selling prices.
Let me explain. Most listings are known as “Exclusive Right to Sell”. In other words, the listing agency has the exclusive listing to market the property but must distribute the listing to its multiple listing service in a timely manner, so it is open to other real estate companies to show their potential buyers (HINT: when interviewing listing agencies, always ask the number of ML systems a listing is on – 2 is much better than 1), and to post it on their company websites, too. (Internet Data exchange). However, if a seller agrees to the aforementioned waiver, it prevents the listing to be posted on MLS systems, additional company websites and more so, the maximum pool of buyers to see a property and make offers on that property.
It is not to say that a homeowner may want the waiver for various situations, but if not for anything specific, such as security, anonymity, etc., it is the wrong thing to do for both buyer and seller. But as per real estate law and the Realtor Code of Ethics, it is the seller’s decision, not the Realtor’s.
So why would a real estate company push this. They will tell you that it better controls a transaction and keeps everything in one place, but the answer is – GREED. When cooperating with other brokers, the fee paid towards the sale is split between the seller’s agents and the buyer’s agent, whether it be with one or two companies. Conversely, if the waiver is signed, only one company receives the entire fee. Most cases for the same amount. Why does the greed come about without any concern for the client? It is possible they want to take advantage of the perceived buyer’s market we are experiencing or the company has grown a yellow stripe on its back and is afraid of losing market share or needs the income because of greater competition for that commission dollar.
Whatever it is, beware of what a real estate company is trying to sell you. You, as the seller, are the client, and the service you deserve is that of obtaining the highest price your home will obtain in this market. The only way that can occur is with your home having the highest exposure it can get.
If you are looking to sell your home for maximum exposure and selling price, contact Coccia Realty, of Madison at 973.377.4400. Also visit their website, or stop by their office at 49 Main Street, in the heart of the Historic Madison Business District.
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