Thursday, June 3, 2021

Realtors still have a few tricks up their sleeves--"Whisper listings"

 It once looked as if the growth of the internet, and increased access to home listing databases, would substantially weaken the grip of licensed Realtors on the residential housing market in the U.S. Those predictions proved premature: Realtors have kept a very large market share, while earning high fees as prices rise (based on a percentage of the sales price).  

The WSJ has part of the ongoing story:

In Tight Housing Market, Thousands of Homes Are Reserved for Certain Buyers. ‘Whisper listings,’ made directly to select customers, are growing at a time when housing inventory is near record lows  By Nicole Friedman

"In the vast majority of transactions, an agent lists a home for sale on a local database and markets the property widely to drum up interest and get the best price. But in certain cases, a broker will show an unlisted property to a small circle of potential buyers more exclusively, often in hope of getting a deal done quickly.

"These private sales are known as pocket listings, or whisper listings. They have been around for many years. But they are on the rise now even though the National Association of Realtors adopted a rule last year aimed at discouraging their use following complaints from some of its members.

"The new NAR policy requires agents to add listings to their local database within a business day of publicly advertising the listing. But there is a notable exemption: Listings can still be kept off the database if they are only shared within one brokerage, called an “office exclusive.”

No comments: