Hi this is the first time I post but have been reading for a while. We are trying to buy in Carmel Valley and have gained a lot of good information here already. At the open house, my husband and me were told that around 35% of homes in CV are sold before listed. Another agent told us they have a pre market scheme to help buyers find a home without getting into a bidding war. I asked why would the seller do that because it will be better to list it and get the best price. The agent said because seller can save on the listing fee. So I finally asked my own agent and her answer is similar to what I thought. Most seller prefer listing their property in an open market and she doesn’t believe seller can save the listing fee because it is still a listing. So what is the truth? How common are homes sold before listed? We have been looking for months but still hasn’t seen a lot of homes we like. Will appreciate your input. Thanks .
I’ve seen quite a few short sales in the last few years (including 1-2 recently) that immediately went onto MLS as contingent. Broker lists them under market, gets a “friend” to make an offer, friend buys it and flips it for 1.5x the price a few months later, gives broker a kickback.
Unethical and illegal as hell, but real-estate is a crooked game.
As far as regular sales, if the broker can find a buyer at an acceptable price before it goes to MLS, why wouldn’t they save the MLS listing fees?
We own investment property in Carmel Valley, and, through the grapevine, have heard this is going on.
I’m sure some of the realtors on this board will be able to give you some factual feedback, and, perhaps, some pointers as to how you can proceed from here. Hope it works out for you.
It is a grey area but if you apply logic to the situation, any seller who would allow the home to be sold without it being on the open market for a few days is more then likely leaving money on the table. Furthermore no listing agent is going to forfeit the listing commission regardless of when the home is sold. The truth is that the listing agent wants you to use him as a buyers agent, now he may let you know when he has listings available before they go on the market. However just because he does that, doesn’t mean his sellers will accept your offer. Why would they? Conversely if you do make an offer on a home before it hits the market, how do you know that you are not overpaying?
So in my opinion, what your agent said is most likely the truth. Carmel Valley is a very tough market for any buyers. What decent homes come available there, will either be overpriced or receive multiple offers.
You simply need to stay diligent and patient. If you do see something you like you will need to come in very aggressively given the locale you are searching for.
Speaking from New York, Manhattan really doesn’t have a functional MLS (or at least one that most brokers agree to use). Most apartments for sale are listed in the real estate section of the Times, and brokers having open houses every weekend or just showing apartments to whoever happens to call (regardless of whether they bring a broker) is pretty common.
There are more dual-agency sales, and FSBOs tend to also end up in the Times, so it levels the playing field between by-broker and FSBO. If SD gradually moved to a non-MLS system, it would actually be good for everyone except perhaps the brokers, who’d no longer have as much of a monopoly.
.
