I recently attended a webinar explaining the Gallagher Amendment, and how its repeal could potentially affect our property taxes. This hour-long video will also include some information on the federal governments proposed tax policies and 1031 Exchanges for investment properties.
It sounds like something you might learn about on Sesame Street, but it's actually a policy enacted by the National Association of REALTORS® (NAR) in 2020. In keeping with its Code of Ethics, this rule was enacted by NAR to protect the consumer and advance the interests of home buyers and sellers.
A pocket listing is a property that an owner has expressed interest in selling and has given their agent permission to begin talking about but not list on the Multiple Listing Service (MLS). Sometimes there are good reasons for a client to want to do this. Perhaps they do not have a replacement home yet and are looking for a buyer who allow them to remain in the home until they have somewhere to go. Until an ideal situation presents itself, the owner is not quite ready to sell and move. Or maybe there is an occupant in the home who cannot accommodate showings and open houses and would rather quietly and quickly sell the home off-market.
Coming Soon listings are often used to generate anticipation and excitement about a new property for sale, so when the showing schedule opens up it fills up just as quickly. However, this approach can be abused when it's used specifically for the listing agent to find unrepresented buyers before the property is available to other agents, thus avoiding the obligation to share the commission with a buyer's agent.
There is an argument that these private sales hurt consumers in general, by depriving buyers of purchase opportunities before the sale, skewing data after, and not providing sellers with adequate market exposure which could result in a higher price than originally sought. Without a central database of properties for sale like the MLS, information can be fragmented and hard for the consumer to find and understand.
The MLS is an extremely important and useful industry tool. Agents who participate in the MLS already agree to cooperate with other members to find buyers and get their listings sold. NAR has attempted to level the playing field by requiring members to list their properties in the MLS once they are marketed to the general public. This ensures that the listing will be available to the largest group of agents and potential buyers, and minimizes business practices that are in the best interest of the agent or brokerage firm rather than the client.
Pocket listings may be used when the marketing of them is kept within a brokerage firm, as there are still situations when this may be in the client's best interests and at their direction. A Coming Soon listing must be put into the MLS within one business day of being marketed to the general public.
It makes sense to me that both sellers and buyers would benefit from the most eyeballs looking at the largest MLS repositories in each sales area. I've run across many properties in my research that were sold off-market, and sometimes it looked to me like the seller left money on the table. Was selling price always their biggest priority? Perhaps not, and I'll give the benefit of the doubt to those handling the transaction that the client's best interests were served. If you're a REALTOR® like me and not just a real estate agent, you've taken an oath to uphold the Code of Ethics. I believe that the Clear Cooperation Policy clarifies the duties of the REALTOR® and is a beneficial change for the consumer.
We continue to speed along the real estate highway, stopping to catch our breathe and grab an occasional smoothie.
If you need more specific sales data for your neighborhood or your home, please contact me for your no-obligation Opinion of Value.
Contact me for a showing! At $324,900 I expect it'll be gone before the weekend!
Upstairs, the primary bedroom has a walk-in closet and updated 5-piece bath with quartz countertops. The whole-house fan works great to cool the house down between seasons. If you like it a little colder, the new central air conditioning unit can be counted on for years to come. In addition, the three other upstairs bedrooms have fans and share a roomy full bathroom.
You probably know demand is high in the Boulder Valley School District. Not to mention the great amenities that Rock Creek, Flatirons Mall and downtown Louisville offer only minutes away. Asking price is $820,000. There is an offer deadline of Monday, May 10 at 5pm, so don't wait to call me for your private showing!
