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REALTOR®: REALTORS® educate consumers about disadvantages of off-MLS listings

Wednesday, June 5, 2013

Off-MLS listings are not new to the marketplace, but these days agents are seeing more properties marketed in this manner, especially at a time when inventory is at an all-time low and new listings continue to decline. Home sellers should be aware that the practice can adversely affect their goal of getting the best price reasonably possible for their homes.

What is an "off-MLS" listing?

An off-MLS or pocket listing is a property that is marketed without being listed for sale on the multiple listing service (MLS). A property that is listed on the MLS has the advantage of being actively marketed to every real estate agent who belongs to that MLS and to their vast network of potential buyers. Active marketing on the MLS usually includes open houses, broker tours and inclusion of seller's property in the MLS's download to various real estate Internet sites that are commonly used to search for properties.

An off-MLS listing generally is marketed by a single agent to one or a select few potential buyers. The marketing pool can be so small that in some cases, other agents within the same brokerage or brokerage office may not even be aware that a fellow agent has an off-MLS listing.

Are off-MLS listings illegal?

They are not illegal if the listing agent fully discloses the pros and cons to the home seller and follows rules that are designed to protect consumers. To keep a listing off the MLS, a listing agent who is a participant of an MLS is required, under the rules of most California MLSs, to obtain a signed certification from the seller that he or she does not wish to sell the property via the MLS.

Why would a home seller agree to an off-MLS listing?

Off-MLS listings sometimes are requested by sellers to maintain their privacy and/or limit viewing of their property to a select individual or individuals with the financial wherewithal to purchase.

Are there reasons a home seller should avoid an off-MLS listing?

An off-MLS listing generally does not get the broad market exposure that a property listed on the MLS gains. That can significantly reduce the number of potential offers to purchase that a property seller may receive.

Off-MLS listings also may impact real estate values on a larger scale. Appraisals completed on behalf of mortgage lenders, which are a vital precursor to a homebuyer obtaining a mortgage loan, may be affected in communities where there are a significant number of homes being offered as off-MLS listings. Since not all off-MLS listings are entered into the MLS database once a property is sold, it is more difficult for real estate agents and their sellers to determine a listing price, for agents and their buyers to decide how much to offer for a property, and for appraisers to determine the current market value of a property.

Exposing your listing to all available buyers can get you the best selling price and in this competitive marketplace, could even result in multiple offers, says Carolyn Miller, president of the Silicon Valley Association of REALTORS®. "Working with a knowledgeable REALTOR® is always a good idea anytime you are considering buying or selling a home; so is being an informed consumer," says Miller. "Don't be afraid to ask questions. A REALTOR® pledges to be honest, trustworthy and have your best interests at heart."


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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