Fattening Frogs For Snakes

Real Estate Education Training:

Doing The Heavy Lifting


The current Real Estate market has created an imbalance in the "available" supply versus demand for housing.  What should be a buyer's market due to years of  record setting foreclosures appears to be a seller's market with multiple offers, overbids and an increased number of pocket listings.  Pocket listings are those properties held out of the California Regional Multiple Listing Service (CRMLS) by the listing agents to increase the listing agents chance of receiving the listing and selling commissions.  By the way, FHA and VA buyers need not apply.  Overbids and Multiple Offers usually mean that the only offers being considered are those thousands of dollars above the expected appraisal.  FHA and VA offers may also come with repairs due to deferred maintenance and other costs that Cash or Conventional buyers might avoid. Thus the only real players in this situation will likely be Cash and/or Conventional buyers.  I am especially concerned as a Vietnam Veteran that my fellow Veterans are truly at the bottom of the housing "food chain".  Veterans fought for the freedom to maintain a system that now excludes us from participation.

This condition is also ripe for other bad characters using the low inventory as an excuse to get between those Realtors that have worked for months with buyers and often making multiple offers for homes on the buyers behalf.  Those agents that knowingly mislead the buyers into thinking that only offers written on their listings by them will lead to acceptance are using fear as a bargaining chip to seduce other Realtor's clients.  The Realtor that has worked for many months with the buyer educating them on the home buying process, conducting multiple housing tours and making other immeasurable investments are basically "fattening frogs for snakes".   The rogue agent often tells the buyers that there are multiple offers on the home and that the seller wants a strong buyer that has been pre approved by their lender. The hard work and time put into helping the buyers may be lost if the buyers think that only the agent with direct access to the seller can get their offer accepted.  We have all dealt with similar scenarios where this very subtle arm twisting has been applied. 

I receive several messages via LinkedIn, Facebook and other social media from Realtors discussing their concern about the lack of conscience on the part of other agents.  One told of a friend of over 30 years buying a property that left them out of the transaction after months of showing homes and writing multiple offers on the friends behalf.  One Realtor mentioned that a buyer just stopped returning calls. 

There are many other dirty deeds in play that may cause us continued discomfort including the increase in Pocket Listings.  The seller may not truly understand the impact when allowing their listing agent to keep the listing out of CRMLS.  Some may think their home and valuables are more secure by keeping the visits to a minimum and only when buyers are accompanied by the listing agent.  

Our industry survives when the CRMLS rules and Code of Ethics are respected.  We all benefit when they are enforced.  We need to note and report any misuse by our fellow members of CRMLS Rules or the Code of Ethics if we want to maintain our standards for today's and future housing markets.


Michael Teer, Broker
Certified Residential Specialist (CRS)
Teer One Properties, Inc.
(951) 313-5168
www.miketeer.com
ProbateSoCal@gmail.com

CalBRE#: 01523582/00843708