Off the MLS On Tour a private listings discussion

Transcription

1 Off the MLS On Tour a private listings discussion San Mateo County/San Francisco Update April 10, 2013 Robert Bailey, Bailey Properties 2013 Chairman, MLSListings Inc

2 The Marketplace: What s Happening Inventory at lowest levels since 2005 New listings continue to decline Days on Market now 35 in San Mateo County; down 60% from 2011 Closed sales holding fairly steady 5/6/2013 MLSListings Inc Confidential Copyright

3 The Marketplace: What s Happening Off-MLS transactions 15% 8.6% Double-ended deals? % MLS Exclusions Five-county snapshot, 2012 Off-MLS Listings 15% of marketplace 4,598 sales in 2012 $3.4 billion in sales Double-Ending 8.6% of market 2,715 sales in 2012 $1.7 billion in sales Exclusions 3,742 listings in monthly exclusions have doubled compared to the same month in /6/2013 MLSListings Inc Confidential Copyright

4 The Marketplace: What s Happening Off-MLS transactions Five-county snapshot, ,598 sales in 2012 County Overall Number of Sales Count of Sold on MLS Count of off-mls sales in Realist % of off- MLS Sales in Realist 15% of market $3.4 billion in sales volume Monterey % San Benito % San Mateo % Santa Clara % Santa Cruz % 5/6/2013 MLSListings Inc Confidential Copyright

5 The Marketplace: What s Happening Five-county snapshot, MLS Exclusions 3,742 in all of ,813 so far in 2013 In the first quarter of 2013, the number of exclusions recorded has doubled compared to the same timeframe in prior years Q1 Total MLS Exclusions, by Year 1, /6/2013 MLSListings Inc Confidential Copyright

6 Local Snapshot: San Mateo County Off-MLS Listings 15% of marketplace 1,084 sales in 2012 $1.05 billion in sales Double-Ending 7.5% of market 536 sales in 2012 $449 million in sales Exclusions 931 listings in 2012 Q monthly exclusions are up 67% compared to the same quarter in 2012 Off-MLS transactions 15% San Mateo County, % Double-ended deals? % MLS Exclusions 5/6/2013 MLSListings Inc Confidential Copyright

7 Local Snapshot: San Mateo Cities 2012 Sales: Select Cities in San Mateo County Off-MLS transactions: select cities 379 sales in % of market $650.8 million in sales volume City Number of Sales Sold on MLS Sold Off- MLS % of all sales that were Off-MLS Atherton % Burlingame % Hillsborough % Menlo Park % Portola Valley % Woodside % San Mateo % Total off-market sales: 379; total MLS exclusions: 559 5/6/2013 MLSListings Inc Confidential Copyright

8 Local Snapshot: San Francisco County San Francisco County, 2012 Total SF Sales, 2012* 6,266 sales in 2012 $6.3 billion in sales *Source: Realist Off-market sales represented 7.6% of all San Francisco sales in 2012, and $810 million in sales volume SFAR MLS Sales, 2012** 5,786 sales in 2012 $5.49 billion in sales **Source: SFAR MLS Rappatoni Off-Market SF Sales, sales in 2012 $810 million in sales 5/6/2013 MLSListings Inc Confidential Copyright

9 Potential Risks Areas of Legal Concern: C.A.R. Violation of CA Real Estate Law by breach of fiduciary duty - Article 1: Concerns explaining to client use of compensation within/outside MLS - Article 3: Concerns restricting information availability only when in the best interests of the client Fair Housing Violation Concerns practices that have a discriminatory effect (i.e. reinforcing segregated housing patterns) even when there is no intent to discriminate Antitrust Violation Concerns formal or informal groups with fixed compensation arrangements Possible consequences DRE Suspension or loss of real estate license Federal and Civil - Civil suit and possible liability for monetary damages - Significant fines - Punitive damages - Attorney s fees See also: (C.A.R. login required) C.A.R. Member Legal Hotline (213) This excerpt is not to be interpreted as legal advice. Consult an attorney for specific legal assistance. 5/6/2013 MLSListings Inc Confidential Copyright

10 Starting a Dialogue Surveys posted Community Discussion Forum at Town hall meetings Focus group discussions with specific private clubs Top Agent Network (TAN) Producers Forum Additional MLS deep-data analysis Comparison against tax records Forms Review Continue to aggregate subscriber feedback Formation of MLS task force MLSListening Tour 5/6/2013 MLSListings Inc Confidential Copyright

11 Results Survey 1: 1,035 responses 24% of respondents use OML 34% of respondents never use OML 34% of respondents don t know about OML 64% of respondents believe the use of OML is exclusionary or discriminatory (legally or ethically) 5/6/ MLSListings Inc Confidential Copyright 2013

12 Results Survey 2: 331 responses 74% of respondents believe an off-mls listing decreases the chance of getting the best price 63% of respondents feel an off-mls listing is not a breach of fiduciary duty if requested by the seller 21% of respondents are unaware of MLSListings exclusion process 5/6/ MLSListings Inc Confidential Copyright 2013

13 Results Survey 3: 348 responses Responses mixed about type and amount of fine for off-mls listings Type of fine that should be imposed Max. fine by percent of responses 5/6/ MLSListings Inc Confidential Copyright 2013

14 Comments If agents want to circumnavigate the MLS with their secret societies, or wait beyond the 72 hours to list, then they lose the privilege of being a member. Off market and private clubs are taking over A New status should be created in the MLS. Off-Market Pretty clear that Sellers have the legal right to not post their home on MLS. Dear Listing agents who try to double end or to sell your listings inside your company. I keep your records. Pocket listings do a disservice to sellers. They are less likely to get the best price and terms for their property. If a seller agrees to a pocket listing, that is between the seller and the listing agent. 5/6/ MLSListings Inc Confidential Copyright 2013

15 Thank you! Contact MLSListings for more information