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
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 2013 2
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 2012 2013 monthly exclusions have doubled compared to the same month in 2012 5/6/2013 MLSListings Inc Confidential Copyright 2013 3
The Marketplace: What s Happening Off-MLS transactions Five-county snapshot, 2012 4,598 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 3573 3095 478 13.4% San Benito 621 556 65 10.5% San Mateo 7156 6072 1084 15.1% Santa Clara 17955 15233 2722 15.2% Santa Cruz 2261 2012 249 11.0% 5/6/2013 MLSListings Inc Confidential Copyright 2013 4
The Marketplace: What s Happening Five-county snapshot, 2012-2013 MLS Exclusions 3,742 in all of 2012 1,813 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 2000 1800 1600 1400 1200 1000 800 600 400 200 0 Q1 Total MLS Exclusions, by Year 1,813 856 765 909 2010 2011 2012 2013 5/6/2013 MLSListings Inc Confidential Copyright 2013 5
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 Q1 2013 monthly exclusions are up 67% compared to the same quarter in 2012 Off-MLS transactions 15% San Mateo County, 2012 7.5% Double-ended deals? % MLS Exclusions 5/6/2013 MLSListings Inc Confidential Copyright 2013 6
Local Snapshot: San Mateo Cities 2012 Sales: Select Cities in San Mateo County Off-MLS transactions: select cities 379 sales in 2012 15% 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 109 75 34 31.2% Burlingame 346 297 49 14.2% Hillsborough 175 148 27 15.4% Menlo Park 519 422 97 18.7% Portola Valley 73 59 14 19.2% Woodside 95 74 21 22.1% San Mateo 1120 983 137 12.2% Total off-market sales: 379; total MLS exclusions: 559 5/6/2013 MLSListings Inc Confidential Copyright 2013 7
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, 2012 480 sales in 2012 $810 million in sales 5/6/2013 MLSListings Inc Confidential Copyright 2013 8
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: http://www.car.org/legal/mlsfolder/pocketlistings/ (C.A.R. login required) C.A.R. Member Legal Hotline (213) 739-8282 This excerpt is not to be interpreted as legal advice. Consult an attorney for specific legal assistance. 5/6/2013 MLSListings Inc Confidential Copyright 2013 9
Starting a Dialogue Surveys posted Community Discussion Forum at http://bit.ly/17hqy50 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 2013 10
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) 5/6/2013 11 MLSListings Inc Confidential Copyright 2013
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 5/6/2013 12 MLSListings Inc Confidential Copyright 2013
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 5/6/2013 13 MLSListings Inc Confidential Copyright 2013
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. 5/6/2013 14 MLSListings Inc Confidential Copyright 2013
Thank you! Contact MLSListings for more information ceo@mlslistings.com 408-874-0200