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April 10, 2008

I Love A Good Cat Fight - Part 1 of 2

Pre-Marketing: It's the new dirty word in real estate marketing.

This week I was exposed to the growing resentment by agents regarding the
new listing tactics some agents are taking.

Pre-marketing is when an agent positions him or herself to have an inside
track to buyers. They tell potential clients they have a list of people who
want to buy homes through a network of agents.

In the past agents would refer to these as pocket listings or give them a
few days before posting to the MLS. But the difference now, I've been told,
is agents are now convincing sellers that pre-marketing is the only way to
go.

Sellers choose to go with these agents because they believe their homes will
be sold before they even go on the market. That's not illegal, it should be
noted. Agents that use this marketing tactic do have listing agreements and
the signed paperwork necessary from having to put the property on the MLS.

With that paperwork in hand, the agents then reach out to their "top secret"
list of agents. Some call it the "top agent" list; others just referred to
it as their "network."

Sellers are led to believe this will allow their agent to shop the house
around without putting it on the MLS where it can sit for weeks. If the
agent's "network" fails to find a buyer, then and only then does the house
go on the MLS..

One agent told me the problem with that theory is everyone has already seen
or knows about the listing. The only one left with the impression it's a
secret is the seller.

I'll post part 2 Friday

Posted by Jeff Brooks on April 10, 2008 12:01 AM | Permalink

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