This past May, I wrote a blog post discussing updates made to the local multiple listing service (MLS) rules due to the National Association of Realtors (NAR) policy changes. For a refresher, you can find the May blog post here.
The policy is what is known as “Clear Cooperation,” which NAR mandates all Realtors to post their properties to the MLS within one day of marketing their listings.
According to NAR, they believe that the MLS is the most open, accurate, and equitable place to market homes for sale…and, it is. But, in a nutshell, their real goal was to eliminate off-market listings, or at least limit them, for the good of agents and home buyers and sellers alike.
There are passionate arguments on if this new policy is good or bad. And, that is a debate for another day.
In essence, NAR is trying to create a system to make off-market and “Coming Soon” listings more transparent and orderly to the agent community, and in turn, their clients.
How Clear Cooperation Works
So, how does the Clear Cooperation policy work?
We are beginning to get a hold on it, but one thing is for sure…it is confusing.
Below, there are three classifications for listings agents must follow:
Confused already? We are just getting started.
This is how I can break it down for you:
- Registered Listings
- Agents have a signed listing agreement but CANNOT do any marketing whatsoever. The property does not go to the MLS or accumulate days on market, but agents can only show clients at their brokerage.
- Coming Soon Listings
- Agents that have a signed listing agreement CAN market the property. However, it is displayed on the MLS for ONLY agents to see, but the property is NOT allowed to be shown. No days on market are accumulated and this can be done for three weeks max before it goes active on the MLS.
- Active Listings
- And lastly, this is the typical listing you are used to seeing. Market your heart out, displayed on the MLS, and show and sell the property to anyone or any brokerage.
You may wonder exactly what is considering marketing and advertising?
There are detailed definitions that are what you would expect, so I won’t dive any deeper into that.
If the Clear Cooperation policy is violated, agents around the South Bay are looking at a $2,500 fine.
With all that noted above, do you know the one caveat that exempts you from Clear Cooperation?
No signed listing agreement…just trust between the Seller and Agent.
The Result of the New Policy
As a result of the new policy, a “new” off-market MLS has been created…along with various degrees of off-market deals.
There are now three general forms of off-markets:
- The “new off-market MLS” as I am calling it which is the ‘Coming Soon’ section only viewable to agents or clients given access to the feed. Including, of course, the chances that you may see the marketing done by the agent.
- Registered listings that are only shared within one’s brokerage.
- Unsigned listings that are still shopped off-market the way same they were in the past.
Yikes! That is a lot of action to keep up with for both clients and agents alike.
Personal Experience After Four Months
Personally, I have followed the Clear Cooperation policy as a listing agent and broker of a boutique brokerage.
We have not tested the “Coming Soon” option to prevent our clients from being guinea pigs on an unproven method and chosen instead, to study how it works out for others.
Over the past four months, I have opened two escrows for buying clients during the new Clear Cooperation policy.
Currently, I have a buyer that is in escrow on a Manhattan Beach Sand Section home from a “Coming Soon” listing that never hit the market.
And, I have a buyer closing on an off-market Valmonte home from an unsigned listing that operated like an old off-market deal.
Our residential market is still the same, but now with more variation, confusion, and paperwork. “Coming Soon” is a new type of off-market system, but as a result there are layers of additional strategy and rules to follow.
The intent is there, but the current structure in place is not working as NAR had hoped. And as always, agents are finding loopholes. It is too easy.
I will try to update you again before the end of the year.
For now, study those “Coming Soon” listings where you can and make sure you know what you are doing in the now, even stranger, world of off-market listings.
A Little Self-Promotion
Since this is a shorter blog post than normal, I wanted to throw in some extra marketing for my clients and self-promote two gorgeous South Redondo listings that just hit the market this week.
Below are two new upgraded detached town homes in South Redondo. Both are fabulous and offered at different price points depending on your budget.
You will love them.
- 712 N. Irena #2, Redondo Beach, CA 90277
- 3 bed, 3 bath, 2,078 sq. ft., 5,912 sq. ft. lot
- Asking Price: $1,349,000
Meticulously maintained remodeled home in beautiful South Redondo Beach does not miss a single detail. The exceptional floor plan of this detached, back-unit townhome is rare. Unlike most townhomes, this configuration allows for three bedrooms and two bathrooms on the top floor with plenty of room for a handy office/loft/bonus room. Light, bright and open living on the first floor flows seamlessly to a private, low-maintenance backyard. The kitchen, an absolute showpiece, is highlighted by white shaker cabinets, clean quartz counter tops, and a stylish subway tile backslash. Stainless steel appliances include a Wolf range, Bosch dishwasher, JennAir oven and 30″ oven/microwave combo, which are completed by a 42″ Sub Zero french door refrigerator, custom hood, and farmhouse sink that includes a Rohl faucet, water filtration system, and instant hot dispenser. The living room is highlighted by a fireplace with Carrara marble tile surround and hearth, custom glass doors, and gas or wood burning options. Large cathedral ceilings peak in the master suite which includes a walk-in closet and cozy balcony. The master bathroom offers dual sink vanities under quartz counter tops, Carrara marble herringbone tile floors, and a luxurious master shower with Rohl water fixtures. Additional features include Farrow and Ball wallpaper, California Closets, Ring doorbell, ADT security system, Hunter Douglas window treatments, and custom office built-ins, just to name a few. A true gem!
- 535 Avenue B, #B, Redondo Beach, CA 90277
- 4 bed, 4 bath, 2,860 sq. ft., 6,103 sq. ft. lot
- Asking Price: $2,099,000
Impeccably designed home on the coveted Avenues of South Redondo Beach, this custom detached townhome has it all. With careful attention to detail, this almost-new build embodies elegant style, sophistication and comfort. The stunning chef’s kitchen is equipped with a top-of-the-line Miele appliance suite, including a 48” gas range, with integrated warming drawer and microwave, complemented by a Sub-Zero beverage center. Walker Zanger countertops dress the walnut center island and white shaker cabinets. All perfectly framed by a gorgeous oak tongue and groove ceiling and statement pendants. With the backdrop of ocean views, the open, yet intimate, top-floor concept is complete with kitchen and dining, a deck with built-in BBQ and outdoor heater, and a comfortable living room with custom precast fireplace. Appointed with a beautiful master suite, it includes walk-in closet, bathroom with custom vanities and Neolith slab, walnut drawer boxes, Newport Brass fixtures, dual sinks and steam shower. Additional upgrades include Crestron smart home system with distributed audio, independent security cameras, automated 3rd floor shades, Farrow and Ball hand-painted wall paper, Restoration Hardware light fixtures, A/C, Ring doorbell, pre-wired for solar panels and e-car, shiplap wall details, 3-stop elevator, and more. Top it off with a low-maintenance private backyard and rooftop deck with unobstructed views of the coast and Palos Verdes, this Redondo showpiece should not to be missed.
Two lucky buyers will absolutely adore these homes.
I hope it is you or someone you know.
Have a great weekend!