You did what with Dad’s house? In-agency sale leaves ‘money on the table’

Q: We just found out my father-in-law sold his house without market exposure. Every week, we would call him and ask how he was readying the house for sale, hearing about leaving his beloved home, and his saying goodbye to lovely neighbors. When the time came for the home to be on the market, we could not find it on any of the major realty websites. When we called to see what happened, Dad said his house was sold. We then called his sister to learn the agent hired to list Dad’s home “had buyers in waiting.” Dad’s listing agent made this fast, in-agency sale sound best for all parties. Because we are both in marketing, we know this is all wrong. My father-inlaw is retired military on a fixed income. My husband is livid and keeps blurting out “they left money on the table.” Is he right? If so, is the amount of money lost worth a family squabble?

A: Yes. And, yes. Nationwide, let alone where Dad’s Bay Area house is located, inventory is scarce. It’s been a seller’s market. Full stop. As a member of the 2013 Off-MLS (Multiple Listing Service) Task Force, I watch this dubious practice grow before, during and after the task force’s existence. In the 1990s, real estate attorneys hired by disgruntled sellers would tell me how they easily sued agents engaging in the Off-MLS/Dual Agency behavior. OffMLS listing agents save themselves person-hours and promotional dollars. When these proponents of Off-MLS represent the seller and the buyer, (dual agency) they receive two paychecks. If an agent in their office chain represents the buyer, (also dual agency) they typically get an extra percentage for an in-house sale as an incentive, no less. Conversely, older adults like your father-in-law could use an additional $100,000 to $200,000. Why shouldn’t his home of the last 45 years pay for his future housing? Think I’m joking? I’m not. Next week, I’ll be juxtaposing California Association of Realtors’ reasons why Off-MLS agents are swimming in litigious waters against blatantly exposed annual riptides of On-MLS vs. Off-MLS stats from five Bay Area counties.