According to the Houston Chronicle, the National Association of Realtors recent ban of "pocket listings," was designed to help out prospective homeowners but there may be a loophole. The Consumer Federation of America is questioning why agents are still allowed to market new listings within their own firm before putting them on a local Multiple Listing Service.
"Allowing agents to privately market new home listings to other individual agents does not serve the interests of either the seller or buyer," Stephen Brobeck, a senior fellow of the consumer group and author of an analysis on pocket listings, said in a statement. "Sellers may miss out on opportunities to sell for a higher price and buyers are limited in their selection of properties."
The national association's 800-person board overwhelmingly voted Monday to limit the use of pocket listings, by requiring agents who sell through Multiple Listing Services to submit their listings to the MLS within one business day of marketing the property to the public, whether that’s with a sign in the yard, an email blast or a Facebook post.
In its analysis, the Federation said pocket listings are anti-consumer and and threaten a non-discriminatory housing market. The push for pocket listings, it said, comes largely from agents who want to reduce the time and expense of marketing a property without a reduction in their commission.
"Agents who pocket list are effectively gaming the system – restricting access to their listings but retaining access to the listings of other agents," the report said.
