EXCLUSIVES on East End, Long Island Real Estate

November 18th, 2008 category: Real Estate News, Real Estate Philosophy

I recently read an interesting article in Hamptons real estate that can be found here.

Any person selling real estate outside of the east end of Long Island knows something: the word EXCLUSIVE in real estate, when used outside of a listing agreement permitting a company to list a house, and offer cooperation to all participating brokers, is a BAD WORD.

“Exclusive” used to mean that an agency would finagle a seller into using only the real estate salespeople and brokers IN THAT OFFICE in order to sell a house. That the listing company would limit exposure by “EXCLUSION” was clearly bad for sellers.

“EXCLUSIVE” in real estate jargon was eliminated in the majority of the united states 20 plus years ago, when multi-list information became the “norm” for exposure, and  accepting and encouraging a cooperative broker to provide a good buyer for a seller became the expectation of Realtors. The “good guys” got RID of “EXCLUSIVE”.

More offers from more sources provided more “net” potential for the seller, so the Realtor community, bound by a membership requirement to cooperate*, accepted this additional exposure, understanding that it merged quite nicely with the state mandated “fiduciary” relationship that listing brokers pledged to home sellers.

HERE’S THE ODDITY: Also part of an east end attic mentality is the notion of an “open listing.” When I first arrived on the North fork of Long Island in 2002, I’d see a yard with three real estate signs on it. HUH????

An “open listing” is now called a FSBO, or for sale by owner, everywhere but on the east end. The majority of FSBO’S are willing to offer cooperation to a broker that might provide a buyer; the difference is, there isn’t a listing agreement, there is a selling agent fee (likely half of what an “open listing” seller might unknowingly offer).

Recently, I offered a blog, predicated on a real consumer of east end real estate, that can be found here. The comments exceed in quality the post itself. Open listings went away for a reason.

In conclusion: if you read the article found in the Independent, the verbiage could have been adjusted to fit this decade of positive changes:

Replace the word EXCLUSIVE with listing, or LISTED property.

Replace the words “OPEN LISTING” with FSBO, (offering a co-broke that reflects a fee one half of the norm, because they will be paying commission to a selling agent only- not a listing agent).

One last odd phenomenon has been that of “co” exclusives. A new one for an experienced outsider. As a listing broker, this practice would concern me because “co” doesn’t exist- it’s a non-existent agency relationship with the seller of a home. I’d wonder, at the end, if I’d be paid- or, if I should, not having been granted a legal definition of a “co”, “tri” or “quad” exclusive. Nonexistent.

While you’re at it? Remove the “exclusive” sign riders located on properties listed with full cooperation on the mlsli. It’s inappropriate, and misleading in this decade of seeking the best for both sellers and buyers- a “MUST SEE INSIDE”, or “BEAUTIFUL HOME” sign rider would serve both consumers better.

Just an opinion on east end, long island real estate challenges from a newer person who loves the “antiquity” out here- when it’s an amazing vintage lamp, or perhaps a fabulous old bracelet.

*COOPERATION IS THE DECISION OF THE SELLER/owner  OF THE HOME. If a seller has had an issue with a particular real estate company, they are permitted to instruct their listing company to eliminate that company(ies).

This entry was posted on Tuesday, November 18th, 2008 at 9:11 am and is filed under Real Estate News, Real Estate Philosophy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

Copyright © 2007 North Fork, Long Island, NY Real Estate Blog OptionsRealty.com     Agent Login     Design by Real Estate Tomato     Powered by Tomato Blogs