Broker Reciprocity The IDX System--Or It's Not Really My Listing

IDX stands for "Internet Data Exchange" commonly called Broker Reciprocity.

IDX allows non-listing brokers and agents to freely engage in cooperative brokering whereby listing agents and brokers agree to the sharing of proprietary information with other MLS members belonging to a specific MLS Board.

The IDX system allows an agent or broker to show you the entire database of properties listed in a specific MLS Service region even though the broker or agent dispensing the information is neither listing agent or broker. This is a critical point to digest.

The real estate community has determined that the IDX system is a legal way of profiling listings that are not specifically owned or controlled by an individual broker. This widens the playing field so that a seller's property gets broader exposure to all MLS members.

In practical terms, this means for example:

You, the real estate consumer, are researching the Bay Cove area of Anywhere New York State. You've found a super website that lists every property in Bay Cove. You hit the link for a parcel you have interest in.

Immediately, you are taken to 2345 Wavecrest Avenue, Bay Cove, Anywhere, NY. A detail sheet appears profiling 2345 Wavecrest Avenue. Taxes, the school system, bed and bath numbers, square footage, and more enrich your understanding. You are a happy consumer because you've found out a lot about the property you wanted to research.

After reading the information, viewing static photos and perhaps a slide show or video, you scroll down to the bottom of the information sheet. The IDX mandatory disclaimer reads something like this

© 2010 Multiple Listing Service of The ABC County Board of Realtors. All rights reserved. Information deemed to be reliable but not guaranteed. The data relating to real estate for sale on this website comes from Multiple Listing Service of The ABC Board of Realtors and the Broker Reciprocity Program. Real estate listings held by brokerage firms other than XYZ real estate firm are marked with the BR logo and detailed information about them includes the name of the listing brokers. Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. Information last updated on 2010-11-19.

The disclaimer actually announces that you, the consumer, are reviewing a listing presented by a cooperating MLS member and NOT NECESSARILY the listing broker. Although there are many instances where the information will be offered by the listing broker, more often than not, the information sheet will originate from a different source.

Those sources are somewhat contentious from the broker and agent view. Let's suppose you have found some real estate of interest on Zillow, Trulia, or a similar site and, I am a member in good standing of my MLS board.

Furthermore, I also advertise on Zillow. Due to my status as a paid advertiser, my name and contact information show up on every listing in a specific zip code. In other words, no matter what broker owns the listing, my contact information is presented.

You may wrongfully assume I am the listing agent, where in reality, I am simply an MLS member who advertised well. My ad campaign successfully engaged your business.

Now extend this main principle to just about every conceivable on-line real estate information aggregator. My name and contact information is appearing AS IF I am the owning broker/agent. I am receiving your lead based on the IDX principle of Broker Reciprocity because I have employed a clever marketing strategy.

Since this marketing technique works with and against individual listing agents and brokers, I suppose you may surmise the IDX System a zero sum game. The seller benefits greatly, the buyers are exposed to the widest content for research purposes, and the broker/agents get the opportunity to slice the pie in half instead of eating it whole.

You may have other ideas about the Internet Data Exchange (IDX platform). When you call-you may want to ask if I am the listing agent or broker-or, you may not care. I know as an agent, I care a lot.

John Kavaller

Example of IDX Sheet

The MLS and You,The Real Estate Consumer

As a real estate consumer, you may be interested in understanding how competing brokers and agents really do business with relation to the MLS System.

Let's get into a fairly typical example of a home-buyer lead coming into a broker's office.

Joe Q. Public calls the ABC Real Estate Brokers Exchange on Monday morning, 9:00 a.m. sharp. An agent named Mary Lou answers the phone. After a brief hello, Joe asks Mary Lou about a property he's seen advertised on-line.

Mary Lou does not recognize the property in question. It is not an office listing, company listing, or personal listing. “Hm Mary Lou muses, wonder whose listing it is?” In less than 2 seconds, Mary realizes that Joe has called her office based on a listing owned by a competitor.

Mary Lou needs to buy a little breathing room here so she can keep Mr. Public as a client. Since the information is not readily available, Mary Lou says: "Joe, I'll get that information right out to you. Just give me your contact info. By the way, what did you say the MLS listing number was--perhaps you have the address as well?”

Joe responds politely with a bit more info on the property in question and leaves his contact info before the conversation ends. The call is over and Mary Lou gets to work quickly.

She has the MLS number or the address of the property Joe wants to know about. The MLS number, or Multiple Listing Service Number makes researching the competitor's listing a snap. In several minutes, Mary Lou brings up all the data she needs to get back with Joe Public.

Mary Lou emails Joe the MLS information sheet with all the details Joe wanted to know. Pictures, tax information, school district, number of bedrooms, baths, pool size, and so on. On the emailed info sheet, Mary Lou’s name and company affiliation stand proudly so Joe knows who to contact when he requests more info or wants to schedule a showing.

Mary Lou has done such an efficient and professional job relaying helpful information to Joe that he schedules a home tour of the same property with Mary Lou. Joe and Mary Lou tour the property and two hours later, Mary Lou receives a purchase offer on the home just viewed.

End of story? No, not by a long shot. First off, this is an over simplified description of just one situation that frequently arises in the real estate business. Secondly, even within this scenario, other factors come into play that can confuse a client or customer and cloud the relationship between agent and consumer.

The Multiple Listing Service is a well-known data provider to most consumers. The idea is to gather all broker listings in an electronic format featuring every Member Broker's (read dues paying in good standing) listings. (BTW--in NY State, the broker "owns" a specific listing no matter what agent actually sells that service.)

All members of the MLS have proprietary access to every listing of all the individual MLS Board Members. By express agreement of all the member brokers, all brokers and their agents also have the express permission to access all data collected.

Hence--the MLS system actually sanctions, allows, and encourages co-brokering whereby unaffiliated agents and brokers can share commissions based on one party bringing a buyer and the other bringing the seller to the table.

Statistically, it is far more likely for a property to be sold using the cooperative nature and spirit of the MLS system. Most sellers are aware of this system and ask prospective listing agents if their brokerage firm participates in the MLS system in their respective area.

It is interesting to note that many prospective buyers are unaware that properties are routinely co-brokered. MLS listed agents consistently stress that, no matter what broker or agent actually booked the listing, any MLS agent in good standing has the legal authority and right to co-broker a deal.

To sum this up: If you, the real estate consumer pass a property with a sign that advertises the XYZ Real Estate Company, and you call Mary Lou at the ABC Real Estate Brokers Exchange, it's perfectly acceptable, legal, and honorable to do so as long as both belong to the MLS system. Most brokers and agents do participate.

If you see a listing on other web hosts like Trulia, Zillow, Active Rain, Hotpads, etc., the same principle holds true. You should feel free to contact any agent or firm for more information and a showing as long as they are members of a specific MLS.

OK - So Maybe Giving Directions to The Catskills is Loony!

Hello Friends--

You may think this post ridiculous, but I've found many a veteran driver from Metro NY, uninformed about the best route and times to travel up here to the Sullivan County, NY Catskills.

Yes, I know there are a number of programs, websites, and routing software (including GPS) that provide directions.

What follows is the very best route I've found to get to Wurtsboro through to Roscoe/Cooks Falls on Route 17. (Soon to be Interstate 86)

Get to the George Washington Bridge- I am originally from Queens and still travel back and forth there frequently. My favorite route out of the City is to take the Grand Central Parkway to the Harlem River Drive. When you get to the GW-(take the TOP-DON'T GO TO FORT LEE!) and over to the Palisades Parkway be sure to stay in the second lane to the right when traveling over the bridge. Make the turn onto the Palisades in the same lane--why slow down? Take the Palisades all the way up. DO NOT GET OFF AT THE THRUWAY!

Go past the Bear Mountain Bridge exit and proceed to the traffic circle. Go 1/2 way around and make right up the Long Mountain Parkway. The Long Mountain Parkway runs from the traffic circle you just went round directly to State Route 17 West (86 West). It's about 7 or 8 miles. Since the interchange was redone, it's a breeze to enter 17.

At night--it is quite easy to wind up on the road to 9W. If you're not paying attention and you are in the right hand lanes-- you'll be a happy Sullivan County camper later rather than sooner. Stick to the two left hand lanes passing by the Anthony Wayne Recreational Area in Harriman Park.

You've effectively eliminated using 87 North or South (coming home). The drive is more interesting and varied, and if you're driving your ragtop, a great way to smell life.

The best times to drive up: Well again--most city folk know all about rush hour. If you can't start out on Thursday, begin before dawn on Friday. If that doesn't work--try to hit the Palisades no later than 2:00 pm. Or--suffer all the BS entailed going to the mountains during peak traffic time.

Constructions at Middletown is a problem and expect slow downs coming both ways during peak travel times to the Sullivan County Catskills on Route 17 (86). Finding your way around by circumventing 17 in Middletown can be a real loser if you don't know the back roads out of Middletown--for instance-Do You want to Get Lost in Otisville? No one lives in Otis and the founding family simply added the ville because it was politically correct. But you could stop and tour one State Prison and one Federal Prison while you're lost there. Better call first to make an appointment though.

Now coming on home, read this post backwards. Be sure to leave before everyone else does or Whammo--you get to sit in traffic for hours again and rue the day you decided to buy that second home.

By the bye-- If you need help with the back roads, call me.

Do You Need A Real Estate Pro?

Do You Need A Real Estate Pro?


I asked the question because it is absolutely critical for consumers to define our legitimacy and value for themselves. Hopefully, by offering our own ideas of how our service expedites and smoothes the process, the consumer comes away with sound reasons for using real estate agents.

Some people prefer to walk the new or used car lot alone with no help (read interference) from a sales person. Others want a full-blown tour of the lot as the sales person explains different makes, models, and options.

Much like home shopping, car shopping involves many of the same issues of home ownership. Big-ticket item, insurance, registration, taxes, paperwork and a myriad of other details attended to by the salesperson and dealership.

In essence, the car salesperson expedites the sale and transfer of a vehicle to the end consumer. For that service, he or she receives a commission. Those who know the auto sales business understand that good moral fiber, honesty, and sincere service are rewarded by repeat business from the family and friends of the buyer.

How different is this process from introducing folks to our listings or working as a buyer’s agent? We have a copious amount of proprietary information we can easily access for answers. The consumer can also access the same information, albeit more slowly and perhaps less accurately.

Buying and selling real estate is not rocket science. As real estate professionals, we should be careful to define what our functions are and how they serve to benefit our clients and customers.

A good agent wears many hats and is an expediter. Quite often we act as the middlemen/women between two views that need melding and agreement. Whether negotiating price, getting tax information, scheduling and conducting viewings, we certainly perform valuable services for those who understand how special knowledge lubricates the buying and selling process.

John Kavaller

Other People’s Money or Why You Need A Real Estate Pro

The Real Estate Industry is flush with jokers, red herrings, and fast talkers. As with most businesses, the opposite is also true. Professional and ethical sales people are legion as well.

The professional real estate sales person, especially those who earn a living based on commission alone, barter time, energy, and hopefully expertise, for a payday upon closing. The agent performs a valuable service in return for substantive remuneration.

Conceptually, what could be better than using other people’s money (OPM) to earn your own living? Typically, the seller pays a commission upon the successful completion of a sale. The listing broker and or agent leveraged the seller’s resources to gain specific financial gain without risking a dime.

Sounds like a super model to me. Much like the auctioneer who receives a seller’s premium, buyer’s premium, or both, the broker/agent gets a cut off the top thereby earning a healthy living for his/her trouble.

Buyer’s agents often represent clients for a stipulated commission that is akin to a professional consulting agreement. Much like an attorney receiving a specific award percentage for services rendered, the buyer’s agent gets paid by successfully completing a sale for his/her client.

Opening shop requires a license, perhaps a sponsoring broker, phone, computer and access to listings. Start-up costs can be minimal when compared to the expenses borne by other business models.

Is it any wonder why so many seem to be involved in real estate sales? Of course not. And—why the heck do you need one of these people to represent you? What can a real estate agent possibly do that you can’t?

Glad you asked. Let’s use the attorney example. You can represent yourself pro se in court if you choose to. If you believe you have the skill, experience, and determination to win a tort case, you may opt to argue your case as a layman.

Chances are, you won’t win, but you certainly are welcome to state your case without a professional at your side. Most personal injury lawyers don’t get paid unless they win your case. So, you aren’t paying for services unless there is an award in your favor.

Where is the downside? Oh yes—if you manage to win an award pro se, you get to keep the entire award. And, if you lose, you get zilch. Would you truly consider representing yourself after your auto accident?

This logic also holds true for representing yourself in personal real estate transactions. Of course, you have the right to carry out the mission. If you are a buyer, why would you try to navigate the real estate tide by yourself? The seller is paying out the commission, not you.

You may reason you can cut a better deal with the seller by cutting out an agent. Let’s say the seller must pay a 6 percent commission upon the successful completion of his home. Makes sense to ask the seller to reduce his price by a minimum of that amount because of the commission savings. Right?

Not a bad strategy, but you, the potential buyer are leaving a whole lot of money in the seller’s pocket if you haven’t correctly assessed the market. If you’re negotiating 6 percent below asking price, you’re probably paying too much—especially in today’s market.

So go ahead and lowball the price and negotiate up from your first offer? Sound right? Could be a good strategy, but maybe not. Maybe the owners will just tell you to get lost. Maybe you don’t care if the seller’s walk away; but I’ll bet if it’s a home you really want, it makes a very big difference.

Now what do you know about obtaining a mortgage? What do you know about points, application fees, FHA programs, Fannie Mae, Freddie Mac, home inspections, title companies, deed filing, transfer taxes?

Who writes up the sales contract and why? What happens if you don’t understand the contract or want revisions? What the heck is agency anyway and why does that affect you? Should you hire an attorney? Is it mandatory to hire a lawyer for your transaction?

There’s an oil tank in the ground. Should it be tested? Is it leaking? If it is, who is responsible to get the mess remediated. What the heck is a binder and what happens to it if the deal falls through? Leach field, your own well, colliform? Hm? “Ah-just dump some bleach down the well head”—“say what”?

Sure—there are a lot more situations and circumstances that arise in real estate transactions. And frankly, with a computer and some commons sense, you can probably find the answers for yourself. It may take you substantial time, but you certainly can go it alone if that makes sense for you.

For the Seller—Want to save on the commission paid out? May not be a great idea. You may wind up saving a few percentage points, and losing out on a much higher selling price because you don’t do this sort of thing for a living. You may wind up pricing incorrectly for the market place and sit twiddling your thumbs whistling Dixie.

Or you could get lucky—really lucky and have a buyer come along and give you exactly what you want. In today’s market, that is even more unlikely than it was several years ago.

For the Buyer: What is the downside of using a professional real estate agent? I can’t think of one. I could send you a link to the National Association of Realtors site listing all the benefits, but then I’d be accused of be a talking head for NAR and entirely unoriginal—perish the thought.

At any rate, share your ideas as to why or why not using a real estate pro is the way to go or not go. There will be those that consider the logic here entirely self-serving with no merit whatsoever. If you are among that tribe, craft a response that presents your side of the issue. I am sure the public will appreciate your perspective.

Big Smiles Make Me Cry

Big Smiley Faces

Are not particularly good at defining quality or excellent service. If your specific tastes run with how an agent is packaged, then I suppose, a big smiley face is an important aspect of choosing a real estate representative.


Big Smiley Faces

Are not indicative of substance. It is not difficult, nor does it require any real estate knowledge to sit for a fashion photograph. Gleaming white teeth and perfectly matched accessories don’t mean you, the client or customer, achieves excellent pricing for the property being purchased or sold.



Big Smiley Faces

Are not necessarily stylish or graceful in person. Calmness in the face of challenge, negotiating skill, rational thinking, and research based on analysis are some factors that actually DO translate to credible service for your commission dollar.

Big Smiley Faces

Work well for used car salesman some of the time. Shiny gold colored cuff links, monogrammed shirts, and paisley ties certainly do have their place in the business world; but do you want this sort of representative when you are buying or selling a top asset?

Big Smiley Faces

Are often displayed in other ways besides good looks or lack thereof. Hiding behind paperwork, making up answers without having the real answer, hesitating too long when a direct question is asked, and ignoring your requirements often go hand in glove with the grand smile approach.

Big Smiley Faces

Indicate, at least to me, that the advertiser is more concerned with themselves and how they look than they are with how best to represent your interests. Those who know this business are not likely to brag. I keep my personal and intimate life off the Internet—regardless of the social networking milieu that’s the current social idiom. Big, splashy presentments are usually lies covering up truthful representation.

Big Smiley Faces

For some reason, have become part of traditional real estate web design. I don’t know why. Being beautiful, having brilliantly white teeth, perfect accessories, sturdy face with just enough ruggedness to portray the manly approach are fine. These attributes, however, should not be the main focus. Mr. Clinton, then vying for the presidency used: It’s the customer and client stupid, not you, who is important." Well- I did take just a bit of poetic license to adjust the slogan.

And--I am going to remove my photo soon--promise!

What you need to put a deal together

What you need to put a deal together

Conceptually, buying and selling property is no different than buying or selling any other commodity. Basically--a product, buyer, and seller define the process. Why then does it seem difficult, especially in current climate, to bring a fair deal to the table?

Kick these around and see if they ring true for you.

1) Lenders are not being especially cooperative or efficient: If the former rule of thumb was to lend to almost anyone, the current climate now often denies individuals who are credit worthy.

Where no documentation was required, the lending institutions now require several paper mountains to accumulate and be reviewed by over worked underwriters. My recent dealings with lenders demonstrates a lack of motivation to lend.

(Side note on single and double wide manufactured homes: In our rural area, single and double wides abound. Single wide mobiles are totally off the table. If a client can't buy for cash, they are out of luck. Double wides are extremely difficult to get through. The interest rates are 1.5 to 2 points higher for funding than conventional loans. Additionally, loan terms are generally a maximum of 20 years. Lenders often require 30 or more percent down. Although some financing programs still do exist (FHA)the stringent requirements, soon to be even more stringent, disallow our working populace the pleasure of owning a home.)

2) In my home market of Sullivan County, NY, sellers still remain somewhat unrealistic in their expectations. New listing prices are often not supported by current market conditions.

3) Buyers, knowing it is indeed their market, are lowballing offers that simply don't make the grade. It is one thing to offer a certain percentage below realistic pricing, say even 20 percent for starters; it is quite another to slash a well documented price tag by 50 percent. Recent data in our county suggests that 12% percent below adjusted asking prices (prices revised downward from original listing price) are the number at which most consummated deals are made.

4) Our economy is not conducive to buying homes. Home inventory is quite high and serious buyers are scant. Prices may yet fall further. What are the incentives to move quickly on a purchase?

5) Appraisers seem afraid of using the higher comparables available for analysis. Experience in my home market demonstrates that deals fall through based on properties not apprising out--a mortgage killer in many circumstances.

Although many other factors are involved in real estate transactions, the points discussed here are more than enough to make seasoned veterans bite their nails.