Way back in 1965, a Princeton-educated research psychologist came up with a theory known as “Tuckman’s stages of group development.” Bruce Tuckman’s stages are comprised of forming, storming, norming and performing; the Irish-born Tuckman claims each phase is inevitable for a “team to grow, face up to challenges, tackle problems, find solutions, plan and deliver results.” Speaking from personal experience as a former project manager, it works!
In the buying and selling process of residential real estate, we all face challenges, tackle problems and find solutions. Issues are often addressed as a team in hopes of achieving positive results for a broker’s clients.
Sellers also have the ability to conduct a different type of “forming” with their broker. They get to decide many aspects of the home listing, but what some sellers don’t realize is that through the use of Northwest MLS forms they also have the ability to limit the exposure of their personal information and other details to brokers, buyers and the wider public.
Yes, it’s what I call forming your approach (figure of speech intended) to selling the home. Real estate professionals will ask a lot of questions of their seller/client to clarify their wants and needs in the home sale. That includes deciding whether:
- The seller’s agent must be present for all showings of the home (which is most common for new construction and when the home is in the luxury category);
- The seller wishes to withhold his/her name and/or phone number from being shared publicly or even with other brokers (a common request when seeking strict privacy);
- Buyer brokers can be prevented from submitting offers in person (more common today, particularly when multiple offers are anticipated);
- The seller wishes to mandate a lower commission to the buyer’s broker (which can limit the number of offers received);
- The seller requests certain tasks be completed by the buyer’s broker before earning a full commission (most commonly seen for new construction projects);
- The seller requests the buyer pay a fee to a third party that may be added to complete the sale (such as costs related to completing a complex short sale or a fee from a relocation company helping with a client’s move);
- The seller requests that buyers show an approval letter from his/her mortgage company, affirming the lender’s customer has passed the application process and can be shown the home (common in new construction projects);
- The seller restricts the property listing from being advertised or the address from being included on the internet while still available to buyer brokers through the MLS (this type of listing is common for luxury residential properties and owners seeking anonymity).
The above restrictions are part of the “7 series” of MLS forms, documents that a listing agent will discuss with sellers before the home is publicly listed and only one or two are commonly included. These seller requirements are included in the MLS database and typically only discoverable by brokers.
In the spirit of Tuckman’s theory, a seller uses the forms to, well, form a set of rules and restrictions that will protect his/her interests and establish personal boundaries in the sale of the home. Be advised, though: Many of the form 7s can hinder a sale, particularly when the property is not publicly listed. When in doubt, check with your real estate attorney for guidance…before storming, norming and performing!