Pocket Listings In Real Estate
Pocket Listings seem to be the flavor of the month. It’s the term used when a property is not inserted in the Multiple Listing Service (MLS). There is a different understanding from what a seller believes to be a pocket listing and what a broker defines as such. I “think” what a seller means is that they don’t want their property exposed on a wide basis to the marketplace. They have been led to believe that this method will result in the maximum price obtainable in the market. Maybe it does, but maybe it doesn’t.
Think about this. Would one prospect looking at a house result in this maximum price or would the maximum be obtained if the home were exposed to many more people? Take this out another step. You tell your broker that you want a “Pocket Listing” and the broker runs with that and calls a few trusted competitive agents and any clients he or she might have. Maybe that results in 3, 4, or 5 showings. On the other hand, if your broker places the property in the MLS it is going out of 1000s of agents that might have the ultimate buyer.
A number of years ago I had a seller who wanted to keep his $30M listing “quiet.” After showing to several buyers who declined to buy I convinced him to let me put in the MLS. Lo and behold I received a call from a broker who never sold a house for over 2M. Her client was a Silicon Valley tech exec and one of the wealthiest men in the world. He came, he saw and he bought. Had this property not been in the MLS I would have never found this agent or his client.
So the question is: How do you get the best price for your home? My answer is: Expose it to as many potential clients as you can reach. It is your broker’s job to pre-qualify any and all clients who schedule a time to visit so as not to permit unqualified people in the home. You make the decision — tell 6 people about the house or tell all brokers in the market place. I think it’s a simple decision.
This post originally appeared on www.weahomes.com