Home Seller’s Guide to Pocket Listings | Real estate

0

How do you market your home when it comes time to sell? This is probably not a question you are ready to answer, even if you plan to sell soon.

A good real estate agent will have a marketing plan for your property. But as a seller, you’ll be most affected by how it’s marketed, and not all tactics work for all houses.

While most sellers choose the traditional route of marketing their home on the local multiple listing service, pocket listings – or private listings – are increasingly becoming a part of the conversation. Here’s what you need to know about the pocket ad option and how to determine if it will best serve your home sale.

What is a pocket list?

A pocket listing is a property for sale that is not listed on MLS, which is a system used by local realtors to market their listings, contact other agents, and initiate negotiations for a transaction.

The property may be advertised elsewhere – including on the listing agent’s website or other real estate listing sites – but since it is not listed on MLS, the listing is considered private.

Since they are not marketed to other agents through MLS, classified ads are often advertised to a network of potential buyers or agents that the listing agent or business knows might be interested.

Pocket listings can be a great private option for selling your home, as they limit the pool of buyers to those potentially willing to pay a premium to be able to bid on the home before it reaches a larger market.

If an agentless buyer places a bid, the listing agent can potentially complete the transaction as a dual agency, where the agent technically represents both parties in the transaction. While this means a little more money for the agent and a little less money paid by the seller, it also leaves room for an unethical agent to take advantage of either parties by not guaranteeing them the best possible offer.

But when not used for nefarious purposes, pocket listings can be a great way for agents and sellers to strike a fair deal with fewer interruptions to the seller’s life, which is worth pointed out, says Alex Ianos, CEO of Pocket Deed, a real estate listing site for properties not listed in the MLS.

“As a broker, personally, I think it should be our responsibility to at least present this option [of listing privately]says Ianos.

Why would you want to sell your house with a classified ad?

Certain circumstances make listing a property privately an attractive option, both to avoid public scrutiny and to protect the property from the stigma a home can develop if it stays on the MLS for even a little bit. longer than the market average. Here are four reasons why a pocket list might be a good idea for you.

You want to maintain confidentiality. Marketing your home for sale and allowing strangers to visit your residence can be a difficult hurdle for some homeowners.

“It could be for security purposes or for business purposes,” says Walt Danley, president of Walt Danley Realty, Christie’s International Real Estate in Paradise Valley, Arizona.

You may be a public figure who doesn’t want your dirty laundry (literally) out in the open, or you may have a tenant on your property who you haven’t talked about selling. With a private ad, you reduce the risk of asking strangers through and causing trouble.

You live elsewhere part of the year. It can be difficult to keep your home ready for the show when it’s closed for part of the year.

Danley says many of the properties he lists privately are owned by people who are out of town during the hot summer months, making this a good time to list the home privately while owners — and often the most likely buyers – are absent.

You want to test the market. If you’re unsure what buyers would be willing to pay for your home, a brief stint as a pocket ad might help you test a higher price.

“Maybe set aside a week to say, ‘Let’s try it as a pocket list, see if we can find a buyer directly.’ … If it doesn’t work, we can make it public,” Ianos says. Then, if your agent places the listing on MLS, your home can start at a lower price without having to suffer a drop in public prices, which can wreak havoc on future deals.

You are still preparing your house for the market. If your home needs updates and maintenance before it hits the market, it may take several months before you can hold an open house.

Your agent might list the property privately while you make the updates “in hopes someone will come and pay the seller’s price.” And the seller wouldn’t have to spend the time, energy and money to make it perfect for market launch,” says Thomas Henthorne, real estate agent at Decker Bullock Sotheby’s International Realty in the Las Vegas area. San Francisco Bay.

When is standard marketing a better option?

Most homes will benefit from reaching the widest range of buyers possible — about 90% of the time, according to Danley. “We want to do what is in the best interests of customers. And most of the time – the overwhelming majority of the time – it’s to expose the property to the widest audience and the largest pool of buyers possible, and that’s through MLS,” he says.

There are also good reasons not to market your home as a pocket listing. If any of the following is true, stick to a standard marketing strategy.

It is a hot sellers market. If homes are selling quickly and for more than the asking price, you might as well take advantage of what could easily become a bidding war for your home.

You will always ask “what if?” Be honest with yourself – if you’re the type of person who will wonder what you might have gotten if your home had been marketed publicly, there’s no point in listing your property privately. “You need to have a price in mind that you’re happy to get with a limited exposure strategy,” says Henthorne.

Your agent pushes a pocket list when you’re unsure. Your home should only be marketed as a pocket ad if it’s the best fit for you. If your agent try pushing the option about you, he or she probably doesn’t have your best interests in mind.

Share.

About Author

Comments are closed.