Don’t Get Short Changed by a Pocket Listing

Recently at an office meeting one of our colleagues boasted that she had a new Pocket Listing. I asked, just out of curiosity, for an explanation of what her interpretation of what a Pocket Listing was. She stated that she would like our office agents to have a heads up before her new listing went on the MLS. She fully intended to put it on the open market and give it a proper and ample time frame to achieve the best possible net for her sellers No harm, no foul.

Unfortunately, many agents use the Pocket listing as a way to       double end a transaction without giving the property a fair chance at the market. These agents convince their sellers that they can save them the trouble of going on the market and even offer, in many cases, a discounted commission schedule. The problem is, if the listing is submitted to the multiple listing  services (MLS), the seller can often net tens of thousands of dollars more. I would equate this technique to selling an expensive watch or diamond ring at a garage sale versus placing them on Ebay thus allowing full exposure over a reasonable period of time. In the later case the seller would receive bids from a multitude of interested buyers and they could then choose from the highest and best buyer to the sellers best advantage.

The Stovall Team recommends the following 9  points with respect to pocket listings:

1. Generally speaking Pocket Listings are not beneficial to the sellers.

2. Always prepare your property and don’t rush to the market. Properly prepared and staged properties will always achieve a higher net to the seller, it’s a fact.

3. Always place your property on The Multiple Listing Service (MLS) and allow not less than 7 days buy preferably a  minimum of 14 days of market exposure before accepting an offer.

4. Don’t be rushed to accept an early offer even if it is  represented by your listing agent.

5. Do the math…even if you are offered a special  commission rate by your listing agent you could be saving as little as $2,500 to lose $10,000 or more. These figures are just an example but make a credible point.

6. Ask for references before you choose an agent.  The really good agents will have several satisfied clients willing to talk to you about the service they received, There are many good agents and finding the right fit for you is very important.    However, the 90/10 rule does apply, 90% of the business is done by 10% of the agents. Hiring the wrong agent can be like going on a bad date or worse.

7. Hire an agent that will spend time and money on the  marketing and selling your home versus spending most of their advertising dollars on promoting themselves. You’ll   appreciate the end result.

8. Ask your agent to provide their marketing plan. The Stovall Team will provide a concise step by step plan form listing to delivery of your proceeds check at close of escrow. As  interest rates go up and other sellers enter the market a proven plan will be invaluable to your bottom line.

9. Call or email  The Stovall Team today for the best real estate results possible. Put our 55+ years of combined real estate experience to work for you.

We are here to assist you whether you plan to put your home on the market within a week or a couple years from now. Contact us today!   We can design a plan to help you net more money for your home than our competition. Call Steve at 714.393.5377 or Micah at 714.343.9294.

By  Steve Stovall