Pocket Listings: Real Estate's Hottest Password That May Get You In The Door

It's May 2013 and the real estate market here in Los Angeles looks like the grand finale of the 4th of July Fireworks. It is just exploding. There is so much demand to buy a home right now, that there are a number of growing trends to help both buyers and sellers get the best outcome they desire. One thing that is popping up everywhere are Pocket Listings. So, what are pocket listings, how do they work and how can you find out about them? Well, here are all those answers:
A pocket listing is an agreement between the seller and their agent that they prefer not to have their home publicly listed on the MLS (multiple listing service). There are a number of reasons a seller may choose to do this. One may be that the seller lives in an home where they don't want just anyone off the streets to come walking though it.  This is typical of homes in affluent neighborhoods where the seller prefers that their agent find only qualified buyers through resources other than the MLS.  In today's market a seller may have other important reason to not have their home publicly advertised. I have heard a number of sellers say that prospective buyers have just knocked on their front door with no appointment or realtor by their side. This is not invasive but it may be a safety issue for the seller as well.  Therefore, some sellers are choosing to have their agent go out and find buyers themselves. Another thing that is happening all over is that some houses are getting 20 or more offers on them. Now I know what you may be thinking "How is having 20 offers bad thing?" right? Well folks, to sell a home, all you need is one good, strong offer.  Having 20 offers in front of you can, not only, be overwhelming, but there is a good chance that 18 of them aren't strong buyers that will be able to close the deal. If you have your eye on the market right now, you are seeing a lot of houses come "back on the market". This can be frustrating and time consuming for a seller to think their home is being bought...and then it's not.  Buyers don't believe they have the luxury of time where they can see the house a couple of times, think things through, weigh their options and then make an offer....and they are kind of right. They may not. So they are making offers on home just because the home is in their desired location and the price range is what they are looking for. Buyers are also assuming their offer may not be accepted so sometimes, they aren't even serious about making this offer. If I am listing your house and we decided that we are not going to put in on the MLS, I can find serious and well qualified buyers that are more likely to get you that good price you are looking for and actually follow through with the purchase. If you are a well connected real estate agent in the community, then you have surely been speaking with other agents that you know have good buyers ready to make a purchase, and that is how we find you one, or a few good buyers to choose from as oppose to the 20 that may or may not be real. Another reason to not publicly list your home may just be a convenience factor. You may not have a flexible schedule where you can make your home available for showings all the time. Or maybe you don't live in your house and you have tenants there. They may not want to open their doors a dozen times a day to let people in to see this house. So maybe, you just want your agent to bring a few serious buyers in to see and get an offer that way.
There are a number of reasons, as a buyer, you will want an agent that has their finger on the pulse of this market as well. Not only should your agent be connected with the agents in their office, but they should also be connected with the agents that are listing a lot of homes right now. I get to hear about these pocket listings and if I believe that my buyer will put in an offer at a respectable price, with good terms and conditions, then I may be able to get you into seeing these houses that aren't on the MLS. But please realize this, just because you are in the market to buy a home, doesn't mean that any agent will be willing to help you. Because the market is so competitive, your agent may need to know and understand that you are ready, willing and able to make a purchase before they decide to work with you. So if you are someone who is looking to buy or sell your home, and you have questions about how to go about doing it in the best possible way, call me and lets talk over your options. I look forward to hearing from you!