pocket listing

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erik265
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pocket listing

Post by erik265 »

I was about to put up my house for sale met a few brokers and before i even put up the house one of the brokers brought a customer and made me an offer. Its a decent offer but im not really sure what the house is worth i have a good idea through comps etc but its a custom style home hard to comp with great accuracy. They say some times first offer best offer its a unique house and its expensive not sure if i should put it on MLS to get more offers or just sell it now and go??? Who knows maybe i could get more or maybe i will sit on the house for a year and get less hmmm
pkcrafter
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Re: pocket listing

Post by pkcrafter »

I was about to put up my house for sale met a few brokers and before i even put up the house one of the brokers brought a customer and made me an offer
That broker is out of bounds, and I wouldn't accept the offer or work with him.



Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
Topic Author
erik265
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Re: pocket listing

Post by erik265 »

why do you say that??
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CAsage
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Re: pocket listing

Post by CAsage »

One of the things I thought you were supposed to do when interviewing brokers was to ask for a Comparative Market Analysis, which would guide how much they would list the house for. Depending on how much time you have to review this offer while thinking about it, it should help you determine whether it's a decent price. There of course is also the reduced stress of not having it for sale, no open houses to deal with... what is your time frame for selling? It's almost September, that means the peak season for listing is over for now. None of these are big swingers, just things to think about.
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.
EagertoLearnMore
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Re: pocket listing

Post by EagertoLearnMore »

"Pocket Listings" are common among high-end properties.

This offer could work well for you if you can keep the commission low because of so little work on their part and not officially listed yet.
Look at the comps in your area. The Spring market is over so that is something else to consider as well as the specific market in your area.
Good Luck on your sale and future move!
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goingup
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Re: pocket listing

Post by goingup »

I'm sure a realtor made up the "first offer is the best offer" meme.

I'd only take that offer if expediency and convenience were of the utmost importance. Otherwise, choose the realtor who has the most experience listing homes of a comparable (or more) value in your area and list it via the normal MLS route. I live in a very hot market and homes are being bid up past list. I wouldn't want to miss out on the gains that competing buyers will inevitably offer in a hot market. Maybe your housing market is different..
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unclescrooge
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Re: pocket listing

Post by unclescrooge »

erik265 wrote:I was about to put up my house for sale met a few brokers and before i even put up the house one of the brokers brought a customer and made me an offer. Its a decent offer but im not really sure what the house is worth i have a good idea through comps etc but its a custom style home hard to comp with great accuracy. They say some times first offer best offer its a unique house and its expensive not sure if i should put it on MLS to get more offers or just sell it now and go??? Who knows maybe i could get more or maybe i will sit on the house for a year and get less hmmm
I wouldn't reject it.
But I would say that you're only accepting offers after the first open house. Say your wife is out of town and unreachable or some other excuse.
mattshwink
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Re: pocket listing

Post by mattshwink »

I would agree about the comparative market analysis, I have gotten them both times I have sold a home. But if you didn't get one it could be hard to go back and get one after the fact (no harm in trying, though).

I would disagree with rejecting the broker on the basis of bringing an unsolicited offer. He has a client who is interested, and he brought an offer. There is nothing wrong with that.

One of the things that you stated is this is a custom home. That is somewhat of a red flag. If it is substantially different (either in size, finishes, or lot) from the surrounding homes does not mean it necessarily commands a premium. While everyone wants to live in the highest value house in the community no one wants to buy the highest priced home. Appraisers can also have difficulty valuing custom homes. Typically they look at wear and sq footage and then try to find comparable homes (size, wear, bedrooms, bathrooms, lot size). If they can't find anything comparable (and even if they do) they most likely will multiple the price/sqft of recent sales by the sq footage of your home and come up with a value.

That doesn't mean you take the offer, just be careful in valuing your home. One of the things to take into consideration with the offer is the compensation for the agents. If you don't have an agent (or even if you do) it sounds like you could negotiate a lower seller's agent commission based on them not having to list the house, hold open houses, etc.

You could also counter and see what they say, if you think you are far enough apart in details.
pkcrafter
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Re: pocket listing

Post by pkcrafter »

erik, CAsage has addressed a few concerns. When you say broker, are you talking about a RE agent?

Were you planning to sell yourself or use an agent? If you are going to use an agent, there has to be a lot of things reviewed, including the price that has to be determined before the home is listed, not to mention a contract. This broker ignored everything that should have been done and brought in a buyer without discussing anything with you. That's out of line.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
Topic Author
erik265
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Re: pocket listing

Post by erik265 »

broker did bring comps when i met her
so not totally awful
Topic Author
erik265
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Re: pocket listing

Post by erik265 »

"I wouldn't reject it.
But I would say that you're only accepting offers after the first open house. Say your wife is out of town and unreachable or some other excuse."

Would you list with same broker or competing broker?
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Bengineer
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Re: pocket listing

Post by Bengineer »

We have had good luck with:

1) Having a pretty good idea of what the house is worth - location, dig up the recent sales in the area, etc.
2) Picking a listing/selling agent after interviewing a few that sell similar houses in the neighborhood.
3) Spiffing up & staging the house & yard so they look their best.
4) Having a professional photographer take the pictures for listing.
5) Working with the agent to establish a price that is realistic in both your and their opinion and will sell the house in a reasonable time.
6) Considering all offers brought in by a deadline that's after the agent and prospective buyer open houses.

Doing this brought us multiple quality offers over asking.

A good selling agent will manage the staging, pix, agents and buyers and bring you market. That's what they bring to the table.
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Watty
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Re: pocket listing

Post by Watty »

pkcrafter wrote:
I was about to put up my house for sale met a few brokers and before i even put up the house one of the brokers brought a customer and made me an offer
That broker is out of bounds, and I wouldn't accept the offer or work with him.



Paul
The broker could be acting as a buyers agent for the buyer.

One option to consider would be to sign up with one of the other agents that you talked to and let them deal with that buyer and agent. You would of course need to pay a commission but you could ask for a 2% higher price to cover that.
erik265 wrote:They say some times first offer best offer its a unique house and its expensive not sure if i should put it on MLS to get more offers or just sell it now and go??? Who knows maybe i could get more or maybe i will sit on the house for a year and get less hmmm
A buyers first offer is unlikely to be their best offer.
NotWhoYouThink
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Re: pocket listing

Post by NotWhoYouThink »

"The first offer is the best offer" is what RE agents tell the seller to encourage them to accept the offer and move on. Less work and faster payday for the agents. Of course, sometimes it's true.
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