Sellers want top dollar. Their choice-timing for the closing and possession and with the least amount of inconvenience possible for showings, inspections, and appraisal visits. Listing brokers or agents interviewing for this (typically) higher-end business may imply these results can be achieved with a Pocket Listing. Pocket Listings are not open to other brokers or agents and not advertised through the MLS, Internet, or other typical means. Sellers beware.
The best sales price will be accomplished with the greatest exposure to all available buyers, the largest market possible. Pricing the property competitively, staging, cleaning, using professional photography, and making the home available to see, are all key to receiving an offer and negotiating the highest price and terms.
Pocket listing agents promise privacy. Unless the seller is Casey Anthony, Jerry Sandusky, or another one of America’s top hated people, there shouldn’t be a need for this extreme privacy. Celebrities move out of the property they’re selling and further capitalize on their brand to market their sale.
Some sellers go the Pocket Listing route because they’re only interested in selling if they can get the price they want, and they fear the DOM (Days on Market) timer is ticking on the MLS. Interpreted as the longer a house sits on the market, the lower amount a buyer will offer. Nobody knows the market as well as buyers and their agents.; they’re actively shopping everything available to them. Next in line are the appraisers, who dictate the price a bank is willing to lend on the property. Appraisers use documentation of past sales, buyers, and inventory available. So, if the seller isn’t willing to list their home at a price which can be documented by appraisers, or close to their competition, they should postpone thoughts of selling. Buyers rarely pay above appraised value. That would only happen in unique situations.
Author’s note — I was at a cocktail party at a really beautiful mansion home, talking with the owner. He asked me what I did for a living and when I told him I worked in real estate, he proudly disclosed to me that his house was Pocket Listed with the local “big name” realtor. He asked me to “bring him a buyer!!” then went on to say it was the community “way of doing business”. “You know, its old school here, Angela..” I asked him how long he’d be trying to sell; he told me “several months, maybe a year..”. His agent is retired.
He seemed to have the perception that a Pocket Listing is “posh”. But I have personally found that a multiple offer situation and a higher sales price is more impressive.