There’s been a lot of talk in the real estate community, both local and national, about pocket listings. A pocket listing is loosely defined as a home that is offered for sale without being fully marketed to the general public – an off market sale or a Pre-MLS listing. So… what makes it so special? Only a few people, both home buyers and real estate agents, know about it.
So… what’s so hot about it? Its exclusivity?
Well… let me tell you… it’s bad news all around.
Home Sellers – home sellers are probably the biggest financial losers in this transaction. They lose major $s on the table by going Pre-MLS or pocket. It’s pretty common sensical. Their house is not marketed to all available buyers. Only a few know about it and consider it for purchase. These sellers will never know if they sold at or below market. My guess is most of them will be selling way below what they can get when their home is property prepared for sale and correctly marketed.
Home Buyers – a lot of them get so caught up in the exclusivity of it all that they do not go through the proper steps of investigating the home that they’re buying. They’re pressured to move forward with the sale because if they don’t “someone else will”!
Real Estate Agents – well… ethics and agency in a lot of these instances goes out the window. Whether driven by the need to double end a commission, make a quick sale, appear to have access to listing(s) that no one else has, whatever the reasons – the proponents of pocket or Pre-MLS listings are just not looking out for the best interest of the clients.
I am grateful that we do not see a lot of pocket listings in Pasadena. There are a few here and there, but they’re not as prevalent as they are on the west side. This, in this real estate broker’s opinion, is a slippery slope. Let’s hold on to our ethical standards and fiduciary responsibilities and provide the best possible service to our home buyers and home sellers.
Irina Netchaev is the founder and Pasadena Views Real Estate Team’s managing broker. She has been featured in Arroyo Monthly, Pasadena Weekly, Seth Godin’s companion e-book to “Tribes…We Need You to Lead Us”. Irina was one of the original organizers of RE BarCamp LA focused on educating real estate agent on using the latest technology to assist home sellers and buyers in achieving their real estate goals.
Thinking of selling your home? Interested in finding out the current market value of your single family home, condo or investment property? Then call Irina Netchaev at (626) 629-8439 to discuss what is happening in today’s Southern California Real Estate Market.