What The MLS Doesn’t Want You to Know About Pocket Listings
The MLS recently ran a large ad in the Los Angeles Times entitled something like, “Don’t get SHORTCHANGED by a POCKET LISTING”
The ad gives the impression that basically all properties for sale should be listed on the MLS, and if the home is not listed on the MLS, then the home may sell for less than the market price. A pocket listings is any type of property for sale with a real estate agent who does not post it to a multiple listing service. A multiple listing service (MLS) is a service for cooperation of brokers, sharing and dissemination of property information to foster the transaction of real estate. MLS services are usually local, but web-based, and they are facing increasing competition from ever more powerful national and local real estate websites.
As a top Realtor who specializes in pocket listings, I will share with you the facts and fallacies of pocket listings. My team has helped more buyers and sellers with more pocket listings in Downtown than any other agents or brokers that we know of. We have been involved with nearly 500 pocket listings over the past 10 years. 45% of our buyers over the past several years have purchased pocket listings because they have been the smart choice nearly half the time.
Downtown Pocket Listings
Like all money matters, when it comes to financial results, buyers, sellers and agents must pay attention to supply and demand. The more buyers who find out about the property for sale, the faster and more money that it will sell for. So the questions is, “Does the MLS attract more buyers or does a pocket listing attract more buyers.” Most agents understand that, in terms of sheer numbers, the MLS will deliver more buyer prospect than a pocket listing without the MLS.
Since the MLS ad basically infers that pocket listings are a better deal for the buyer, it stands to reason that buyers are likely to be happy with pocket listings. And if buyers feel happy with pocket listings, then they are likely to buy the pocket listing property.
As for the agents who take part in pocket listings, they say that there are undeniable benefits of a pocket listing: privacy, exclusivity, excitement, speed, efficiency, profit for the agent, and satisfaction of the buyer and seller. Those are some great reasons to do pocket listings. So the question is: “When should a listing be a pocket listing, and when should the MLS be omitted from the marketing plan.” and “When should a pocket listing not be used?”
The answer may surprise you. While the MLS has recently lost some of its mandate, it is still one of the most important — usually THE most important medium to advertise a property. At the same time, a pocket listing does provide more privacy, more control, more freedom, more flexibility, exclusivity, and often more excitement, speed, efficiency, profit and satisfaction. So the answer is to do something that most agents have not yet figured out… a combination of MLS and pocket listing. Most agents have not yet figured out how, when or even why to do both.
One team has figured it out. The Corey Chambers team offers, “Your Loft Sold GUARANTEED or We Will Buy It” If a property is not sold within the listing term, then Corey Chambers will buy the property at a price agreeable to the seller. A combination of the MLS and pocket listing are part of the guaranteed sale process. This makes sense to take advantage of the distribution of the MLS and also use the power of a pocket listing.
More and more home sellers are taking the safe bet, and choosing to work with a real estate team that has the experience and knowledge to help sellers and buyers take full advantage of the power of the MLS while not missing out on the instant-sale capabilities of a pocket listing for sellers. Most buyers are oblivious to pocket listings, have no idea that they are missing out the unlisted bargain properties for sale. Buyers often notice that the best deals are selling before they have a chance to see them, and they cannot figure out why.
Here’s how buyers and sellers can each take advantage of pocket listings:
Sellers: Find out what your home is worth online. Visit LoftValueLA.com or CLICK HERE for a FREE online home evaluation.
Buyers: Beat out other buyers to the best deals. Get FREE priority access to pocket listings and listed properties as a VIP buyer. Visit LAsecretLofts.com to get started.
Where Did All of the Lofts Go? Pocket Listings and Other Unlisted Lofts in Downtown L.A.
Many Downtown loft seekers never see all of the properties for sale because they do not know how to gain access to unlisted lofts and condos called “pockets listings.” Most buyers, agents and brokers are unaware, and they do not have access to these special deals.
A pocket listing is a type of exclusive property for sale where a broker holds a signed listing agreement with the seller, but where it is never advertised nor entered into a multiple listing system (MLS), or where advertising is limited for an agreed-upon period of time. The reasons for a pocket listing may vary from the need for privacy or secrecy to discrimination, and some sellers may have their own reasons for not advertising a listing in conventional ways, including wanting to sell only to certain types of people. Several legitimate marketing strategies can also lead sellers to choose pocket listings. Pocket listings can be very appealing to buyers who seek exclusive opportunities. Other legitimate reasons for a seller to decide to do a pocket listing include the potential for a faster, smoother transaction when the listing agent has buyer clients who may be interested in the property. It can reduce the need for many showings to strangers.
Pocket listings may give buyers an extra advantage when searching for real estate which is not advertised anywhere else. The transaction typically only has one real estate agent, thus potentially lowering the overall commission costs. If the buyer’s objective is to look at all the available homes for sale in a given area, they would need to look at MLS and all private listings for sale.
In Downtown LA, pocket listings are a significant factor in the success of many buyers and sellers. Realtor Corey Chambers reports that 45% of his buyer clients purchased pocket listings over the past 2 years. And more than 80% of his team’s seller clients opted to keep the property off of the public market as a pocket listings for at least a short time in order to appeal to more fully qualified VIP buyers who are seeking extraordinary opportunities.
It’s easy to gain access! Buyers can request free access to the largest number of pocket listings, other unlisted properties and bargains with the pocket listing specialists at LAcondoInfo.com
Sellers – How to Unlist Your Downtown Loft: Pocket Listings, Pre-listings, Private Listings and Unlistings
Many potential sellers of Downtown lofts have rental tenants that they do not want to upset, or are otherwise not ready yet to be bothered themselves or to commit to revealing the property fully to the public. There is a type of listing for those who want to receive offers and sell the property without public listings and even without any showings to the general public.
There is one real estate team of Downtown Los Angeles loft specialists that has the largest number of fully prepared buyers under contract and ready to purchase. As many as 36 buyers with financing pre-approvals are looking today for special access to private listings. While most buyers are afraid or uncomfortable placing an offer before seeing a property, these special VIP buyers are fully educated on what to look for, know how to take advantage of special opportunities and are ready to place offers on Downtown lofts and condos. These buyers are the most astute, and are excited to place offers on properties that give an exclusive opportunity to the buyer.
The biggest secret in Downtown real estate is that 45% of transactions in the past 3 years were unlisted properties, not on the MLS and not on the internet. Most buyers and their agents did not know the properties were available for purchase. Only VIP buyers had access to the properties.
Here are the type of listings that sellers can take advantage of to get offers without fully publicizing the property for sale:
Pocket Listings – a listing that an agent shows to their clients only
Prelisting – a listing for the purpose of gathering leads and momentum before listing on the MLS
Private Listing – a listing that is not advertised at all for the purposes of privacy or secrecy
Unlisting – a listing for the purpose of receiving the largest number of offers while maintaining the level of privacy desired by the seller
With nearly half of transactions taking place off the market, buyers and sellers who are not connected with unlisted properties are missing out on a major slice of today’s real estate market, including many of the best deals, fastest and easiest transactions.
Buyers: Receive Priority Access To ALL New Listings That Match Your Home Buying Criteria, including the largest number of pocket listings in Downtown at http://www.lacondoinfo.com/vip_buyer.asp
NEARLY HALF OF THE BEST DEALS DOWNTOWN ARE POCKET LISTINGS, SECRET, UNLISTED PROPERTIES
With billions of dollars of new infrastructure and improvements in its historic revitalization and renaissance, Downtown Los Angeles is perhaps the most exciting real estate market in the world. It is no wonder that inventory of lofts and condos for sale is so low that most prospective buyers and investors fail to find the right deal. There is simple way to find the most hot deals, secret inventory called “pocket listings.”
Have you ever wondered why the best Downtown lofts seem to be sold before you see them? Many of those are pocket listings, properties that are shown to privileged buyers before they are listed on the MLS. Some of the best properties sell before they are ever listed. And many properties that sell within the first few days of a listing were already shown to priority buyers privately before the MLS listing was started. These are called “pocket listings.” This secret inventory of unlisted properties is the biggest secret in Downtown Los Angeles, and accounts for a lot more transactions than most people realize. In fact, nearly half of recent buyers bought pocket listings because, with less competition from other buyers, pocket listings not only provide the best chance of a successful transaction, they are the best, most amazing lofts in Downtown. Take a look at some recently sold properties at http://www.laloftsearch.comand know that more than 40% of those were pocket listings. Priority buyers were able to nab them before the general public, other agents and other buyers ever knew they existed.
Downtown Los Angeles Loft Market, Now Hotter Than Ever, Moves to Pocket Listings
Los Angeles, CA — The weather may be cooling down but demand for downtown Los Angeles Loft spaces is actually heating up. In these times of economic uncertainty, eagerness to own such spaces in Downtown L.A. has actually grown — causing more demand than ever for what spaces remain — and more positive proof that Downtown is the place to be. Keller Williams Realty Downtown specialists Realtor® Corey Chambers announced in 2011 that many signs of a market turnaround in the Downtown area were already becoming apparent, and now the numbers are in to confirm. Buyers and their agents adapt by implementing new strategies, such as finding unlisted properties called “pocket listings.” VIDEO: http://animoto.com/play/pGs2nhV1rhlxozgVEL9ziw
Downtown Los Angeles was one of the last places to see real estate prices fall, and now it’s among the very first to see them rise. Local economists report the reason for this is simple: demand is up, while housing inventory is down. Recently, the number of available properties for purchase has shrunk from 139 to 125 according to MLS statistics. As any smart investor knows, this means that it’s now officially a seller’s market as the average selling price has increased from 95.44% to 112.50% of the listed price. In addition, costs are increasing from the former low-end price of around $96,600 to $107,500 with the high-end price correspondingly rising from $1,966,300 to $7,250,000. Now, in fact, very few properties remain under $250,000 at all. Likewise, the number of days a property is on the market has decreased too, on average from 85 down to 55 previously, with the best properties averaging a mere five days on the market.
All of these numbers just demonstrate what Loft Living L.A. real estate professionals have been witnessing for nearly a year: greater demand means reduced inventory, higher prices and faster sales. Indeed, according to Realtor® Corey Chambers, who writes the L.A. Loft Blog, their experience is actually even more dramatic than these existing numbers indicate, because they deal with the highest quality properties that the Downtown area offers. “We have seen the number of purchases grow dramatically over the past few months alone,” he notes, “and we have even more closings in the next few months.”
With demand so high and increasing, Chambers points out that most of the successful purchases currently in escrow for his buying clients involve properties that are not listed and not advertised. Weary buyers usually find only frustration when searching online for properties. The lack of inventory presents itself as listings that inevitably turn out to be already sold or otherwise unavailable. Five out of seven of Chambers’ clients are purchasing so called “pocket listings,” exclusive properties that are never entered into the MLS. Most agents remain unaware of the listings. “What the Loft Living team offers is different and better than pocket listings,” says Chambers, “because we have dozens of unlisted properties to choose from.” The properties must be good. More than 50% of buyers who have seen them have purchased one. They sell almost instantly because they are priced to sell. The last 12 unlisted properties sold within hours, nearly all of which were not on the MLS and unknown by most other real estate agents.
Of course, given unpredictable gas prices and continued turbulence throughout the fiscal marketplace, it just makes sound sense — economic and otherwise — to live where you work and play, particularly now as Downtown L.A. continues its triumphant rebirth and redevelopment, the likes of which the area hasn’t experienced in decades. As demonstrated by an ongoing influx of stores and businesses, everything one could want or need is in enviably close proximity; where else would one find world-class museums, historic theaters, celebrated landmarks like the Dorothy Chandler Pavilion, Union Station, Disney Music Hall, and of course L.A. LIVE — all in the immediate vicinity of such unique and trendsetting housing opportunities?
Loft residence in exciting Downtown L.A. offers the kind of rare cosmopolitan atmosphere in a neighborhood that exudes historic and contemporary energy. For smart buyers eager to experience the best of both these vibrant worlds, Loft Living Los Angeles has proven itself time and again to be tops in its field.
For more information, contact Corey Chambers (213) 478-0499 or visit LAloftBlog.com
