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Health & Fitness

Why "Pocket Listings" Hurt Sellers!

Why a Pocket Listing Hurts Sellers in Sharon MA

When you are ready to sell your home in Sharon MA, I woud love the opportunity to earn your trust and business. Reading my blog posts, like this one, can help you get to know how I work, my beliefs and values, and my knowledge of the local real estate market. 

This post explains Why a Pocket Listing Hurts Sellers in Sharon MA.

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When I work with you to sell your home in Sharon MA, I will recommend that you allow me to list your home for sale in the Multiple Listing Service, MLSPIN. Listing your home in the multiple listing service is just ONE of the ways I will market your home to the broadest possible audience of buyers. Your listing in MLSPIN can be seen (and shown) by every agent, as well as any buyers who have signed up to receive alerts about new listings with features and a price range like your home. Marketing your home to the broadest possible audience is the only way to ensure that you receive the highest sale price possible.

What Is A "Pocket Listing"?

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When an agent gets written permission from sellers to not list their home for sale in the Multiple Listing Service, this listing becomes a "Pocket Listing". It means that the agent is going to keep your listing in his/her "pocket" and try to find a buyer through his/her own connections or the connections of those in his/her office. The conversation may go like this:

Agent: "I know it's hard to keep your house ready for showings for a long time. The agents in my office and I have buyers looking for a beautiful home just like yours. We can get it sold quickly and you won't have to leave your home for an open house or lots of showings. We don't even have to put it in the Multiple Listing Service to get it sold and I will reduce my commission fee for you. What do you think about that?"

There are some very good reasons why a seller may choose to request a "pocket listing". Issues related to celebrity, health, job offers and other personal reasons may encourage a seller to keep the attempt to sell their home as quiet and private as possible. However, "getting the highest price possible" is not one of the reasons to choose a "pocket listing".

Do the Math

In 2013, 53 homes in Sharon MA that were listed for sale between $400,000 and $449,999 sold for an average List Price to Sale Price (LP:SP) ratio of 98%. Let’s say your home was listed for $415,000.

        $415,000 x .98 = $406,700 is your sale price

If you were paying, for example, a 5% commission, you would pay:

        $406,700 x .05 = $20,335 in commission fees

The brokerage representing you and the brokerage representing the buyer would split that amount equally. The individual agent representing you and the agent representing the buyer would be paid out of the amount their brokerage collected.

If your agent told you that he would reduce the commission to, say, 4% if you let him “pocket” your listing it means your commission fee would be less. However, your home will not be marketed to the broadest possible audience because the agent is going to try to provide his own buyer or a buyer from another agent in his office.

Remember, the more potential buyers who see your home, the more competition for your home. This is what leads to you receiving the highest price possible for your home. A "pocket listing" means your home will not have sold for the highest price possible and you will have lost much more money than you saved.

Did you know that some brokerages will pay their agents a “bonus” if they keep your listing as a “pocket listing”. The brokerage benefits by collecting much more in commission fees than they would have if their agent only represented you. When you agree to a pocket listing, you give one agent control over the entire transaction.

Except for those rare times when a seller has very specific reasons for requesting a "pocket listing" it hurts the seller when their home is not listed in the Multiple Listing Service

My Commitment to You

What matters most to me is doing the very best job I can for you. I have chosen never to represent you and the buyer in the same transaction. If I have a buyer who is interested in your home, I refer that buyer to an agent in another firm so there is no conflict of interest. 

As your Realtor®, my goal is to market your home for sale to the broadest number of buyers possible, generate competition and sell your home for the highest price possible.

When you're ready to get your home sold, please call me so we can set up a time to talk. I will be happy to provide a free market analysis of your home so we can discuss your home's value in the current market.

Thank you for choosing me to get your home sold in Sharon, MA!

Nina Rogoff
Re/MAX Executive Realty
781-883-3764
ninarogoff@rocketmail.com
Read more at: www.livesharon.com
https://www.facebook.com/sharon.ma.usa

Nina grew up in Sharon, and lives and works in Sharon now. She and her husband are learning what it means to live with teenagers and a small, slightly hyper, 10-pound dog. 

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