Some estimates are that nearly 1 out of 3 real estate transactions take place without being openly listed in an MLS. Truly a win-win situation!īuyer: The primary benefit for buyers is that they have exclusive access to a listing otherwise unavailable to the general public. The broker earns a higher commission while their client pays lower selling costs. For example a broker can agree to list a property for only a 4% listing fee, yet this would still be higher than the standard 2.5% commission that would otherwise be earned if the listing agent had to split a 5% listing fee with another broker. Even with a lower negotiated commission a broker can earn more through a pocket listing than in a regular 50/50 split. Pocket listings eliminate this issue because the listing broker can qualify a potential buyer on their willingness and ability to purchase before showing the property.īroker: The main benefit for the broker involved in a pocket listing is that they can earn a larger commission than with an public listing. During slower market conditions, there are many curious people that simply browse properties but do not actually intend to buy. Another advantage of a pocket listing for a seller is that their property will be sold privately without the inconvenience of an open listing. Seller: One advantage of a pocket listing is that the seller can negotiate a more favorable commission because there are fewer agents involved in the transaction. There are benefits to each of the 3 parties involved in a “Pocket Listing” (seller, broker, buyer): Now, you may wonder why anyone would be interested in doing something like this. However, certain listings are held as “Pocket Listings” and the same broker looks to represent both the buyer and seller. Normally, when a broker is hired to sell a property, the broker agrees to cooperate with other brokers in order to sell the property and therefore to share a portion of the total real estate commission paid by the seller. These types of listings are much more common in cities like New York, San Francisco and Los Angeles.Ī “ pocket listing” is a real estate industry term that describes a property for which a broker has a signed listing agreement with the seller, but where the property is never advertised publicly through a multiple listing system (MLS) or where advertising is limited for a period of time. A unique way to sell your property would be as a 'pocket listing'.
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