Real Estate NewsSecret Listings Serve the Broker - Not the Seller
The only constant beside taxes and death is change...an oxymoron if ever
there was one. However, while there is little doubt that the real estate
business, like all other businesses, has and continues to undergo change, one
thing holds true. To position a home to sell for top dollar, it must be seen by
as many prospective buyers as possible.
That is why the continuing practice of holding "secret listings" or pocket
listings, as they are also known, is a disservice to sellers. It is in direct
conflict with an agent/broker"s fiduciary responsiblity to the seller to sell
the home for the highest price possible within the seller"s time frame.
True, it only takes one purchaser to consummate a sale - but it is also true
that the more a desirable property is seen, the greater is the chance that
competition will increase the final sale price. Nothing succeeds like a good
old- fashioned "bidding war" when it comes to getting top dollar for a
property. This is particularly true when the market is heavy with potential
purchasers and light in available inventory. Scarcity is a friend of the
seller and challenges the buyer.
So what does that say about secret listings? These are listings that some
real estate companies tell their sellers to let them keep in house. They are
listings that those companies withhold from advertising in the Multiple Listing
Service (MLS) and other publications. These are the two most visible and
effective means of communicating to other agents that a home is available for
sale.
It is a fact that in order to maximize exposure, every home must "sell" twice. First a home must be "sold" to the real estate professionals in the
marketplace. When they become aware of the listing, they in turn are able to
communicate the availability of that home to their anxious buyers. That sets
in motion the viewing, bidding and ultimate sale. It makes all the sense in the
world that without that buzz and excitement generated by the real estate
agents and their anxious buyers, the seller loses opportunities.
How can one quantify the potential loss to a seller created by the
small amount of exposure of an in-house listing, versus the maximum exposure
generated by all-out competition? Who knows? - probably thousands of dollars
out of the seller"s pocket?
But that"s not the whole picture. There are other factors that narrow the
advantages to the seller and simply don"t help them to achieve their goals.
The two commodities we seem to all possess in short supply are time and money.
We have talked about the potential loss of money to a seller, but what about
the time?
Most of the motivated sellers I have worked with over the years have a time
frame in mind to accomplish their task. The sooner the home is sold the sooner
they can sigh in relief. After all, even the most tidy among us finds it hard
to keep up with the home for showings. There are other time considerations.
Where are the sellers going? Do they have a new purchase to close on in a
given time frame? Is the move job-related and they are due on the job at the
new location at a fixed time?
The point is simply this. Which home will sell more expeditiously, the home
where only a handful of agents are privy to the sale or the one where all the
potential buyers are in on the opportunity? The answer is obvious to even the
most inexperienced agent.
While some companies lure sellers toward secret listings with
promises of exclusivity and elitism, the fact remains that homes that are not
well marketed and exposed to the most potential buyers will not fare as well
as those that are. The listing company must work to bring the seller the most
money the market will bear, in the least amount of time. That can"t be
accomplished when the listing company is more concerned about their own
interests then those of their sellers.
Like it or not, we are a country built on competition. Competition
creates opportunity and opportunity creates advantage. The only real secrets
that pocket listings hold are the seller"s time and money!
Let"s stop the practice of secret listings now.