I’ve got a secret!
There is a trend in the current Real Estate market to show and sell properties off the MLS. While I am not a huge proponent of this tactic, I have certainly found myself as an agent asking if this is, or is not, to my sellers advantage.
The simple answer is yes, it often is. Contrary to common sense it often winds up that sellers will net more, with less inconvenince if the property is marketed to a small group of top producing agents. Often when I suggest that we explore this as a strategy, a seller will give me that eye that says “you just want to do this because it is less work for you.” That my friends is NOT the case.
When I market a home off market I still prepare a website, a flyer and have an open house. I extensively email to my network and pitch it within my company. We get inspections and we complete disclosures. I get a preliminary title report and prepare a Buyer’s packet. I don’t advertise it in the paper or widely distribute this online. The result of this kind of approach is that I don’t get “new” business. My statistics show fewer sales, I don’t meet new buyers or sellers (since the people seening the property are usually other agent’s clients. If on the rare occasion the buyer is my client, I lose out on potentially a higher commission on both the buy and sell end. At the end of the day I have done what I feel is best for the seller, not for me.
You see when the decision to show a home off market is made it is always made because it is the right thing for the seller. It could be my advice had been to do some updates to the home which might cost several thousand dollars. Off market the seller can see if the home would sell for a good price without these updates. Off market also allows the seller to test the market. In one case another agent had floated a price that I felt was too high, so we proceeded with an off market plan. Had we gone on the open market, we would have had to reduce the price and have many more days as an active listing. This result 99% of the time with an even lower price.
Then, if the proeprty hasn’t sold, we will go on the MLS at a fair market price. We already know what the objections of buyers may be. We can streamline our marketing to deal with those objections and we will sell the home quickly at the best price possible.
This is a changing Real Estate world. Many buyers feel that the internet is all they need to find THE house. Realtors, so it would seem, are losing their value. When you realize there is a hidden market where 25% of the sales have orginated, you realize they are more important than even. And a Realtor who is well connected in the community they represent are worth their weight in gold.