irvinebullhousing
Well-known member
What is the advantage of pocket listing for both parties and you?
Newer Irvine listings with crazy WTF asking prices from equity sellers
- Thread starter usctrojancpa
- Start date
NEW -> Contingent Buyer Assistance Program
Wow, this one makes me feel like I could have bought the small lot Highland 1. ;D
You might get $2m+ for your Mulberry, especially if you have a shark agent.
Lower commission, no showings, no open houses, private showings, and seller dictates all terms including an extended rent back which may not be possible with many buyers.
It seems in this market, a pocket listing is a huge disadvantage to the seller. There are some crazy buyers out there and there is no way a pocket listing will reach these potential buyers. Is not having to show your house really worth potentially losing 10s of thousands of dollars??
We plan on moving but if I knew of a buyer who wanted to pay a good amount, it would be nice to not show it, but it seems like that ends up being low ball offers and I'm not willing to go that route. Maybe if I had a million dollar home in irvine where there are more buyers it would work ok, especially if I had kids/babies which means it's very hard to keep the place in great condition every day all day.
It really depends on each seller's situation. Contingent buyers in this market are completely stuck in quicksand because if I were to list their homes for sale, there's no guarantee that I can get them a rent back beyond 3-4 months. Then we would be on the clock to find a home to purchase and in this market there's brutal competition to get a home into escrow. Then if we don't find a home within 30 days of their rent back expiring, now I need to find them a rental and the rental market is on fire with homes renting in days and going over asking price.
So pocket listings can work well for contingent buyers where their buyer provides them an unlimited rent back. Are they going to get the absolutely last dollar from selling their home via a pocket listing? Of course not, but the buyers who buy their pocket listings know the market and pay a fair market price. The seller also pays a much lower commission which saves them 5 figures in closing costs and they get an unlimited rent back with no showings, prepping the home to sell, and open houses. Some of these sellers value piece of mind, speed, less hassle, time, privacy, and certainty over getting a few % lower on the sales price.
Take my 60 Kestrel pocket listing. The seller got very close to what a very similar floor plan closed for at 178 Firefly ($1.165m) which closed right as my buyers were making offers on 60 Kestrel. Could they have gotten $1.165m or a little higher? Sure but they'll be paying more in commission and they would have missed out on the Phase 2 Sierra home and would be looking at Phase 3 which will be at least $20k-$30k higher in sales price. So you see, it's a case-by-case where there are a lot of variables to consider whether to do a pocket listing or an open listing.
As someone who sold via pocket listing to get a new construction last year, this is 100% right on the money. There's more than just top dollar for a sale given other circumstances, and a lot of potential savings with less moving costs, getting an earlier construction phase, commission savings, etc. Not always about the last buck... my time and mental energy is my most valuable asset and I saved a ton of those in spades.
If you don't need it, then sure go for the highest bidder and get that cheddar. But in some situations this kind of option is very valuable.
Exactly how my pocket listing sellers feel. Also, many of my sellers are now looking at gains north of the $500k gain exemption so anything over a $500k becomes taxable so that has to be thrown into the equation as well.
Exactly, there are a lot of moving pieces when it comes to a real estate transaction....not just price.
1.39M looks like a teaser price to get bids racking up.
That's a lot of sq ft for a 4 bedroom house.
CalBears96
Well-known member
Danimal said:
Wow, this one makes me feel like I could have bought the small lot Highland 1. ;D
scubasteve
Active member
Is it time to list Mulberry????? This is nuts.
usctrojancpa
Well-known member
scubasteve said:
You might get $2m+ for your Mulberry, especially if you have a shark agent.
usctrojancpa
Well-known member
Compressed-Village said:
Lower commission, no showings, no open houses, private showings, and seller dictates all terms including an extended rent back which may not be possible with many buyers.
woodburyowner
Well-known member
USCTrojanCPA said:
It seems in this market, a pocket listing is a huge disadvantage to the seller. There are some crazy buyers out there and there is no way a pocket listing will reach these potential buyers. Is not having to show your house really worth potentially losing 10s of thousands of dollars??
Ready2Downsize
Well-known member
woodburyowner said:
We plan on moving but if I knew of a buyer who wanted to pay a good amount, it would be nice to not show it, but it seems like that ends up being low ball offers and I'm not willing to go that route. Maybe if I had a million dollar home in irvine where there are more buyers it would work ok, especially if I had kids/babies which means it's very hard to keep the place in great condition every day all day.
usctrojancpa
Well-known member
woodburyowner said:
It really depends on each seller's situation. Contingent buyers in this market are completely stuck in quicksand because if I were to list their homes for sale, there's no guarantee that I can get them a rent back beyond 3-4 months. Then we would be on the clock to find a home to purchase and in this market there's brutal competition to get a home into escrow. Then if we don't find a home within 30 days of their rent back expiring, now I need to find them a rental and the rental market is on fire with homes renting in days and going over asking price.
So pocket listings can work well for contingent buyers where their buyer provides them an unlimited rent back. Are they going to get the absolutely last dollar from selling their home via a pocket listing? Of course not, but the buyers who buy their pocket listings know the market and pay a fair market price. The seller also pays a much lower commission which saves them 5 figures in closing costs and they get an unlimited rent back with no showings, prepping the home to sell, and open houses. Some of these sellers value piece of mind, speed, less hassle, time, privacy, and certainty over getting a few % lower on the sales price.
Take my 60 Kestrel pocket listing. The seller got very close to what a very similar floor plan closed for at 178 Firefly ($1.165m) which closed right as my buyers were making offers on 60 Kestrel. Could they have gotten $1.165m or a little higher? Sure but they'll be paying more in commission and they would have missed out on the Phase 2 Sierra home and would be looking at Phase 3 which will be at least $20k-$30k higher in sales price. So you see, it's a case-by-case where there are a lot of variables to consider whether to do a pocket listing or an open listing.
irvinebullhousing
Well-known member
The other crazy route is FSBO. What do you all think about this in the midst of melt up? What are the advantages and disadvantages, would like to hear it it from realtors and homeowners with or without experience but tempting to save a few bucks.
mythicquest
Member
USCTrojanCPA said:
As someone who sold via pocket listing to get a new construction last year, this is 100% right on the money. There's more than just top dollar for a sale given other circumstances, and a lot of potential savings with less moving costs, getting an earlier construction phase, commission savings, etc. Not always about the last buck... my time and mental energy is my most valuable asset and I saved a ton of those in spades.
If you don't need it, then sure go for the highest bidder and get that cheddar. But in some situations this kind of option is very valuable.
irvinehomeowner
Well-known member
What's better?
Pocket listing or a bidder buying service like Sundae?
Pocket listing or a bidder buying service like Sundae?
usctrojancpa
Well-known member
mythicquest said:
Exactly how my pocket listing sellers feel. Also, many of my sellers are now looking at gains north of the $500k gain exemption so anything over a $500k becomes taxable so that has to be thrown into the equation as well.
sleepy5136
Well-known member
put up a listing on MLS and mention that interested parties come to the place on a certain day/time to have a bidding session. Highest bidder wins. No commission paid on either side.Compressed-Village said:
The Motor Court Company
Well-known member
there is more than just sale price. How about all the contingencies, cash vs financed, free rent back and deposit amount?etc
sleepy5136 said:
usctrojancpa
Well-known member
The California Court Company said:
Exactly, there are a lot of moving pieces when it comes to a real estate transaction....not just price.
sleepy5136
Well-known member
that's fine. The owners can finalize all of that in the bidding session. hire an attorney if needed. someone doing FSOB should know a lot of leg work is done by them (marketing, showings, etc).The California Court Company said:
Irvinehomeseeker
Active member
Cares said:
1.39M looks like a teaser price to get bids racking up.
The Motor Court Company
Well-known member
https://www.redfin.com/CA/Irvine/59-Chasma-92618/home/167386450
According the listing agent's Weibo posting one week ago, he has 33 cash buyers (presumably foreign) waiting for new listings...
According the listing agent's Weibo posting one week ago, he has 33 cash buyers (presumably foreign) waiting for new listings...
CalBears96
Well-known member
The California Court Company said:
That's a lot of sq ft for a 4 bedroom house.