Woodbury East Pocket Listing Thanks to Homer (25 Calypso)

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usctrojancpa

usctrojancpa

Well-known member
I wanted to give a big thanks to Homer for putting me in touch with the owner of 25 Calypso (Coronado Plan 3) over in Woodbury East.  The owner was looking to sell the home as he was looking to move to a larger home.  I had gotten the listing and mentioned to the owner that I had a buyer who might be interested in buying the home as they really liked the Coronado Plan 3 layout (they thought that 43 Splendor needed too much work so they passed on that).  So I arranged a private showing of 25 Calypso for the buyer and they wanted to move forward on making an offer.  I sent my buyer all of the comp information and showed them the offer on 43 Splendor (which was going to close in less than 2 weeks) advising them to make their highest and best offer.  Fortunately, their offer was accepted and we opened escrow about a month ago.  I just got word from escrow that the transaction has officially closed (sales price of $780,000).  Congrats to both the buyer and seller on a very easy and smooth transaction.  Below is the Redfin link to the listing (the buyer and seller asked me to just include only the one required MLS picture which I took using my iPhone)... :P
https://www.redfin.com/CA/Irvine/25-Calypso-92618/home/40103151/crmls-OC15227999

Again, big thanks to Homer for the referral.  ;D
 
I've always wondered about pocket listings.  Is there a reason why the seller wouldn't want to list it on MLS to attract a larger pool of buyers?  I can't imagine that the seller got the best price possible.
 
woodburyowner said:
I've always wondered about pocket listings.  Is there a reason why the seller wouldn't want to list it on MLS to attract a larger pool of buyers?  I can't imagine that the seller got the best price possible.
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Some buyers prefer it to be a quick and painless sale.  Instead of having tons of people trek through their home they would take a very solid offer from a private showing.
 
woodburyowner said:
I've always wondered about pocket listings.  Is there a reason why the seller wouldn't want to list it on MLS to attract a larger pool of buyers?  I can't imagine that the seller got the best price possible.
Click to expand...

We were ready to list the home, but apparently the offer was good enough for the seller to accept it.  The home was occupied by the owner so there would have been an inconvenience for seller having to keep the home looking great for random showings during the week and weekend.  Ultimately, it was the seller that determined that the buyer's offer was high enough to not move forward with listing the home.  When I represent both the buyer and seller the seller ends up paying less in total commissions versus if the buyer is represented by another agent (i.e. the buyer agent commission is reduced).  I also showed both the buyer and seller the offer and counters on 43 Splendor (model match) so they both knew it'd close for $770,000. 
 
USCTrojanCPA said:
bones said:
I'm waiting for him to become the king of PP! 😜
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Haha  I sold about a dozen homes in there, just need a few listings to get the ball rolling on the listing side.
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@USCTrojanCPA - you will be the only agent in my pocket list of real estate agents  ;D 
 
woodburyowner said:
I've always wondered about pocket listings.  Is there a reason why the seller wouldn't want to list it on MLS to attract a larger pool of buyers?  I can't imagine that the seller got the best price possible.
Click to expand...

If I were selling my home, I'd love to sell it as-is with no showings and pay a realtor a flat rate to do the paperwork and let the buyer pocket the commissions as savings. Let's say my home has a market value of $900k and I expect to have to pay 4-5% in commissions when I sell it ($36k-45k). Wouldn't a buyer love to pay $855k?

Benefit to me as a seller is I don't have to deal with the following:
- Move half of my stuff into storage to de-clutter the home
- Stage the home by possibly borrowing or buying things and moving them, etc
- Getting the home cleaned before every open house (or possibly having my kids stay elsewhere between open houses)
- Having to frantically clean if there is a showing at a time other than an open house
- Risking that the strangers that go through the home are looking through my personal belongings or stealing things
- Are the realtors using my bed to have sex? (Had a co-worker that was a realtor on the side that everyone thought was having an affair and visiting his vacant listings at lunch)

I'm sure there's more. Selling your home and commanding a premium price is a huge pain in the you know what.
 
paperboyNC said:
- Risking that the strangers that go through the home are looking through my personal belongings or stealing things
- Are the realtors using my bed to have sex? (Had a co-worker that was a realtor on the side that everyone thought was having an affair and visiting his vacant listings at lunch)
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I'm sure that happens all too often. Heck, as a kid, I remember sliding open people's dresser drawers in their bedroom just to see what was in there! Never, ever took anything just wanted to look. But yes, now I realize the invasion of privacy. I truly believed going to "look at" a home actually meant "looking through" a home. I can't blame my parents for that one, though. They would scold me right away, telling me to knock it off. It took a few hand slaps until it sunk in and I never did it again. #BornCurious But you have to wonder how many parents don't know / don't care. There are a lot of parents who do not look after their kids properly. Or how many shady adults with bad intentions there are.
 
paperboyNC said:
woodburyowner said:
I've always wondered about pocket listings.  Is there a reason why the seller wouldn't want to list it on MLS to attract a larger pool of buyers?  I can't imagine that the seller got the best price possible.
Click to expand...

If I were selling my home, I'd love to sell it as-is with no showings and pay a realtor a flat rate to do the paperwork and let the buyer pocket the commissions as savings. Let's say my home has a market value of $900k and I expect to have to pay 4-5% in commissions when I sell it ($36k-45k). Wouldn't a buyer love to pay $855k?

Benefit to me as a seller is I don't have to deal with the following:
- Move half of my stuff into storage to de-clutter the home
- Stage the home by possibly borrowing or buying things and moving them, etc
- Getting the home cleaned before every open house (or possibly having my kids stay elsewhere between open houses)
- Having to frantically clean if there is a showing at a time other than an open house
- Risking that the strangers that go through the home are looking through my personal belongings or stealing things
- Are the realtors using my bed to have sex? (Had a co-worker that was a realtor on the side that everyone thought was having an affair and visiting his vacant listings at lunch)

I'm sure there's more. Selling your home and commanding a premium price is a huge pain in the you know what.
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Yea pocket listing that hits my (fair) asking price would be lovely.  Plus then your house pics aren't all over the internet waiting for Irvine Dream to look at :) :) :) :)
 
paperboyNC said:
woodburyowner said:
I've always wondered about pocket listings.  Is there a reason why the seller wouldn't want to list it on MLS to attract a larger pool of buyers?  I can't imagine that the seller got the best price possible.
Click to expand...

If I were selling my home, I'd love to sell it as-is with no showings and pay a realtor a flat rate to do the paperwork and let the buyer pocket the commissions as savings. Let's say my home has a market value of $900k and I expect to have to pay 4-5% in commissions when I sell it ($36k-45k). Wouldn't a buyer love to pay $855k?.
Click to expand...

My point is that you don't know the true value of your house until you put it up on MLS and get the entire buyer pool.  For example, I know exactly the house I want and have alerts set up in the specific neighborhoods.  If the house comes on the market, I'll bid aggressively on it depending on the location/upgrades/etc.  Value of the house might be say 1.2 million, but I wouldn't mind paying 1.25 if there is another buyer that is interested.  As a seller, I'm sure they would have been happy with 1.2 (if comps agree), but if I never knew it was for sale, I could not have bid it up to 1.25.

There are a lot of unknowns that could affect the buying price.  The biggest one people in TI talk about is feng shui.  Let's say a property with the address 14 and located on a T intersection sold for 1 million.  If I have no idea about feng shui, I might think my property is worth the same since it is a model match.  Someone offers me 1.015 and I feel like a big winner since I'm coming out 15k ahead.  In realty, my property might be worth 100k more since it does not have the feng shui issues.

I'm still not convinced on pocket listings unless I get an overly generous price.
 
woodburyowner said:
paperboyNC said:
woodburyowner said:
I've always wondered about pocket listings.  Is there a reason why the seller wouldn't want to list it on MLS to attract a larger pool of buyers?  I can't imagine that the seller got the best price possible.
Click to expand...

If I were selling my home, I'd love to sell it as-is with no showings and pay a realtor a flat rate to do the paperwork and let the buyer pocket the commissions as savings. Let's say my home has a market value of $900k and I expect to have to pay 4-5% in commissions when I sell it ($36k-45k). Wouldn't a buyer love to pay $855k?.
Click to expand...

My point is that you don't know the true value of your house until you put it up on MLS and get the entire buyer pool.  For example, I know exactly the house I want and have alerts set up in the specific neighborhoods.  If the house comes on the market, I'll bid aggressively on it depending on the location/upgrades/etc.  Value of the house might be say 1.2 million, but I wouldn't mind paying 1.25 if there is another buyer that is interested.  As a seller, I'm sure they would have been happy with 1.2 (if comps agree), but if I never knew it was for sale, I could not have bid it up to 1.25.

There are a lot of unknowns that could affect the buying price.  The biggest one people in TI talk about is feng shui.  Let's say a property with the address 14 and located on a T intersection sold for 1 million.  If I have no idea about feng shui, I might think my property is worth the same since it is a model match.  Someone offers me 1.015 and I feel like a big winner since I'm coming out 15k ahead.  In realty, my property might be worth 100k more since it does not have the feng shui issues.

I'm still not convinced on pocket listings unless I get an overly generous price.
Click to expand...

Also depends on many other circumstances too such as the condition of the market (slowing down maybe?) and the seller's circumstances (ie are they looking to buy something soon).  What if I told you that the seller wanted to be in escrow prior to him selecting a specific lot at a new home development that was coming up?  Point is that there are a lot of factors that go into deciding whether a pocket listing makes sense for the seller.  The seller could have easily told me to list the home and just have my buyers submit an offer like any other buyer.  Each situation is different.
 
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