Friday, August 1, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Selling your home? Know the perils of off-MLS listings

By
From page HS6 | June 07, 2013 |

California Association of Realtors

As California real estate market changes, so does the vocabulary of real estate. Once common phrases from the real estate recession such as distressed property, short sale and shadow inventory are fast being replaced as the real estate market improves by new phrases, such as equity sale, multiple offers and off-MLS or pocket listings.

While not a new concept, pocket listings are growing in number; as many as 10-15 percent of homes offered for sale today are off-MLS listings, according to one Multiple Listing Service.

Simply stated, a pocket listing is a property that is marketed without the benefit of being listed for sale on the MLS (i.e., “hidden” in an agent’s pocket). A property that is listed on the MLS has the advantage of being actively marketed to every real estate agent who belongs to that MLS and, through those agents, to their vast network of potential buyers looking to make an offer to purchase the property. Active marketing on the MLS usually includes open houses, broker tours and inclusion of seller’s property in the MLS’s download to various real estate Internet sites commonly used to search for properties.

On the other hand, as the term implies, a pocket listing generally is marketed by a single agent to one or a select few potential buyers. The marketing pool can be so small that, in some cases, other agents within the same brokerage or brokerage office may not even be aware that a fellow agent has a pocket listing.

Pocket listings are not illegal if the listing agent fully discloses the pros and cons to the home seller and follows rules that are designed to protect consumers. Nevertheless, many real estate professionals believe that off-MLS listings may not be in the best interest of the seller — particularly if a client does not know about the benefits of marketing his or her property through the MLS. To keep a listing off the MLS, a listing agent who is a participant of an MLS is required, under the rules of most California MLSs, to obtain a signed certification from the seller that he or she does not wish to sell the property via the MLS.

If a property is exposed to fewer potential buyers with a pocket listing, why would a home seller agree to one? Pocket listings sometimes are requested by celebrities, judges, prosecutors or others who wish to maintain their privacy.

The downsides to pocket listings may outweigh the advantages of pocket listings though. Primarily, the pool of agents and potential home buyers who will know the property is for sale and make an offer to purchase may be limited. That could significantly reduce the potential for multiple offers above the asking price, which is a frequent occurrence in today’s competitive market. With fewer offers, sellers may not be getting the best possible price for their home.

How can consumers protect their interests if their listing agent suggests an off-MLS listing?

Home sellers should ask their agent about the pros and cons of selling their home off-MLS. The pros are that the listing remains private if sellers wish to maintain privacy. The cons are that their home is unlikely to be exposed to the full population of potential buyers, which likely may decrease the chance a seller will obtain the highest and best price for his or her property.

A listing agent may ask his or her seller to sign a standard seller exclusion form (Seller Instruction to Exclude Listing from the MLS or CAR’s SEL form).  Sellers should be sure they fully understand what they are signing and the possible adverse consequences outlined in the form of not listing their property on the MLS.

Sellers should ask their agent to show their home and present all offers from both inside and outside his or her network.  That may increase the chances of obtaining a more accurate selling price and could help avoid any potential for violations of fair housing laws.

Finally, working with a knowledgeable Realtor is always a good idea anytime you are considering buying or selling a home. So is being an informed real estate consumer.

Comments

comments

.

News

Cameron Park house burns

By Dawn Hodson | From Page: A1 | Gallery

 
Supes delay petition

By Chris Daley | From Page: A1

Fire generated small city, inspired volunteers

By Dawn Hodson | From Page: A1 | Gallery

 
Sand Fire 95% contained

By Cole Mayer | From Page: A1

 
Two fires in town

By Cole Mayer | From Page: A3

SUV hits parked cars

By Dawn Hodson | From Page: A12

 
.

Opinion

The weekly Daley: The wrong side of history

By Chris Daley | From Page: A4

 
Billingsley’s bullets: Advice from my psychiatrist

By Bob Billingsley | From Page: A4

.

Letters

Water conservation

By Letters to the Editor | From Page: A5Comments are off for this post

 
Koby

By Letters to the Editor | From Page: A5

Debt reduction at EID with Coco?

By Letters to the Editor | From Page: A5

 
Time for change in CP

By Letters to the Editor | From Page: A5

Olives need less water

By Letters to the Editor | From Page: A5

 
EID rate discrimination

By Letters to the Editor | From Page: A5Comments are off for this post

Second Amendment

By Letters to the Editor | From Page: A5Comments are off for this post

 
Pollock Pines’ Fourth of July Parade

By Letters to the Editor | From Page: A5Comments are off for this post

.

Sports

Racing returns with big 5-division card

By Bill Sullivan | From Page: A9

 
Camp draws good numbers

By Jerry Heinzer | From Page: A9Comments are off for this post | Gallery

New law tackles gridiron concussion problem

By Mike Bush | From Page: A9 | Gallery

 
Outside with Charlie: Rafting denied

By Charlie Ferris | From Page: A9

Roundup: July 31, 2014

By Democrat Staff | From Page: A10

 
.

Prospecting

Sing while you paint

By Placerville Arts Association | From Page: B1Comments are off for this post | Gallery

 
Things to do: Aug. 1, 2014

By Democrat Staff | From Page: B2

The making of a champion

By Special to the Democrat | From Page: B2

 
Plenty of golden fun during SlugFest

By Democrat Staff | From Page: B2 | Gallery

Art on the Divide is showing new exhibitor

By Art On The Divide | From Page: B3

 
‘The Flu Season’ stirs emotions

By Ovation Stage | From Page: B4

Time to register for classes at Center Stage

By Center Stage Dance Academy | From Page: B5

 
Guitar group performs in Sutter Creek

By Sutter Creek | From Page: B5

Get a groove on in Sutter Creek

By Sutter Creek | From Page: B8

 
Chris Young in concert at Carson Valley Inn

By Carson Valley Inn | From Page: B8

The music continues at Bear Valley Music Festival

By News Release | From Page: B8

 
Sacramento Museums are celebrating

By Sacramento Association Of Museums | From Page: B9

 
.

Essentials

Weather stats

By Michael Raffety | From Page: A2

 
Crime Log: July 17-19

By Cole Mayer | From Page: A2

.

Obituaries

Lisa Oliver Rose

By Contributor | From Page: A2

 
Larry A. Randall

By Contributor | From Page: A2

Mark A. Smith

By Contributor | From Page: A2

 
Jeffie “Jeff” Lee Callahan

By Contributor | From Page: A2

Patsy Ruth Wing

By Contributor | From Page: A2

 
.

Real Estate

Decorating your home by the numbers

By Marni Jameson | From Page: HS4

 
Avoiding the deal killers

By Ken Calhoon | From Page: HS4

Hilltop home views outrank water-front views

Press Release | From Page: HS7

 
Luxury home sales jump

Press Release | From Page: HS11

 
Pending home sales decrease in June

Press Release | From Page: HS13

 
Sheryl Lindroos joins American Heritage

Press Release | From Page: HS17

Sunny Rosabella exudes a warm ambiance

Press Release | From Page: HS23

 
.

Comics

.

Home Source

Decorating your home by the numbers

By Marni Jameson | From Page: HS4

Avoiding the deal killers

By Ken Calhoon | From Page: HS4

Hilltop home views outrank water-front views

Press Release | From Page: HS7

Luxury home sales jump

Press Release | From Page: HS11

Pending home sales decrease in June

Press Release | From Page: HS13

Sheryl Lindroos joins American Heritage

Press Release | From Page: HS17

Sunny Rosabella exudes a warm ambiance

Press Release | From Page: HS23