Do off-MLS listings cause sellers to ultimately fetch a lower sales price? Yes, according to the Jackson Fuller Real estate team in San Francisco, which sought to find out in a study of sales prices of MLS-marketed and off-marketed homes so that they could better advise their home sellers. The brokerage compared 2013 off-MLS and MLS sales prices of San Francisco residential sales. They scanned tax records for residential real property transfers for 2013 and gathered MLS data from the San Francisco Association of REALTORS®. In 2013, about 89 percent of homes were marketed on the MLS compared to 11 percent that were off-MLS in San Francisco, according to their findings.
MLS-marketed single-family home sales averaged a 17 percent higher sales price than off-MLS sales, the brokerage found. The average sales price for a single-family home sold without MLS marketing was $1,069,456, about 17 percent less than the average MLS-marketed sales price of $1,290,112, according to the report.
MLS-marketed condo sales averaged 9 percent higher sales price than off-MLS condo sales, according to the tax records for existing resale homes. The average sales price for a condo sold without MLS marketing was $890,070 compared to $973,916 average for MLS-marketed sales, according to the brokerage’s analysis.
“According to our calculations, in 2013 the decision to keep a property off the MLS cost the average condo seller around $84,000 in foregone profits while the average single-family home seller passed up about an additional $221,000,” according to the report. “Based on the data we’ve seen to date, we believe that unless a seller specifically instructs us that the highest possible sales price isn’t their number one objective, the best way to ‘win’ for our sellers requires MLS marketing.”
Article from: Brokerage Shows Why Sellers Should Rethink Pocket Listings
DAILY REAL ESTATE NEWS. Original Article Link
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Definition of ‘Pocket Listing’
Any listing that is retained by a listing broker or salesperson who does not make the listing available to other brokers in the office or to other multiple listing system (MLS) members. When a real estate professional is hired to list and sell a property, a listing agreement is in writing. Often real estate agents and brokers agree to cooperate with other agents and brokers and share a portion of the total commission paid by the seller. In a pocket listing, a property will not be listed in a MLS, and therefore there is no agreement to work with other real estate professionals. Reasons for a pocket listing include the seller’s desire for privacy or to sell to a certain individual. Also referred to as an “exclusive listing.”
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