Some home owners interested in putting their home on the market are opting out of listing the property on a Multiple Listing Service at first. For a number of reasons, home sellers are asking agents to market the property by word-of-mouth instead of the traditional route where a home can be seen by many on an MLS. However, this isn’t necessarily a new phenomenon.
Commonly referred to as pocket listings, homes that are not posted on MLS sites are typically high-end homes. This gives the seller the opportunity to “test out the waters” of the market before even officially entering a database. Luxury homes are sometimes sold this way because home owners are not in a hurry to sell their homes but are instead more interested in getting the best price for the property.
“Despite what you might read in the newspapers about pocket listings being more popular, now systems and technologies make it easier for agents to communicate about them,” David Faudman, founder and chief executive of Top Agent Network, a community for agents, said. “It used to be that agents would whisper to each other, ‘I have something coming up.’ ”
Another reason why some people are opting for the secret listing of their luxury homes is that despite their best efforts, many high-end homes are on the market for an extended period of time, or reenter the market multiple times. This is due to custom finishes that may not appeal to everyone, and some homes go through several price cuts based on the market. When buyers see that the home is listed for a long time or has undergone these price cuts, they tend to think there is something wrong with it.
“While pocket listing is a strategy that can be used at any price point, it often has particular appeal to luxury buyers. Sometimes, as in cases of high-profile sellers who don’t want many people walking through their home, sellers never intend to list. More often, a seller’s agent will create some word-of-mouth buzz while marketing materials are still being assembled or closets are being cleaned out, Ames said,” according to the report by MarketWatch.
Current Conditions of Newport Beach Real Estate
According to Altos Research, a California-based real estate data analytics firm, there were 209 properties listed on the market in Newport Beach as of January 31. Of these homes listed, the median single-family home value is at $2,449,885. As the market conditions fare currently, sellers and buyers are fairly equal. Due to the low inventory, it’s possible that there are bidding wars taking place, driving the market out of the hands of buyers and closer into seller territory. However, trends have continued upward in Newport Beach, and the market has stayed strong throughout 2013 and into 2014.
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(all data current as of 10/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.