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HomeOffice Exclusive / "Pocket" Listing .. is...

Office Exclusive / "Pocket" Listing .. is it the BEST thing for the Seller?

With the slowdown in the Real Estate market; it is no wonder that some Real Estate Brokerages are doing what they can to make their own business as profitable as possible. One such way to make more money is for a brokerage to sell their own listings; doing "both sides" of the transaction.

While this is a form of Dual Agency (when a Broker represents both Seller & Buyer); the Buyer may in fact have their own Agent; just with the same firm. Either way - the brokerage earns more in commission from the sale.

If the Total commission on the sale of the property is X%; 1/2 of X goes to the OTHER broker (less the split with their agent) and 1/2 is kept by the Listing broker (less their split with their agent). If they do 'both sides' of the sale; then they get the FULL X% (less the split with the agent(s) ).

One such Washington "Fine" Property brokerage has adopted the policy of holding all their listings "in house" for the first 7 days. This concept of Pocket Listings gives the Listing Brokerage a chance to try and sell them to their own buyers for the first week. It is not entered into the MLS and no outside brokerage is allowed to present an offer for the 1st full week.

These "Office Exclusive" listings may give the sellers the benefit of not having to deal with a large number of buyers traipsing through their home; they also DON'T HAVE the benefit of having lots of Buyer's traipsing through their home.

They don't have the power of the MLS. Don't have the exposure to every Realtor and Brokerage in town. Is it really in their BEST Interest?

Better yet; Do the Sellers REALLY UNDERSTAND this process? I would love to hear the spin their agents put on this process during their Listing Presentations.

Lastly; I wonder... There are still a few circumstances where the BEST Properties - Priced CORRECTLY - are receiving MULTIPLE offers. Do you think you are more likely to get Multiple offers if you have buyers from ONE Brokerage - or everyone in the city?

Call James for all your Real Estate needs and questions; servicing Virginia, Maryland and the Greater Washington DC area.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100
Washington DC 20016
202-351-5800 Main Office
Licensed in DC,MD,VA
Posted Tuesday Apr 29
(04/29/08 09:15PM) — Barbara S. Duncan ABR, CRS, GRI, e-PRO Searcy AR

I notice quite a few "pocket listings" come through our MLS, too.  You can tell because they say Sold Before Listed.  I think it has to do with agents standing in the halls mentioning things that they need to sell and another agent saying they may have that.  It could also be called selling through office gossip.....LOL

(04/30/08 05:01AM) — Rick Tourgee - Provincetown and Cape Cod

I am surprised your local board allows pocket listings or for an office to hold it for 7 days in the office.  Not allowed here, for those of us for follow the rules.  We must post the property on the MLS within 48 hours of obtaning the Seller signature.

(04/30/08 06:11AM) — Brian Block -- Northern Virginia & D.C. Real Estate

James, a "Pocket" listing is never in the best interests of the seller and I'm surprised that a company would actually have a formal policy to hold pocket listings.

(04/30/08 09:47AM) — Cynthia Tilghman, Realtor® Onslow County NC Home Specialist

North Carolina allows dual agency but the laws and rules about disclosure are quite strict.

(04/30/08 06:44PM) — Darrin Friedman

there is legal and then their is ethical...Washington Fine?  You decide.

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