Pocket Listings - The Pros and Cons
The real estate market has taken a sudden turn since the first of the year and in El Dorado Hills we are seeing homes come on the market and be pending already. I thought it would be good to look at the pros and cons of these pocket listings.
First let's recap what's been going on. For several years El Dorado Hills real estate has been a buyer's market meaning there was 6 month's of inventory or more. Buyers were in the drivers seat but were reluctant to buy because of the uncertainty of where the bottom was. If they bought, they wanted a deal that gave them some cushion in case the value dropped further. We were all seeing what the hit in home values did to homeowners.
As inventory levels of Foreclosures dropped the good deals started to dry up. Buyers could still find deals in short sales and with regular sellers who had to make a move, for a while at least. But the continued drop in inventory (supply) and the pent up buyers that had been waiting for a sign we had reached the bottom of the market (demand) created the market turn we've seen happen so quickly.
Inventory levels are at historic lows and home prices in El Dorado Hills have seen an approximate 12% increase since this time last year. We are now in a seller's market with inventory levels much below 6 months. We are seeing multiple offers on homes priced within reason, even in the upper ranges that is driving the purchase price above the listing price. Homes are selling within days of going on the market . We are struggling to get our buyers in to see a listing before it is gone.
Back to the Pros and Cons of Pocket listings. I'll identify the pocket listing as one in which the home is not really exposed to the market.
* less hassle in getting it prepared for the market (though homes that show better sell for more, homes are selling at all conditions).
* you don't have to deal with people tromping through your home (again homes are selling within days.
* you may be able to get a break on commission from your agent (though if you get much less for your home than possible, this is not a deal)
* Not getting exposure to the market doesn't bring you the highest price for your home.
* Missed opportunity from exposure to the market of finding buyers who will take into consideration your needs as a seller; for example, rent back time, a longer escrow, or maybe a tenant agreement you have.
In today's real estate market sellers are in the drivers seat. If your agent is not explaining this, are they really doing what's best for you?
I am a REALTOR® in El Dorado Hills with Lyon Real Estate. I love living in El Dorado Hills, where homes with views have become my passion. Working with both buyers and sellers, my concentration on homes for sale includes not only El Dorado Hills, but also Folsom and the Cameron Park vicinity. For more information on me or our wonderful area visit my website at www.DeeDeeRiley.com or email me at email@example.com. When you're ready to sell or buy a home – I would love to help! To read what my clients have to say about me and my service, visit my Client Testimonial page.
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By DeeDee Riley 2013 *All Rights Reserved*Pocket Listings - The Pros and Cons