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Redfin's "Price Whisperer" & Pocket Listings...Make You Say Hmmmmm

By
Real Estate Agent with Ansley Real Estate/Christie's International 262285

Does Redfin's “price whisperer” sound a lot like a sanctioned "pocket listings"? If it walks like a duck, quacks like a duck....then it's NOT a duck.

 

Redfin will allow home owners to get feedback on a price for their home before actually listing it for sale. “Price Whisperer” allows potential sellers to gauge the pricing of their home from potential buyers while giving buyers a “sneak peek” at homes not yet on the market. "The most important decision when selling a home is what price to charge," says Redfin CEO Glenn Kelman. "The traditional process often amounts to a high-stakes guessing game with tens of thousands of dollars at stake for the owner.”

Home owners provide the price they want for their home, while also getting advice from an agent. An agent then takes photos of the property and e-mails up to 250 active buyers with a question whether they would pay that price for this home. The address is not disclosed. Buyers are also asked if they’d like to tour the home.

....Getting advice from an agent, OK. Agent takes photos and emails active buyers, OK. Asks buyers if they'd like to tour the home, OK......

Redfin says the service is not intended to generate pocket listings. If there is interest in the property, the agent will recommend that the home owner list the property on the Multiple Listing Service before selling. “Selling directly to a buyer without listing the home on the MLS is called a ‘pocket listing,’ and generally does not benefit the seller,” according to a release from Redfin. 

Agents will recommend listing the property before selling? Selling to whom; the lead derived from the off MLS marketing? And once it's listed, is it sold immediately to that buyer or is it marketed via the MLS for some time? What happens if the seller gets a price they want prior to listing, do they list anyway just to pay the MLS fees? And who are the buyer's represented by? Dual agency? And what is the commission?

I could continue as there are no shortage of interesting questions here...

Comments (3)

Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Just did my own post with the same kinds of questions.  Buyers are to make value judgements off an email of a house with pictures?  It doesn't mention if the house are currently listed - it's just for a 'feeler' kind of price.  So it's whatever the seller can gouge out of the buyer.  Great way to sell homes!

Aug 05, 2013 04:30 AM
Emmary Simpson
Las Cruces Homes and Land - Las Cruces, NM
Serving Las Cruces, NM

This is just...well...wrong. You can't get a feel for prices with something like this! Yikes!!

Aug 05, 2013 07:05 AM
Anonymous
David Montgomery Jr, REALTOR®

IMO anyone taking this approach is just seeking a selling advantage and not allowing the cooperative MLS system to offer maximum market potential for the benefit of Buyers and Sellers.

Jul 01, 2018 07:41 AM
#3