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CLIENT SAYS YOU CAN SELL IT BEFORE WE LIST IT

By
Real Estate Broker/Owner with people first...then business Ran Right Realty 636943 licensed to thrill

I have a high-price listing for a nice product, good part of town, priced right and in immaculate condition. It is also a custom home with one of kind dynamics including special zoning and even a rental unit. The owner wants it picture perfect before we go MLS. He says to me, if you can sell it before we go and get paid more, its okay with him

SOUNDS GREAT

I have a structure in place where we will cooperate with buyer agents and another dynamic that says if I find a buyer on my own, it becomes more rewarding for both me and my selling client. Either way this unfolds, everyone involved now or in the future stands to profit. Sounds good so far

POCKET LISTING

Having this pocket listing is not as easy as it sounds. The property is in a high purchase bracket well priced and buyers at large just don't stumble into this type of investing or home purchasing. They are usually and wisely represented by an agent...So how do I attract a buyer for my personal purposes?

DUAL AGENCY

If I do get a principal that wants and agrees to let me perform all the duties and responsibilities for both the seller and the buyer, a whole new set of work rules kicks in. I am okay with "dual" representation as I can be very specific on what is going on and why. But it is labor intensive to say the least

MOTIVATION PLAYS A PART

The thing is, I don't like being motivated by just the money aspect of double ending a deal. It is not a good source to drive the Real Estate transaction for all concerned from my point of view and experience. Being a sellers agent, I take the fiduciary role very seriously. If I do the dual agency, the buyer comes under my wing as well. If it comes, fine. I just dont like it on point as the primary mover

FOR SALE BY AGENT?  (FSBA)?

Things like...How do I advertise the property comes to mind. It comes so close to me wanting to get my way instead of my clients way and I don't like the feeling. Trying to sell something before it is placed on the MLS so I can make more money sounds great but it doesn't present itself in an easy-peasy way

CAN'T SELL IT TO YOU RIGHT NOW?

What if when I am trying to sell it an agent inquires for their principal? What do I tell this person or for that matter my client? If this is a ready, willing and able scenario and all stand to gain, why would I refuse it just so I can make an additional dollar? My insides are telling me NO to this scenario

PRINCIPALS ONLY?

I had one possibility for a quick pre-sale and it didn't come to fruition. Also, my client doesn't want a sign on the property until we go MLS so how would I make known this place is for sale? Advertise on my own? How would the ad read? Would it say principals only please? Okay, so I get one.....

THE LONG STORY?

I have to explain to a buyer how I am going to prosper if they let me handle the whole thing. Right there I have trouble with it because I am a customer service person and I am always wanting to service the players first to full satisfaction. This has me in personal conflict with that business model.

IN MY CASE...

The bottom line? If someone comes my way, and it all makes sense and there is no moral compromises between any of the players and I can make this happen to all mutual satisfactions, I will. If not, I am going to wait until my client says...okay Rich...put your sign up and MLS it....Now that feels about right

Show All Comments
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

I've never had a problem with dual agency as long as all the proper channels and disclosures are followed. But given this scenario, the seller hired me first so although it would be nice to find a buyer on my own if it doesn't happen then it doesn't happen. I'm not going to burn too may calories on it. My job is to sell that house. I can't let money determine how efficient I should be. 

Apr 14, 2015 12:22 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Nicole...most excellent commenting and sharing...thank you N

Apr 14, 2015 12:58 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Dual agency is fine with me, if the listing agent discloses to the seller the disadvantages of not being in the MLS and no sign AND makes full disclosure to the buyer the risks of dual agency.

Co-op sales widen the buyer pool astronomically.  The more eyes that view a property the better for the seller.

When I have a listing, rare but it happens, mostly with folks to whom I sold a home, I prefer NOT to do dual agency, but represent the seller and sell to a customer and advise them of the fact that I represent the selller every time we speak.

Apr 14, 2015 01:04 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Lenn...We share the same thoughts here...Thank you for your input Lenn

Apr 14, 2015 01:10 AM
Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Colorado Broker / Referral Services

Dual Agency is not legal in our State, so that aspect is not an issue.  Do what is right, and maximize the opportunity for many buyers to know about this property, by placing it on the MLS.   Now, with that being said... seems to me that this situation will work if you had a specific buyer already in hand,  that wants to make an offer on this seller's home, prior to marketing it.  As long as the Seller understands the risk by NOT placing it on the MLS.  We have non-agency representations that handles double ending a transaction.

Apr 14, 2015 01:51 AM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Richie - I never really understood the concept of a pocket listing. The seller gets no exposure (other than from the one agent), no MLS, and wants no sign put on their property. The only way this is going to be sold is if the listing agent already has potential buyers waiting in the wings, and they have to be specifically interested in that particular home.

I am not opposed to dual agency either, but if I had a listing, I would want to try and sell that home to anyone and everyone, and not limit the opportunity to sell just so I could get both sides of the transaction.

I have heard other agents who say they will not even show their buyer clients a listing unless they get a certain percentage of commission - they actually limit what they show their clients by the commission they will be paid on the listing, not by what the buyer wants or needs. I am just not financially motivated in that way.

Apr 14, 2015 03:23 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Dan...most excellent commenting and feedback. thank you Dan Hopper 

Hello Troy...Professionalism in large doses this commenting of yours is. Thank you Troy Erickson 

Apr 14, 2015 04:02 AM
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