Almost all of the dialog about a pocket listing centers around the slimy fingers of the greedy listing agent. Everyone (just about) agrees that if a listing agent holds a listing away from the MLS that he's obviously an evil pig that should be exposed and some how punished for not creating MORE exposure for his client.
Not always true. Never true in my business. Let me explain how and why my Pocket Listings are beneficial for my clients...
1. My pocket listings tend to last between 5 days and 1 month. 80-90% of the time my sellers ask for "time" to get the house ready before they want any showings. Usually about 2 weeks, but sometimes longer. I believe it would be a horrible waste of time for me to NOT put a for sale sign up in the yard. Limited exposure is better than NO exposure. I can't effectively tell other agents about my listing without a signed listing agreement. The sign out front gets calls. Period. While my seller is painting, making repairs and replacing the air-conditioner I can create a realistic interest list. I might even be able to sell the home! And even with another agent!
2. First and foremost, I welcome other agents to be a part of this marketing. If an agent were to call and say they had a cash buyer that was SERIOUS about seeing this home, then odds are I could talk my seller into permitting the showing. That simple.
3. This is more about early marketing than it is about "trying to double side the commission." The perception of a "coming soon" sign is not completely accurate or fair. Not in my world. I use Facebook religiously and am a member of multiple PRE-MLS groups. It's an excellent way to share listings with local agents who are frustrated about listings being gone "as soon as they hit the MLS." Agents are important to each other.
If I saw a listing that read "Coming Soon" and the listing agent didn't even make an attempt to "get me in" I would at the very least, become a bit skeptical. But event then, not completely judgmental.
How many times have you seen movie theaters do this? What about concept cars or pre-marketing for the next iphone? Pre-marketing happens all the time. It's done to create interest, questions, and maybe even a little bit of hype.
A seller should sign a listing agreement with a full understanding of what a "Coming Soon" rider means. they should be fully aware on the details. This is also when dual agency should be explained as well as sub-agency.
It's just about good intentions and plenty of communication. Be fair to buyers, agents and most importantly, your own client, and odds are very good you'll never be doing anything wrong.
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