Question Details

Johnny Mowad, Real Estate Pro in Dallas, TX

What are your thoughts on "Hip Pocket" and "Coming Soon" Listings?

Asked by Johnny Mowad, Dallas, TX Wed May 22, 2013

I've been asked to be a part of the MetroTex task force looking into Hip Pocket and Coming Soon listings... I would like to hear from both real estate professionals and consumers as to what your thoughts are...

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Answers

4
What did the seller state they wanted?
Everyone assumes the 'prime' objective was highest price.
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There are many, many reasons why alternative marketing stratgies must be available to home sellers. There are simply too many agents with a single dimension marketing strategy which is 'Reduce the PRICE!"
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Well crafted altneratives can and do circumvent many of the issues lenders are imposing on the real estate market through fiat appriasals and puts inspectors gone goofy in the right context.. These alternatives, in very quck fashion, seperate the jelly beans from the real buyers.
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I concede that the comfort we have with the tried and proven traditional process keeps everone on a level playing field. What did my seller state they wanted? Sorry, it wasn't a level playing field but home field advantage. With that advfantage the home owner closed on time, in budget and with a minimum of anxiety. For many, that outcome is PRICELESS.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
1 vote Thank Flag Link Thu May 23, 2013
I don't mind hip pocket listings or coming soon. I think they are fine if handled fairly to all parties.

I believe in all fairness, that a listing should go on the market for at least a week or so to see what the open market brings. I borders price fixing to me when an agent doesn't allow for multiple offers or at least a few days on the market to see what offers come. Think about it. If I have a listing and even if I get a full price offer and it never goes on the market, maybe I could have gotten more for my client. If the market is that competitive you never know.

In DFW, properties are sold in less than a day many times over...

Flip side.... a close friend listed her house with her real estate agent she had used many times before, the agents partner within her office brought the buyer, never listed the home and got a full price cash offer. 3 years later, the house was sold and the buyer(owner now) sold the house with a $40000 loss... Needless to say, the listing agent was NOT from the office of the original agent who listed/sold the home.

Tells me, they should have listed the home and maybe helped their client differently. Especially cash offers, the buyers tend not to want to pay for an appraisal. They trust that the agent and think they have their best interest in mind. I question that as an agent and as a consumer prior to getting my license. Good for my friend but not for buyer/owner. I take issue with it from a professional perspective ~

I tell my listing client(s), I will put a sign in their yard when they are ready and if we get an offer early (before we open the listing to the public) ~ we are still listing the property for at least a week and weekend or maybe 2 before we accept any offer(s). There is just not enough homes on the market not to see what happens even if its a full price offer. We could get above list and better offers.
1 vote Thank Flag Link Wed May 22, 2013
Had a "coming soon" sign on a home in Foster City, never again. When a home is ready to sell, I will put it in the MLS and put a for sale sign in front of the home. Pre-emptive offers are sometimes not the best and highest. In foster city, we recieved 10 offers on a home in a fragile state.
0 votes Thank Flag Link Thu May 23, 2013
I don't think sellers understand, or at least properly evaluate the risks that Patricia McCrite brings up.

Yes, it's great to get a full price offer before the house is actually listed, or the first day, or whatever - I hear about this a lot. I even went on a listing presentation where the seller told me that one of my competitors bragged about selling several listings within a day of listing!

We brokers face an honest problem - we don't want to recommend a price higher than the market will bear, and we do want to recommend a price low enough to attract offers. However, I think it is dishonest to recommend a price that matches what one of your buyers can afford (or a co-worker's buyer) and sell it to them before exposing the property to the market.

Here in Seattle, it is common to expose properties for five to seven days, but it is not customary and there a lot of "first-come, first-served" situations. However, the NWMLS has explicitly banned pre-listing marketing to the public.
0 votes Thank Flag Link Thu May 23, 2013
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