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  • August 12, 2009 at 2:45 PM #16179
    tom
    Participant

    So, I just got a call from my mortgage broker checking in with me since i haven’t spoken to him for a few months as i’ve been waiting out this inventory mess. Anyway, after hearing my chief complaint about inventory, he has sent my info along to a Realtor that’s apparently doing pocket listings for these big investment firms that have bought houses in bulk from the banks. Talked to that guy a bit, saying he can send me houses that he’s got, i can go look at them and even put an offer on them even before they’ve been rehabbed, back out after the rehab, or wherever in the process. It’s not clear yet as it was a quick chat but the implication so far was that I might be able to get it without it ever being on the MLS. At a minimum, I like the idea of being able to look at these things without having to make a decision within two hours of being on the MLS or else there’s 40 offers.

    There’s a part of this that feels shady.. Shady to my benefit (unless there’s some outright fraud in here somewhere), but still. I get why the agent wants this, he gets both sides of the deal. But why would the investor firms let these go as pocket listings without the whole fan fare of bidding wars to get the best profit? Is it likely the firm doesn’t know he’s doing these as pockets or does this make financial sense for them in a way I don’t get (macro vs micro economics)? Anyone have some questions they suggest I ask when i chat with him again?

    August 12, 2009 at 2:50 PM #444018
    UCGal
    Participant

    [quote=tom]But why would the investor firms let these go as pocket listings without the whole fan fare of bidding wars to get the best profit? [/quote]

    It makes sense to the investors – it hedges their risk by lining up buyers ready to go in as soon as the house is ready. That will reduce the carrying cost expenses since, theoretically, it will go into escrow to you (or other pre-approved buyers) as soon as it is rehabbed. No marketing time needed.

    August 12, 2009 at 2:50 PM #444550
    UCGal
    Participant

    [quote=tom]But why would the investor firms let these go as pocket listings without the whole fan fare of bidding wars to get the best profit? [/quote]

    It makes sense to the investors – it hedges their risk by lining up buyers ready to go in as soon as the house is ready. That will reduce the carrying cost expenses since, theoretically, it will go into escrow to you (or other pre-approved buyers) as soon as it is rehabbed. No marketing time needed.

    August 12, 2009 at 2:50 PM #444618
    UCGal
    Participant

    [quote=tom]But why would the investor firms let these go as pocket listings without the whole fan fare of bidding wars to get the best profit? [/quote]

    It makes sense to the investors – it hedges their risk by lining up buyers ready to go in as soon as the house is ready. That will reduce the carrying cost expenses since, theoretically, it will go into escrow to you (or other pre-approved buyers) as soon as it is rehabbed. No marketing time needed.

    August 12, 2009 at 2:50 PM #444796
    UCGal
    Participant

    [quote=tom]But why would the investor firms let these go as pocket listings without the whole fan fare of bidding wars to get the best profit? [/quote]

    It makes sense to the investors – it hedges their risk by lining up buyers ready to go in as soon as the house is ready. That will reduce the carrying cost expenses since, theoretically, it will go into escrow to you (or other pre-approved buyers) as soon as it is rehabbed. No marketing time needed.

    August 12, 2009 at 2:50 PM #444212
    UCGal
    Participant

    [quote=tom]But why would the investor firms let these go as pocket listings without the whole fan fare of bidding wars to get the best profit? [/quote]

    It makes sense to the investors – it hedges their risk by lining up buyers ready to go in as soon as the house is ready. That will reduce the carrying cost expenses since, theoretically, it will go into escrow to you (or other pre-approved buyers) as soon as it is rehabbed. No marketing time needed.

    August 12, 2009 at 2:51 PM #444560
    urbanrealtor
    Participant

    Yeah.
    Ask what benefit is it to the seller for pocket listing them.

    Bear in mind that it may be the seller and not the agent who wants them off the MLS.

    I have seen that a lot lately.

    I would still be diligent and look for comps.

    Good luck.

    August 12, 2009 at 2:51 PM #444628
    urbanrealtor
    Participant

    Yeah.
    Ask what benefit is it to the seller for pocket listing them.

    Bear in mind that it may be the seller and not the agent who wants them off the MLS.

    I have seen that a lot lately.

    I would still be diligent and look for comps.

    Good luck.

    August 12, 2009 at 2:51 PM #444222
    urbanrealtor
    Participant

    Yeah.
    Ask what benefit is it to the seller for pocket listing them.

    Bear in mind that it may be the seller and not the agent who wants them off the MLS.

    I have seen that a lot lately.

    I would still be diligent and look for comps.

    Good luck.

    August 12, 2009 at 2:51 PM #444806
    urbanrealtor
    Participant

    Yeah.
    Ask what benefit is it to the seller for pocket listing them.

    Bear in mind that it may be the seller and not the agent who wants them off the MLS.

    I have seen that a lot lately.

    I would still be diligent and look for comps.

    Good luck.

    August 12, 2009 at 2:51 PM #444028
    urbanrealtor
    Participant

    Yeah.
    Ask what benefit is it to the seller for pocket listing them.

    Bear in mind that it may be the seller and not the agent who wants them off the MLS.

    I have seen that a lot lately.

    I would still be diligent and look for comps.

    Good luck.

    August 12, 2009 at 2:59 PM #444227
    CA renter
    Participant

    [quote=urbanrealtor]Yeah.
    Ask what benefit is it to the seller for pocket listing them.

    Bear in mind that it may be the seller and not the agent who wants them off the MLS.

    I have seen that a lot lately.

    I would still be diligent and look for comps.

    Good luck.[/quote]

    UR,

    WHY would a seller want to avoid listing?????

    I’ve seen these too, but can’t fathom why a seller wouldn’t want the greatest exposure to his/her listing.

    August 12, 2009 at 2:59 PM #444633
    CA renter
    Participant

    [quote=urbanrealtor]Yeah.
    Ask what benefit is it to the seller for pocket listing them.

    Bear in mind that it may be the seller and not the agent who wants them off the MLS.

    I have seen that a lot lately.

    I would still be diligent and look for comps.

    Good luck.[/quote]

    UR,

    WHY would a seller want to avoid listing?????

    I’ve seen these too, but can’t fathom why a seller wouldn’t want the greatest exposure to his/her listing.

    August 12, 2009 at 2:59 PM #444811
    CA renter
    Participant

    [quote=urbanrealtor]Yeah.
    Ask what benefit is it to the seller for pocket listing them.

    Bear in mind that it may be the seller and not the agent who wants them off the MLS.

    I have seen that a lot lately.

    I would still be diligent and look for comps.

    Good luck.[/quote]

    UR,

    WHY would a seller want to avoid listing?????

    I’ve seen these too, but can’t fathom why a seller wouldn’t want the greatest exposure to his/her listing.

    August 12, 2009 at 2:59 PM #444033
    CA renter
    Participant

    [quote=urbanrealtor]Yeah.
    Ask what benefit is it to the seller for pocket listing them.

    Bear in mind that it may be the seller and not the agent who wants them off the MLS.

    I have seen that a lot lately.

    I would still be diligent and look for comps.

    Good luck.[/quote]

    UR,

    WHY would a seller want to avoid listing?????

    I’ve seen these too, but can’t fathom why a seller wouldn’t want the greatest exposure to his/her listing.

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