Los Altos Real Estate Blog

head_left_image

Off Market or Pocket Listing - What's the difference?

There are a lot of estates and luxury homes in Los Altos and Los Altos Hills that are made available by the seller without ever going on the MLS.  The definition of "off market" means selling a home off the MLS.  Since the MLS is considered "the market" and a very public place to promote a property, many sellers of luxury homes and estates decide for privacy purposes to sell "off market".

Placing a home for sale off market in Los Altos or Los Altos Hills means that the listing agent will make an active effort to promote the property in every means possible with two exceptions - no print ads and no placement on the MLS.  Everything else is the same as any other property - professional photos, staging, virtual tours, and more.  The details of the homes will be marketed to every agent in the area in an active effort to get a buyer.  That's the important difference, making an active effort to find a buyer.

The term "pocket listing" is generally regarded as being much less active and may be perfect for a seller for is just waiting to see if a buyer is interested.  The listing agent, if an active listing agreement is in place, will mentioned the property to a few agents but otherwise it's kept relatively quiet until a buyer makes their interest known.  What typically happens is that a buyer (or an agent with a buyer) will talk about an estate or luxury home in Los Altos or Los Altos Hills they're looking for but unable to find.  The agent with the "pocket listing" will pick up on this and mention the available property.  There is seldom anything more than the tax records and perhaps a photo or two but nothing else.  If the buyer is interested in the basic parameters of the property then a showing is scheduled.  If the home is a major estate, particularly those in Los Altos Hills, the potential buyer may need to sign a non-disclosure agreement indicating that all discussions of a sale are to be kept secret.

When negotiating the sale of a luxury home or estate in Los Altos or Los Altos Hills that is for sale off market, the question of price is always brought up early in the discussions.  The off market listing will often have a price already set but not mentioned specifically in the marketing materials.  They usually say "Price upon request".  The pocket listing may not have that figure in mind and will want the buyer to make an offer.  When determining the price of an off market property, the comparable sales used to determine that price should include both on market (via the MLS) and off market sales.  An experienced real estate broker can combine the two figures to arrive at a price.

 

 

If you have enjoyed reading my blog, please subscribe HERE!

 Want to know more about me?  Just Google Me! 

 

 Bryan Robertson, CEO | T: 650.799.9951 | Email: bryan@catarra-re.com | Website: http://www.BryanRobertsonHomes.com |CA BRE# 01191946 | Catarra Real Estate, Inc  | 171 Main St #220 | Los Altos, CA 94022

 

 

View Bryan Robertson's profile on LinkedIn

 

//

 

Comment balloon 6 commentsBryan Robertson • March 18 2011 03:42PM
Off Market or Pocket Listing - What's the difference?
share
There are a lot of estates and luxury homes in Los Altos and Los Altos Hills that are made available by the seller without ever going on the MLS. The definition of "off market" means selling a home off the MLS. Since the MLS is… more
Los Altos Hills Real Estate Activity - March 2011 So Far
share
The Los Altos Hills luxury real estate market has kicked into high gear in March 2011 with 8 sales closed so far this month with the average selling price just under $3 million. The biggest "on market" sale was a home on West Fremont Ave… more
Los Altos Hills Homes for Sale - Open House Update on 26462 Purissimma
share
I held open 26264 Purissimma Road in Los Altos Hills this weekend on Sunday. Officially is was open from 1:30-4:30 but I got there early and had it open at 12:30 and there were still cars pulling up at 4:45. Fortunately I was holding it open with… more
The Power of All-Cash Offers In Los Altos
share
The idea of buying a home "all cash" is appealing and in strong markets such as Los Altos or Los Altos Hills, it's almost a requirement. An all cash buyer can close in days, doesn't care about appraisals, and could make for a really easy… more
Los Altos Short Sales - Market Report for February 2011
share
As of now, there is only one short sale in Los Altos. This is no surprise since the market has been very strong for the past year and prices on homes likely to be short sales, at the low end of the market, have been selling over their asking… more
Behind The Scenes: Multiple Offers on Los Altos Homes for Sale
share
The spring selling season in Los Altos brings back multiple offer situations as the rule, not the exception. For homes priced below the average selling price, about $1. 6 million, you'll find that nice homes in good locations go fast. Los Altos… more
How Fast Do You Drop The Listing Price?
share
The old phrase "time is money" is more true in real estate than most industries. The longer a home sits on the market, the lower the final selling price relative to start price. This is true in Los Altos and the rest of Silicon Valley. … more
Hot Home Price Drop in Los Altos 10/11
share
1504 COUNTRY CLUB DRIVE, Los Altos 94024 MLS# 81040749 Listing Agent: Judy Bogard-Tanigami, Alain Pinel Realtors List Price: $5, 495, 000 PRICE DROP OF $1. 455 MILLION!! Days On Market: 0 Bedrooms: 5 Bathrooms: 4 and 1/2 Living space: 7, 585 SqFt Lot… more
Stronger markets, better banks, fewer foreclosures
share
Negative Media Spin The local media is back in the habit of negative spin with the SJ Mercury News publishing a headline entitled "Silicon Valley foreclosure data: signs of stress, but some improvement". The first line states that… more
Are the rich really the biggest mortgage defaulters?
share
Rich Defaulters? Hot off the New York Times presses this morning is a report that there are five homes in Los Altos - my primary market - coming up for foreclosure. Furthermore, this town, one of the most expensive in the country, is an… more