Apartment Building With Approvals For Additional Units
A newly-built luxury residential community in downtown Philadelphia, with over 200 currently renter-occupied apartment units, generating net operating income (NOI) exceeding $5 MM.
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Pocket listings are not just relegated to expensive commercial or residential properties. In fact, these sales can include properties of all sizes, prices and offers. Again, these are not open market listings since the agreement calls not to openly advertise the property. Brokers cannot negotiate sales unless expressly written and approved by the selling parties. Brokers cannot serve as real estate agents in the traditional sense and only governed by the particulars of the contract with the seller or organization.
As part of the agreement, the broker is given exclusive action to act on the behalf of the seller. However, the seller must also agree not to contact another broker if the property remains dormant for a while. This can cause a rift between the broker and seller, and possibly terminate the private listing altogether. As long as the broker and seller abide by the agreement at hand, there should not be any surprises or unforeseen scenarios.
Pocket listings are also beneficial for potential buyers and investors. This means they have first dibs on acquiring these properties and do not have to worry about competition from the public at large. It will be up to the seller and broker, however, to determine which segment of the real estate buying population is allowed to know about these private sales. Again, the general concern is to keep all particulars confidential so that workers are not alarmed and start spreading falsities and news.
To ensure these secret listings do sell, it is important for the broker to present the seller with only serious buyers and offers. For the seller, it also means lower commission costs since they are working with the agent directly and not a firm or middlemen. These listings are like the name suggests and it is ultimately up to the seller to decide if he or she wants the broker to use MLS to gain greater exposure and more offers.