Understanding The Benefits Of Private Listings
There are many businesses within several industries that opt to keep assets sales quiet. In fact, private listings are done to prevent suspicion of sale among current staff and employees. For example, the hospitality industry is a people sensitive industry. With this in mind, any advanced knowledge of property sales may cause workers to find gainful employment elsewhere.
Asset sales have to be kept confidential for a myriad of reasons. For one, any knowledge of the sale may impair the sale itself with leaked information. Similarly, the workforce are responsible for generating cash flows and may feel cheated if they find out their office or building is on the market.
As an industry leading in private sales, many of our listings are confidential to prevent unnecessary stress and tension. In fact, we intentionally do not showcase all our listings, which help sellers secure the right buyers and investors across the board. Our highly dedicated team also works with asset owners every step of the way to prevent property sales or acquisitions from leaking out.
In the commercial real estate industry, there are pocket listings designed to ensure maximum confidentiality across the board. These are, of course, exclusive listings which are not open for the public at large to review. Sellers essentially let us know as broker that their properties may be sold if the right offers are available. Again, this prevents employees from lashing out at management, while quitting or opting to go elsewhere for work.
While somewhat similar, , there are differences between private and pocket listings. The latter is also known as a hip pocket listing, which sees a broker holding a signed listing agreement with the seller. This contract may be an exclusive right to sell the property for the broker but not advertised. Similarly, the broker agrees not to enter into a multiple listing system, MLS, which is very common for brokers across the real estate industry. As an exclusive listing, only the seller, broker and any authorized assigned parties have knowledge of the pending sale to a potential investor or buyers.
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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.
Interested parties will also work with the broker to submit timely offers on the property at hand. Similarly, they can ask to review how long the property has been on the market, as well as what the seller is asking for across the board. The latter may include upfront fees, along with a generous timetable for counter offers and negotiating. This keeps all parties involved on the same page and avoids unnecessary confusion or lack of proper communications.
While pocket listing do have several advantages, you also have to understand their limitations on the market. Again, these listings are intentionally private so they will have less exposure on the market as a whole. With this in mind, sellers may have to opt for lower prices if their properties are not sold to the right buyers with the right offers. This is why you need an experienced agent like Ricardo to help you weigh your options and choices carefully. With years of extensive industry experience, he can help you sell your property privately and only to the right, serious buyer who can match your asking price.
Commercial property owner in any industry
As a commercial property owner in any industry, there may be a time when you want to move your organization or business into a bigger venue. Such is the case when businesses expand and grow at alarming rates. In order to facilitate your needs, you need the right broker to work on your behalf across the board. He or she must be willing to help market your private listing only to serious investors at a broad scale. Similarly, your broker must ensure timely communications, and work hard to secure a favorable outcome for all parties involved.
For more information on pocket or secret listings, simply contact Ricardo today. He is a professional, seasoned and reputable agent with years of experience in commercial and residential sales. If your current property is no longer large enough to facilitate your business growth, it may be time to place your property on the market privately. This will prevent low ball offers from occurring and you are sure to find the right buyer in no time at all.