What does it mean to list your house privately? While it’s not for everyone, there are scenarios when a private listing makes sense for a seller. Let’s talk about them!
What is a Private Listing?
A private listing is when a client reaches out to a Real Estate team such as ours, expressing interest in selling their house, but only if and when we have a suitable buyer. This is also referred to as a “pocket listing.” Once engaged, we selectively reach out to potential buyers who are already on our radar, as well as others in our network who we know might be interested in the property. Sometimes that Buyer does not cross our path for a while.
Sellers who choose a private listing typically value privacy above all else. Contrary to popular belief, private listings are not just reserved for the most expensive houses. Privately listed properties could take days or years to sell. Again, most sellers who opt to list privately are mostly concerned about privacy, such as not wanting the selling price of their home to be made widely available.
Do Private Listings Sell for Less?
Private listings do not necessarily sell for less – or more – than typical properties. As Real Estate professionals, it is our responsibility to determine fair prices for every property, including private listings.
There are also instances where a buyer may offer more than the private listing price. They may feel that this is worthwhile, so they can avoid dealing with negotiations and multiple offers that may occur when a house is traditionally listed.
What are the Advantages of a Private Listing?
Private listings are less invasive to the seller because there is typically no staging, professional photography, open houses, or showings. Also, when we execute a private listing, we ensure the utmost privacy for our clients, from beginning to end.
Most real estate agents will include a private sale in the MLS (MLS feeds to Zillow, etc.) after it’s finalized so it can be counted towards their transaction history. But at Sandra Ranck Real Estate, we refrain from taking that route. We stay true to our commitment to providing a completely private transaction, avoiding any MLS entries. This results in the sale’s details remaining undisclosed (unless someone goes to the courthouse to uncover them.)
Private Listings in Brown County
Our private listing transactions in Brown County have increased in recent years, which is surprising! For instance, we recently sold a private listing valued at $2 million. The seller had expressed a desire to sell three years ago and it took a while for the perfect Buyer to cross our path.
Considering these transactions are not public, it can be hard for some to understand why someone would prioritize privacy over getting the most money for their property. We’ve found that people opt for this method when they want to avoid their sale price being so public, maintain the privacy of their home, and value the ease of not listing. They are not motivated by the most amount of money for the sale of their home.
Private listings are suitable for those who want the utmost privacy in their transactions. The majority of people will naturally want to get the most out of their property, which requires making it seen by as many potential buyers as possible. But there will always be a handful of sellers who are less concerned about maximizing profits and more interested in receiving a fair price while maintaining privacy.
A private listing is not a route you take before listing to see if you can avoid listing. Why? Because you will be an old listing before you ever get the chance to be a new listing. You miss the momentum and excitement of being new to the market if you shop yourself around first. This is an example of where a private listing route is a definite disadvantage. Be cautious of anyone telling you differently.
If you’re considering a private listing, make sure you choose an agent who knows this process and the market inside and out. This is to avoid situations where you may end up asking significantly less for your property than it is actually worth. Trust your private listing to an experienced agent who can provide an accurate and fair price. We recently had a potential Seller sell privately to a Buyer who approached them with what seemed like a crazy amazing sale price to them. They left about $75,000 on the table. I just about had a heart attack for them.
The private listing route works beautifully for the right seller. Is not for everyone for sure. We are here to discuss should you have any questions. Oh…and yes, the commission is less for a private sale.
We usually always have a few beauties in our private stash. That is another reason why working with a very established connected Agent is key. We have options not available to the general public.
Reach out to our team if you’re interested in exploring this option. We are here to help you make the best decision!