So what's the deal with "pocket listings"?

A "pocket listing" is a property that an agent has listed for sale but the seller has requested in writing that the property not be advertised on the open market or entered into the MLS (the main tool agents use to search for properties for their buyer clients).   A pocket listing can also be a property that an agent knows is coming up for sale but is not yet officially listed for sale. 

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For sale or not for sale, that is the question

So you might ask; why would a seller want to hide their property from the open market?  There are a couple of reasons a seller might employ this technique.  #1 they are not ready for the world to know they are moving/selling, or #2 they don't want the whole neighborhood traipsing through their living room.  

The Kremmling area residential inventory is at an all time low and a seller should think long and hard about not taking their home to the "open market".  The basic laws of economics state that when demand exceeds supply the value of that commodity goes up.   By forgoing the MLS and the open market, "pocket listing sellers" miss the vast majority of possible buyers and more importantly, the possibility of multiple offers.  Their agent might already have a buyer for that particular home, but is it the highest and best offer?  You won't know unless you let the market tell you. 

I recently listed a home that had 10 showings in 2 days and 5 excellent offers (several over full price) by the end of the fourth day.  The seller couldn't have been happier.  At the end of the day she accepted a great offer and now knows she has four additional buyers that would gladly step up to the plate should this deal not move forward. 

If you have been thinking about selling your home take the time to educate yourself about the listing process and all the available tools your agent has at their disposal to help you sell your home.  Unless you have very specific reasons not to, insist that your agent list your home in the MLS prior to accepting ANY offer so that ALL eligible and qualified buyers have the opportunity to make you an offer.  If not, you risk possibly leaving thousands of dollars on the table.  

Guess how long it takes to sell a house??

According to the National Association of Realtors....

Three weeks.  21 days.

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Just five years ago the median number of days on market was 77 days, or 11 weeks.  We are experiencing a low supply of housing in Kremmling which has pushed home prices up and created situations of multiple offers. 

"The inventory shortage and the growing economy and job creation has increased the interest in homebuying," said Lawrence Yun, chief economist for NAR. "There is just not enough inventory; people need to fight over the few homes available on the market. Historically, roughly 1.2 million new homes hit the market every year, he said, and so far this year, only 800,000 have been built. "It's been below that in prior years, and in the past decade greatly lower than that. Today's shortage is largely explained by a decade of underproduction."

And so you ask; what should I do if I want to buy a house?

1. If you are a buyer it is absolutely critical that you are at least pre-qualified for a loan and if you can get pre-approved that is even better.  Sellers will only consider serious buyers and if you haven't even taken the time to visit with a lender they will move on to another buyer in a heartbeat. 

2.  Be prepared to act FAST!  Gone are the days where you can go home and "talk it over".  I hate this for my buyers because am I a very low pressure Realtor, but it is a fact.  I would rather you know the market conditions we are dealing with than lose a house that is going to work for you.

3.  You might pay over full price.... I know, I don't like it either, but it is a sellers market and they call the shots.  Real estate is a long term investment and chances are you will build equity over time and not be upside-down when you go to sell. 

4.  Make sure you have a trustworthy and experienced Realtor in your court.  Call me today.  I know the Kremmling market and this area.  It would be my pleasure and honor to help you find your next (or first) home in the Kremmling area.