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How Pocket Listings in Real Estate Work
Not every home sold gets a shiny new for sale sign out front. Some change hands quickly and quietly without any public advertising whatsoever. In the industry, these are known as “pocket listings.” Pocket listings are sometimes referred to as “coming soon” listings or “whisper” listings.
Pocket listings used to be the domain of the very famous or the very wealthy. People who liked to protect their privacy would typically work with an agent who could find a buyer among word-of-mouth networks of agents representing high-end buyers. Often this happened only in urban areas or in the luxury segment, but now in markets where inventory is tight and bidding wars are not uncommon, pocket listings are becoming somewhat more mainstream.
You might ask yourself: Why not advertise a home in a market where multiple offers are the norm? It can depend. In some cases, the seller may want a quick and painless sale, and would prefer not to go through the traditional process of cleaning, curb appeal sprucing, and open houses. When the seller’s agent happens to know the buyers directly, often a simple walk-through with prospective buyers is enough to secure one acceptable offer.
Sellers should understand that it’s possible for a pocket listing to generate a slightly lower price. While it’s not always the case, the trade-off for a quick, quiet sale may be worth it. If you’re considering a pocket listing, you’ll be asked to sign something which indicates your consent to avoid a wide-scale advertising effort. An agent has a responsibility to try and secure a seller the best possible price, and will want to make sure there’s a clear understanding.
Pros and Cons of a Pocket Listing
Below is a recap of the pros and cons of a pocket listing from an article by Moving.com.
- Pros for the seller is that they maintain their privacy and that a pocket listing can prevent the unfortunate experience of having a home’s value decrease because it sat on the market too long.
- Pros for the buyer is that the competition won’t be as fierce, the buying process will be more flexible, and they may be able to purchase the home below market value.
- Cons for the sellers is that there will be less buyers offering on the home and it may take longer for the home to sell.
- Cons for the buyers is that their will be less wiggle room on the price and their will be a lack of information and photos on the home.
On the whole, casting the widest possible net for a buyer is the best strategy for securing the highest closing price, but if you’re more comfortable with a quick and quiet approach, you might want to talk to an agent about the prospect of a pocket listing.
I know selling is a tough decision, with numerous factors to considers. Give me a call and I can answer your questions and put your mind at ease. Contact me at today (928) 710-9148.
Cleaning Up Credit Inaccuracies
Discovering an error on your credit history can be a rude surprise when you’re attempting to get pre-approved for a mortgage. Though most people don’t think about the details of their credit report until the need to secure a loan, it’s a good idea to check your report for inaccuracies periodically. It is easy to do, each of the nationwide credit reporting companies, Equifax, Experian, and TransUnion, are required to provide you with a free copy of your credit report, at your request, once every 12 months.
If you do find an error, the best way to attempt a correction is through a dispute letter. Dispute letters allow you to formally request a fix by the reporting agency. Though it may take a little time to get the errors removed, cleaning up these mistakes can have a direct (and favorable!) effect on your credit score, helping you secure lower interest rates and better terms.
Here’s what you’ll need to include for each mistake you find:
- Which account shows the mistake.
- Specifically what’s incorrect about the account where it appears in the report.
- What changes should be made and why those changes should be made.
- Any supporting evidence or documentation which will bolster your claim.
- Send letter by certified mail with a return receipt requested, so that you can document what the credit reporting company received.
For example: “On my report, the Chase Visa ending in XXXX shows my account is still active. I closed this account in 2012 and should be shown as closed, not active. Included is a letter from Chase bank, confirming the date of the account’s closure.”
It’s a good idea to keep copies of everything you send. Also, be sure to send the correction to all three major reporting agencies (Equifax, Experian, and TransUnion) as well as the original creditor (i.e. the credit card company, utility, etc.). You can find the current dispute mailing addresses on these company’s websites. Federal law mandates that agencies must help you within 30 days. Keep records of your disputes and when/how you communicated with the agencies.
An article by Experian offers insight on credit scores and disputes. Filing a dispute has no impact on your score, however, once your dispute is processed, that is where your credit score could change. Along with this, updating or changing information such as identification or address information will not affect your credit score.
Why Clean Your Credit
Having the cleanest credit report as possible will result in a higher credit score, that in turn increases your chances of getting pre-approved for a mortgage. A low credit score means that you will be charged a much higher interest rate when you apply for a home loan. In addition, if you have a low credit score, you will be required to contribute a much larger down payment of cash.
When looking to be pre-approved for a mortgage, you first need to get your credit report as clean as possible, pay off as many debts as you can, and make on-time payments. One of the hands-on things you can do today is set up payment reminders and pay your bills on-time. After these steps are taken, you can then sit back and watch your credit score rise!
According to the law, negative credit information stays on your credit report for seven years. On the other hand, positive information can remain on your credit report indefinitely. That is why getting your credit in shape is an important step to take when you’re preparing to buy a home.
I help buyers prepare every day! Contact me at today (928) 710-9148, I would love to help you buy your next home!
