Listing a Home Outside the MLS Takes Careful Consideration
Last week we explained why Red Oak Realty feels a blanket policy of pre-marketing homes outside the multiple listing service (MLS) in what’s commonly known as a “coming soon” strategy harms sellers because it can restrict listing exposure, harm first impressions and disregards clients’ specific needs.
Some brokerages now mandate that their agents keep their listings off the MLS for a period of time, usually two weeks, while they list them exclusively to a smaller audience on their website.
As a client-first brokerage, we advise our sellers to develop a custom marketing plan with their agent that best meets their home and selling needs.
Because the off-MLS listing strategy is so nuanced, we wanted to provide some specific examples of how our agents handle them, showing their pros and cons, and also why sellers should use the strategy on a case-by-case basis.
Nuance of Off-Market Listings
Red Oak Realty agent Patrick Leaper dealt with an off-MLS deal for a recent listing of his in the Mira Vista neighborhood of northern El Cerrito. He won a two-bedroom, one-bath traditional home listing.
The home had partial bay views, a built-out downstairs basement and a detached garage. The seller and he decided to list the home for $899,000, hoping that buyers would bid the final sale price over $1 million. (East Bay real estate, in particular, sees higher list-to-sale-price ratios than other areas; it has become part of the real estate culture here.)
Patrick Leaper
A fellow agent got wind of the listing-to-be and reached out to Patrick that her client would like to see the home before it was listed as her client would be out of town. Patrick and his seller decided that that was okay.
The prospective buyer made a clean offer at just under $1 million before the home entered the broader market through the MLS. At that point, Patrick and the client discussed the opportunity to sell before marketing in the MLS. They discussed the pros and cons, Patrick says.
The pros included moving forward with a straightforward, sooner sale at close to their desired price. This interested buyer might not be around in a month when the home hits MLS (the time it takes for a home to enter MLS from when an agent takes a listing varies by each home; some homes need more prep work than others to show in their best light).
On the other hand, the open market could lead to a higher price, which is always a possibility. The seller chose to take the early offer and closed on the house. The sellers were happy, which is all Patrick cares about in the end.
He says off-MLS deals are not inherently good or bad; the terms and the sellers’ particular situation dictate whether it can work out well for them or not.
Scott Ward
Red Oak Realty agent Scott Ward had an experience with a recent listing that showcases how selling off the MLS can lead to much lower prices.
The owners of a North Oakland craftsman, three-bedroom home received an offer for approximately $500,000 before they listed their home in the MLS.
They reached out to Scott for his opinion. Scott felt immediately that the offer came in way low and suggested the sellers try the MLS. They listed the home and it ended up selling for $800,000.
The East Bay real estate market has many twist and turns, and off-MLS deals are perhaps the trickiest and most nuanced we see. Red Oak Realty prides itself on putting its clients’ needs first and cultivating in-depth local knowledge. Reach out for an expert real estate opinion.
