The vast majority of sales occur on the market, meaning a house is listed and goes onto the multiple listing service (MLS) where the general public can see it is for sale. The MLS then feeds to a multitude of sites on the internet, from the heaviest hitters like my broker www.ColdwellBanker.com all the way down to individual Realtors’ sites like my own at www.marinrealestatebyandyspatch.com.
When you start to think about all the brokerages, and all the Realtors around the world who have their own websites and MLS search capabilities, you realize being on the MLS brings the world literally to your doorstep. The more people who see your home, the more chance you’ll have to yield the highest price, it’s pretty basic. So why wouldn’t you want to put your house on the MLS, especially in today’s red hot market?
First things first, all segments of the market are not created equal. While we are seeing overbidding regularly on single family homes throughout Marin County, condos that may have already peaked and their prices aren’t experiencing the same level of demand. If I owned a condo in San Rafael or Novato right now and wanted to sell it, I would seriously entertain an off market offer at or above the perceived market value. You read that correctly, sometimes people will offer more than the market value for homes that are off market, just so they can get that home they really want.
When considering selling off market, price isn’t always the biggest consideration. Sometimes people prefer their privacy. They don’t want the world at their doorstep, or coming in their house. In the age of COVID if you are living in your house and want to sell it you may be very reluctant to have the general house purchasing public walking through your home. It can be scary, especially for the immune compromised, despite the safety measure Realtors take when showing homes and the COVID disclosures we all sign.
It’s not just the COVID, some people prefer their privacy. They like to do things quietly. When you sell a house part of the disclosure packet is a privacy disclosure that basically informs you when your house is on the MLS you have no privacy. The first house I ever sold was going to be off market to my buyer, but it didn’t work out and the seller agreed to next open up the exposure only to other Realtors in my brokerage. I talked up the potential sale in a company meeting and one of the other Realtors brought in the buyer without us having to go on the market. It was quiet and easy, just the way my seller wanted it.
The easy part is another aspect of selling off the market that appeals to people. When you aren’t on the MLS there is a different standard for showing. The house doesn’t have to be perfect. Buyers and their Realtors understand you aren’t ready for the market but you are willing to consider selling. That might mean not changing the shag carpet from the 1970’s, or ripping out the bathroom vanity that was once tasteful and but now it’s just tired.
In the interest of fairness Realtor associations want you to put your home on the market. They want everyone to have a shot at buying your property. As a homeowner you might not want everyone coming through your house, which is understandable. Brokers are fine with Realtors selling homes off the market because they are usually done ‘in house’, both buyers and sellers being represented by the same brokerage if not the same agent.
However, most of my off market sales over the years have involved Realtors from different brokerages. For instance, my last off market sale was a condo in Novato done with a Realtor from another Brokerage. I have a pretty extensive network, and I know a lot of Realtors with buyers who are hoping to find off market opportunities. I’m working with a couple of buyers right now who would love to find a home off the MLS.
There are lots of ways to sell a house. It’s your house, and if you don’t want it on the MLS you don’t need to have it there. Just remember, there is a possibility that if you put it on the MLS you might end up with more than you are expecting, and I’m not just referring to the final sales price.