Eureka! The DBJ's Candace Carlisle Has Discovered Something: Dallas Folks are Selling Multi Million Dollar Homes Outside of the MLS
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I don’t know if you get the Dallas Business Journal or not, but as of late (like ever since I started this blog,) they have been tinkering with residential real estate. Tinkering I say because like most media outlets, the poor journalists have to cover about five different subject areas and mop the bathrooms after five, plus report, write and blog. So I understand how things run behind or not at all. But this truly gave me a chuckle.
You have to pay for a subscription to the DBJ, so I will quote Carlisle’s piece for you:
“Interestingly, I’ve discovered that not everyone lists multimillion-dollar properties on the market when they’re for sale.”
Eureka? Have we not been talking about these things called hip pockets since, oh, about March or May?
(Killing me: Don’t give me such shocking news, Candice. Excuse me, Candace.)
Then she quotes Rogers Healy,our Rogers Healy (who sold the M Mansion by Auction), who is practically my son, as saying that not listing an expensive home doesn’t hurt a mansion’s chances of selling, and in some case can help it.
“There’s some exclusivity of not putting a house on the market,” Healy told the Dallas Business Journal in an exclusive tour of a $12 million mansion that’s for sale, but not listed on the Multiple Listing Service. “When you look at who buys a multimillion dollar mansion, these people aren’t searching MLS.”
Selling homes in a hip pocket sale — a residential real estate industry term for an off-market deal — has gained traction in recent years as the housing market heated up, Healy told me.
The house they were touring was 9800 Rockbrook, which we showed you over a month ago. Rogers told Carlisle that the no-MLS route gives buyers the illusion of exclusivity, and has been working positively for the Rockbrook mansion on the market. He said he has shown it, a 10,600 square foot home on 1.73 acres, to three interested buyers. The story posted on CandysDirt.com on August 21, 2013.
This got me thinking: we know that having properties in the MLS increases exposure to more, way more buyers. In fact, Rogers himself says “With a number of out-of-state relocations bringing high-end buyers to the Dallas-Fort Worth market, Healy said he expects the luxury home market to continue to remain hot for some time.”
Question: how are those out of town buyers going to find any homes to buy? They will be on the internet looking for homes, and if the home is not in the MLS then it won’t make it to a third party portal. They could find it here on CandysDirt, of course, the agent is smart enough to call me, as Rogers did. Which may be why he had three serious showing.
Or smart enough to get Candace Carlisle to write about it.
I just don’t understand how sellers expect agents to sell homes, in MLS or not, if they cannot market them. You need to tell the world, rich and poor, about the house so the right buyer perks his ears up. You cannot be all anonymous and find buyers. I mean, can you?
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Realtors often buy ads on CandysDirt.com to market hip-pocket listings. We think it's a good sales strategy.
Realtors often buy ads on CandysDirt.com to market hip-pocket listings. We think it's a good sales strategy.
The Z sales go away, and high-dollar houses are marketed off of the MLS. The owners and agents have every right to do this, and may even be getting higher sales prices as a result. If Z sales were still available, then MLS users would at least have some information about these homes. It sure seems to me like the MLS and realtors are clearly losing out as a result of the no-z-sale-rule.
The Z sales go away, and high-dollar houses are marketed off of the MLS. The owners and agents have every right to do this, and may even be getting higher sales prices as a result. If Z sales were still available, then MLS users would at least have some information about these homes. It sure seems to me like the MLS and realtors are clearly losing out as a result of the no-z-sale-rule.
Neal, I have been wondering the same thing.
Neal, I have been wondering the same thing.
for those of us that are in the real estate biz, but just love the house porn – what is a Z sale?
for those of us that are in the real estate biz, but just love the house porn – what is a Z sale?
Oh Neal…where to begin with your comment. If I recall correctly, the Z sales went away on Oct. 2012. And then the market turned red hot in roughly January 2013. The hip pocket listing fad became more common due to the hot market, and has nothing to do with the disappearance of Z sales.
Candy's statement – "how are those out of town buyers going to find any homes to buy? They will be on the internet looking for homes, and if the home is not in the MLS then it won’t make it to a third party portal." – is the exact reason why a hip pocket listing is more detrimental to a seller than helpful. If your listing is under $2M, I think HP's hurt the seller due to the larger pool of buyers in that price range that will never be aware of your secret listing. However, if your client is looking in the $10M+ price range, then the rules change just a little because the pool of buyers/sellers become exponentially smaller.
Oh Neal…where to begin with your comment. If I recall correctly, the Z sales went away on Oct. 2012. And then the market turned red hot in roughly January 2013. The hip pocket listing fad became more common due to the hot market, and has nothing to do with the disappearance of Z sales.
Candy's statement – "how are those out of town buyers going to find any homes to buy? They will be on the internet looking for homes, and if the home is not in the MLS then it won’t make it to a third party portal." – is the exact reason why a hip pocket listing is more detrimental to a seller than helpful. If your listing is under $2M, I think HP's hurt the seller due to the larger pool of buyers in that price range that will never be aware of your secret listing. However, if your client is looking in the $10M+ price range, then the rules change just a little because the pool of buyers/sellers become exponentially smaller.
@Chris: Z Sale is (as Carol explained) an undisclosed price on the sale of your home. It is better explained here:https://candysdirt.com/2012/10/16/thinking-of-making-a-z-sale-yesterday-was-your-last-day-to-skirt-the-new-mls-sales-disclosure-rules/
@Chris: Z Sale is (as Carol explained) an undisclosed price on the sale of your home. It is better explained here:https://candysdirt.com/2012/10/16/thinking-of-making-a-z-sale-yesterday-was-your-last-day-to-skirt-the-new-mls-sales-disclosure-rules/
Another reason the MLS is on it's way to obsolescence. As soon as agents figure out they can market their listings to the whole world without paying outrageous fees to multiple associations of Realtors, who in many cases do NOT represent the rank and file agent (NAR I'm talking to you), and to MLS systems which haven't kept up with the latest technology, then the good-old-boys running the real estate empire will be left with not much more than a fancy suite of offices.
Another reason the MLS is on it's way to obsolescence. As soon as agents figure out they can market their listings to the whole world without paying outrageous fees to multiple associations of Realtors, who in many cases do NOT represent the rank and file agent (NAR I'm talking to you), and to MLS systems which haven't kept up with the latest technology, then the good-old-boys running the real estate empire will be left with not much more than a fancy suite of offices.
Candy, not putting a listing in the MLS is about the Agent not the seller or buyer. If you can't show exclusivity to a seller and buyer without that then you shouldn't list the house. it called providing Value not tricks.. Z prices in the MLS also hurt buyer and sellers because it makes it much harder for to determine the true market value. If all sold prices in the MLS were "Z", pricing a house would entail a lot more guessing than professionalism.
Candy, not putting a listing in the MLS is about the Agent not the seller or buyer. If you can't show exclusivity to a seller and buyer without that then you shouldn't list the house. it called providing Value not tricks.. Z prices in the MLS also hurt buyer and sellers because it makes it much harder for to determine the true market value. If all sold prices in the MLS were "Z", pricing a house would entail a lot more guessing than professionalism.
[…] which I’m sure made Ms. Wolfe quite happy: DCAD has the home appraised at $3,305,170. This is yet one more home sale NOT in MLS. He bought this one month after he settled into Normandy, and though he is making some alterations […]
[…] which I’m sure made Ms. Wolfe quite happy: DCAD has the home appraised at $3,305,170. This is yet one more home sale NOT in MLS. He bought this one month after he settled into Normandy, and though he is making some alterations […]
Hip-pocket listings, or as I like to call them – HIDE AND GO SEEK listings.
Hip-pocket listings, or as I like to call them – HIDE AND GO SEEK listings.