Something new that has come about in this current and constrictive real estate market. The listings that have been sold before processing. Santa Clarita real estate listings that have been sold during the agent’s pre-advertising and pre listing marketing.
How does Sold Before Processing work?
This is how the mechanism works. You have a real estate agent that gets a listing. They talk the seller into being able to save some $$$ if they bring the buyer to the seller themselves. The agent does not get into the “dangers” of the dual agency scenario. This could also have been used as a pre-marketing ploy with regard to obtaining the listing in the first place. It could have gone down like this. The agent could have been going door to door. They could have door knocked the potential sellers home, they could have told the seller that they have a buyer for their home and to list it with them. The question I would have for that agent, knowing what I know now, is Who? Who is this person that wants to buy my home and when can I meet with them.
Or – and more common is where someone, the prospective real estate buyer, door knocks on the real estate seller’s door – where the sign is located – hits them up personally and develops that “relationship”. The seller then wants this proactive buyer to have their home. The proactive buyer contacts their agent. Their agent contacts the seller’s agent and the home is “sold before processing”. This is not the typical real estate scenario. This is something that happens rarely. In some cases the real estate sign is posted within the seller’s yard before the listing is entered into the Multiple Listing Service. I get a lot of inquiries from our real estate clients pertaining to seeing for sale signs at homes they are not seeing within the online real estate channels. I call and find out the happenings. In some cases the real estate listing is only entered into the Multiple Listing Service per mandate by the Board of Realtors, to keep account and make the record. This type of entry is known as a “sold before processing” listing.
Can I ask the door knocking agent to be straight with me?
Believe it or not – it is okay for you to ask this question. It’s okay to get to the bottom of a Sales solicitation at your front door. By someone that is knocking to inquire as to whether or not you may contemplate selling it. This is how I would conduct this order of business. “You have a buyer for my home – a real live flesh and blood person? Has this person been pre-qualified ” If the answer to the pre-qualification question is NO – then you have concluded your line of questioning and you should shut the door… If the give you the affirmative answer, “Yes, the prospective buyer has been pre qualified.” That is when you should ask when and under what circumstances can you meet with the buyer. There are a few ways in which to set this up. You can do it in the offices of the real estate agent. You can have the agent bring the buyer over to your home. You can call the agent you know and trust to meet with the agent with the buyer – etc…. However, don’t fall for this ploy. Most of the time it is not true.
Find out how much the buyer will offer
What if it was true? What next? You would want to find out how much the buyer was interested in buying your home for. It could be that the buyer, or agent want’s to undercut your homes true value. They may be flippers, wanting to list a home for less than fair market value employing some type of “if we cannot sell it we will buy it” scenario.
Whatever the case, if the buyer is really tried and true and if they are going to give you fair market value or more for your home. What’s stopping you from listing your home. If you had been contemplating selling your home, now may be the time. The real estate market may have adjusted enough to allow this sale to take place.
Entertaining other Buyers for your home
Do you really want to sell this home to the buyer that the agent told you about? What about other buyers? If the “real real estate buyer” the agent said wants to buy your home for FMV or at a price you want, what about others? There may be other buyers in the Santa Clarita real estate market that are interested in your home too. It may be that they want to give you more $$$ for your home. You will now know how much until you ask your local real estate agent to put your home on the market. The local Santa Clarita Realtor should list it with all of the web 2.0 technology available. This will ensure that your home is in front of more qualified buyers than anyone. After they get your home poised – the switch should be flipped.
Within a couple of weeks, you will know if there is enough interest to gather you the price you want for your home. You will also know if you are going to be able to get your home sold and in what time-frame.
Sold before processing is alive!
However, the “Sold before listing” is ever present in the Santa Clarita real estate market. How is that the sellers of the world are getting the best they can for their homes with this type of sales scenario in place? Some agents may argue that the home being sold – that was sold before listing – is a short sale. I say that is great – but doesn’t a short sale seller deserve to get the best buyer they can to? With the home being “Sold before processing” there is no chance the agent has the obtained the best buyer possible. Although a short sale seller is not allowed to make any money from selling their home as a short sale – they do have a vested interest in the sale. If the home does not sell as a short sale due to some type of “buyer failure” the home will foreclose. That is not what the Short Sale seller wanted.
Your Trusted real estate professional
Talk with your real estate professional about homes that have “Sold before Processing”. Ask them what they think? Ask yourself – why would any seller allow their home to be sold before it was been advertised to the thousands of real estate agents representing local Santa Clarita buyers of homes? I’d venture to say it was because the real estate seller did not ask themselves the right questions nor did they read this blog post.
Be Safe Search Well and always make sure you are represented best. I’m Connor MacIvor and am proud to give you an education with regard to real estate and would hope you always find us and read how to keep yourselves safe when it comes to the largest purchase of your life.
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