How did this house sell so fast?

It was a pocket listing ie. not on the MLS. Realtors will then put it on the MLS after it's under contract as a way to attract clients.
 
I've always wondered how beneficial a pocket listing was for the seller.  There's always a chance that someone like the OP could make an offer higher than expected.  Just seems the hassle factor is definitely worth a potential few thousand in additional gain.
 
Usually in a pocket listing the agent will represent both the seller and buyer - and the total commission is reduced to something like 3% or 3.5%. If you went to market, you may get a higher price, but your commission charge would be 5%.
 
best_potsticker_in_town said:
Usually in a pocket listing the agent will represent both the seller and buyer - and the total commission is reduced to something like 3% or 3.5%. If you went to market, you may get a higher price, but your commission charge would be 5%.
Click to expand...

True and the fact that the seller has to begin to show their home to the public and keep it in show worth condition (can be tough when you have kids).  There's no guarantees that you'll get a crazy high offer on the home and like potsticker mentioned, the seller will have to pay a higher commission once the home is listed on MLS if the buyer's agent is not the listing agent.  Ultimately it's up to the seller on what they want to do.
 
USCTrojanCPA said:
best_potsticker_in_town said:
Usually in a pocket listing the agent will represent both the seller and buyer - and the total commission is reduced to something like 3% or 3.5%. If you went to market, you may get a higher price, but your commission charge would be 5%.
Click to expand...

True and the fact that the seller has to begin to show their home to the public and keep it in show worth condition (can be tough when you have kids).  There's no guarantees that you'll get a crazy high offer on the home and like potsticker mentioned, the seller will have to pay a higher commission once the home is listed on MLS if the buyer's agent is not the listing agent.  Ultimately it's up to the seller on what they want to do.
Click to expand...

I guess the main issue is that the seller really has no idea.  They have to trust their agent, but their agent is incentivized to do a pocket listing to minimize the amount of work and gain the dual commission.  We are talking a good 5 figure amount of commission so it's really hard to believe that the agent is 100% working on the side of the seller. 

 
woodburyowner said:
USCTrojanCPA said:
best_potsticker_in_town said:
Usually in a pocket listing the agent will represent both the seller and buyer - and the total commission is reduced to something like 3% or 3.5%. If you went to market, you may get a higher price, but your commission charge would be 5%.
Click to expand...

True and the fact that the seller has to begin to show their home to the public and keep it in show worth condition (can be tough when you have kids).  There's no guarantees that you'll get a crazy high offer on the home and like potsticker mentioned, the seller will have to pay a higher commission once the home is listed on MLS if the buyer's agent is not the listing agent.  Ultimately it's up to the seller on what they want to do.
Click to expand...

I guess the main issue is that the seller really has no idea.  They have to trust their agent, but their agent is incentivized to do a pocket listing to minimize the amount of work and gain the dual commission.  We are talking a good 5 figure amount of commission so it's really hard to believe that the agent is 100% working on the side of the seller. 
Click to expand...

But there are comps. So as a seller, you know what you can get for your house (within a range). Plus you probably talked to a few other agents before picking one so you should have a pretty good idea what your house is worth on the open market.
 
bones said:
woodburyowner said:
USCTrojanCPA said:
best_potsticker_in_town said:
Usually in a pocket listing the agent will represent both the seller and buyer - and the total commission is reduced to something like 3% or 3.5%. If you went to market, you may get a higher price, but your commission charge would be 5%.
Click to expand...

True and the fact that the seller has to begin to show their home to the public and keep it in show worth condition (can be tough when you have kids).  There's no guarantees that you'll get a crazy high offer on the home and like potsticker mentioned, the seller will have to pay a higher commission once the home is listed on MLS if the buyer's agent is not the listing agent.  Ultimately it's up to the seller on what they want to do.
Click to expand...

I guess the main issue is that the seller really has no idea.  They have to trust their agent, but their agent is incentivized to do a pocket listing to minimize the amount of work and gain the dual commission.  We are talking a good 5 figure amount of commission so it's really hard to believe that the agent is 100% working on the side of the seller. 
Click to expand...

But there are comps. So as a seller, you know what you can get for your house (within a range). Plus you probably talked to a few other agents before picking one so you should have a pretty good idea what your house is worth on the open market.
Click to expand...

Yup, most sellers in Irvine are very familiar and knowledgeable with the closed comps with sites like Redfin, Zillow, etc...it isn't a black box like it use to be 10-20 years ago.  On my pocket listings, the buyer and seller negotiate the price via an offer and counters where I'm just acting as the middle man/referee. 
 
woodburyowner said:
USCTrojanCPA said:
best_potsticker_in_town said:
Usually in a pocket listing the agent will represent both the seller and buyer - and the total commission is reduced to something like 3% or 3.5%. If you went to market, you may get a higher price, but your commission charge would be 5%.
Click to expand...

True and the fact that the seller has to begin to show their home to the public and keep it in show worth condition (can be tough when you have kids).  There's no guarantees that you'll get a crazy high offer on the home and like potsticker mentioned, the seller will have to pay a higher commission once the home is listed on MLS if the buyer's agent is not the listing agent.  Ultimately it's up to the seller on what they want to do.
Click to expand...

I guess the main issue is that the seller really has no idea.  They have to trust their agent, but their agent is incentivized to do a pocket listing to minimize the amount of work and gain the dual commission.  We are talking a good 5 figure amount of commission so it's really hard to believe that the agent is 100% working on the side of the seller.
Click to expand...
Agree. In a different neighborhood I lived in, pocket listings were very common. Sellers agents generally all advised against it.
 
woodburyowner said:
USCTrojanCPA said:
best_potsticker_in_town said:
Usually in a pocket listing the agent will represent both the seller and buyer - and the total commission is reduced to something like 3% or 3.5%. If you went to market, you may get a higher price, but your commission charge would be 5%.
Click to expand...

True and the fact that the seller has to begin to show their home to the public and keep it in show worth condition (can be tough when you have kids).  There's no guarantees that you'll get a crazy high offer on the home and like potsticker mentioned, the seller will have to pay a higher commission once the home is listed on MLS if the buyer's agent is not the listing agent.  Ultimately it's up to the seller on what they want to do.
Click to expand...

I guess the main issue is that the seller really has no idea.  They have to trust their agent, but their agent is incentivized to do a pocket listing to minimize the amount of work and gain the dual commission.  We are talking a good 5 figure amount of commission so it's really hard to believe that the agent is 100% working on the side of the seller. 
Click to expand...

I've also done a few pocket listings with other agents. That agent's buyer lost out on a previous listing and because their offer was so strong and their buyer was qualified (plus the agent was good to work with) I checked with my seller if they were interested in showing the home to those buyers as a pocket listing.  There are some sellers that value getting things done with as little disruption in their lives as possible.  That being said, all of my pocket listings were definitely right where the market prices were for those homes.
 
Another scenario is a landlord selling an investment property. I've done this in the past where instead of waiting for the tenant to move out, I've allowed an agent to market it as a pocket listing. This reduces the foot traffic and impact on the tenant. I knew the price I wanted and what would be fair considering the agent's commission.

Luckily, a buyer was found and I didn't lose out on any lost rent as we closed escrow approx 10 days after the lease ended. All sides were happy.
 
irvinehomeowner said:
Wow... 3br zero lot line 1284sft home for ~$750k?!?

Not gonna see that in Tustin Legacy.
Click to expand...

Isn't paying less for something generally considered desirable?
 
woodburyowner said:
I've always wondered how beneficial a pocket listing was for the seller.  There's always a chance that someone like the OP could make an offer higher than expected.  Just seems the hassle factor is definitely worth a potential few thousand in additional gain.
Click to expand...

Sometimes it's an extremely bad deal for the seller.  A former coworker of mine bought a pocket listing in Dana Point steps from the beach from a little old lady that didn't seem to know what her place was worth.  It was implied by my former coworker that she got the house for a good six figures below what it was worth.  Apparently, nobody involved in the deal had any qualms about the ethics involved with this.
 
Liar Loan said:
woodburyowner said:
I've always wondered how beneficial a pocket listing was for the seller.  There's always a chance that someone like the OP could make an offer higher than expected.  Just seems the hassle factor is definitely worth a potential few thousand in additional gain.
Click to expand...

Sometimes it's an extremely bad deal for the seller.  A former coworker of mine bought a pocket listing in Dana Point steps from the beach from a little old lady that didn't seem to know what her place was worth.  It was implied by my former coworker that she got the house for a good six figures below what it was worth.  Apparently, nobody involved in the deal had any qualms about the ethics involved with this.
Click to expand...

I'm sure things like this happen all the time. 

For very hot price point properties (like the one OP is referring to), I still think a pocket listing is bad for the seller.  Hassle factor is nothing if you can get an additional 10-20-30k for the property.  People wait 20 minutes in the Costco gas line to save $3 bucks. 
 
woodburyowner said:
Liar Loan said:
woodburyowner said:
I've always wondered how beneficial a pocket listing was for the seller.  There's always a chance that someone like the OP could make an offer higher than expected.  Just seems the hassle factor is definitely worth a potential few thousand in additional gain.
Click to expand...

Sometimes it's an extremely bad deal for the seller.  A former coworker of mine bought a pocket listing in Dana Point steps from the beach from a little old lady that didn't seem to know what her place was worth.  It was implied by my former coworker that she got the house for a good six figures below what it was worth.  Apparently, nobody involved in the deal had any qualms about the ethics involved with this.
Click to expand...

I'm sure things like this happen all the time. 

For very hot price point properties (like the one OP is referring to), I still think a pocket listing is bad for the seller.  Hassle factor is nothing if you can get an additional 10-20-30k for the property.  People wait 20 minutes in the Costco gas line to save $3 bucks. 
Click to expand...

I think this is when you have to run the numbers and see what the delta would be between higher sales price versus lower commission.  In this case, a 10-15k higher price pretty much gets you to the same spot depending on which commission % you use.  Then beyond that, there's factors beyond numbers - hassle free, certainty of close, maybe theres a rent back involved, etc, etc. 
 
irvinehomeowner said:
Liar Loan said:
irvinehomeowner said:
Wow... 3br zero lot line 1284sft home for ~$750k?!?

Not gonna see that in Tustin Legacy.
Click to expand...

Isn't paying less for something generally considered desirable?
Click to expand...

Something comparable, yes.

Location location location!!!!
Click to expand...

Apple sells subpar technology for an inflated price due to marketing that makes their customers feel like they are buying something special.  Due to their fanatical devotion to overpaying for subpar technology, fans of Apple have been described as belonging to a cult.  They will wait in line for hours to acquire something whose glory days have faded to the past.  There's simply nothing left now but a reputation.

That makes the comparison between Irvine and the iPhone X pretty apt.
 
sometimes I feel like fighting against my human nature, but I must admit, after buying an iphone X & lugging it around places, I felt superior to the plebs that hadn't upgraded.  It's wrong to feel this way cause obviously owning tech doesn't make you a better person, but there it was stuck in my noggin.  I noticed it and filed it away as being human and apples brainwashing.
 
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