Looking for hungriest, most strategic buyer's broker in Seattle!
Investor · Seattle, WA · Member since 2015 · 10 posts · 4 votes
I am an investor and Bigger Pockets member in Seattle, but this post is actually about looking for a primary residence for my family. Given how hot the Seattle market is, I'm particularly interested in off-market/pocket listings, and I realize they take hard work to find. I've engaged a couple different brokers in the past who promised a lot but didn't put in the effort, and I'm back to square one. Please let me know if you can do better, or if you have leads, and references are always welcome. Thanks!
@Elliot Smith Every month, the Northwest MLS releases a notice of disciplinary action taken against agents and their firms. The vast majority of the time it relates to something called "the marketing of the property prior to listing on the MLS," or something to that effect. After seeing broker after broker getting fined thousands of dollars, losing their license or getting suspended, I asked a couple of colleagues and then my managing broker what that sort of activity this entails. Their answer, pocket listings.
To be fair, pocket listings typically occur when a property has been listed on the MLS for some time and either expires or gets canceled, but the seller tells the real estate agent to keep it as a "pocket listing." This way, the real estate broker can quietly market the property while not adding to the days on market. This is an inherently deceptive marketing practice and does not allow the property the full exposure to the market. It is also potentially discriminatory in nature as only the real estate broker and the seller would have knowledge that the property's for sale and could essentially discriminate for or against certain people/buyers.
I am not an attorney or anything but from my understanding when a licensed real estate broker is involved in the sale of a property, they cannot promote that property until it has been listed on the MLS. Therefore, when they are involved in a listing transaction but market the property discreetly, or as a "pocket listing" they are in violation of a couple of MLS rules.
Now, it is an entirely different matter for a private sale to be conducted with the use of a real estate broker outside of the MLS. It is my understanding that there is absolutely nothing wrong with a real estate broker assisting a motivated seller who wishes to sell the property through means other than the MLS. Essentially, they are looking to achieve an unlisted sale. The biggest difference in this aspect though is that it is the seller who finds the buyer, not the real estate broker. The real estate broker simply acts as a medium in which the transaction can be conducted, and is usually paid a flat fee.
@Elliot Smith If you simply don't want a bunch of strangers walking through your house at random times of the day (personally, I don't either) but would sell for $X if offered, you may actually want to go ahead and list the property for sale, but specify that internal showings will be allowed only after reaching mutual acceptance. This tactic is very often used with multifamily property and rentals as a means to avoid disrupting the tenants. I was at 2 inspections today in which that was exactly the case; we had to get the property under contract before getting a look inside. This way, your property could get marketed to the planet and if somebody is truly willing to pay your price, will be able to make an offer and only then walk through the house.
The downside is that the property might be on the market longer than usual. Fortunately though, in Washington state, especially in King and Snohomish County, it is such a strong seller's market that it may not really matter that much. So, instead of getting 5 offers in the first 2 weeks... Maybe you only get 2 offers in 5 weeks :)
Hey @Adam Pearson. I'm not an agent, but throwing in my 2cents, it would help anyone trying to answer your request if you would provide a bit more information. Seattle is a big region with a lot of nuances to the neighborhoods and if you are looking for a primary, that just makes things even trickier. Some basic stuff might be family size, home priorities (are you moving in a few years and going to hold it as a rental? need something with a short commute? proximity to a certain school?).
Good luck with your search, it's tough out there in the Puget Sound.
@Caroline Weil Thank you, I just sent an email to your Windermere account!
@Adam Pearson. Best of luck with your search. just one thing about pocket listings...if any broker claims to have them, he or she is breaking the law. In WA state, pockets listings are a big no-no. It's not that off-market listings don't "exist," but any broker claiming to have them sounds inexperienced, ill informed or downright irresponsible.
Don't get discouraged when real estate broker after real estate broker doesn't follow through, call you back, etc. At least 80% of the real estate brokers out there are either part-time, won't last the next 12 months, or aren't very motivated. You'll have to go through at least 10 before you find a couple that are worth consideration.
Advertising your search on biggerpockets is an excellent idea and I'm sure you'll get some good feedback.
@Lane Kawaoka Not sure quite frankly. And just because it's technically illegal doesn't mean that it's rather pervasive. I know of a few brokers who seem to partake in this sort of behavior but it's a risky endeavor.
I will ask a commercial broker at my office on Monday
@Patrick Britton To clarify, I'm looking for off-market properties, which would entail contacting property owners directly to find out if they are willing to sell. I've often seen that referred to as "pocket listings" when that term may actually mean something else.
@Adam Pearson gotcha. yeah, the terminology is definitely used in the same context, but has two meanings. i understand what you mean though ;) the "issue" comes up when a licensed broker claims to have them.
@Patrick Britton What about it makes it illegal? Say I have a house that I am on the fence about selling and I tell my agent that I would consider selling if you had someone willing to pay X but I am not motivated enough to list on the MLS. Or I just don't want a bunch of people walking through my house. I am just curious. Thanks!
@Elliot Smith Every month, the Northwest MLS releases a notice of disciplinary action taken against agents and their firms. The vast majority of the time it relates to something called "the marketing of the property prior to listing on the MLS," or something to that effect. After seeing broker after broker getting fined thousands of dollars, losing their license or getting suspended, I asked a couple of colleagues and then my managing broker what that sort of activity this entails. Their answer, pocket listings.
To be fair, pocket listings typically occur when a property has been listed on the MLS for some time and either expires or gets canceled, but the seller tells the real estate agent to keep it as a "pocket listing." This way, the real estate broker can quietly market the property while not adding to the days on market. This is an inherently deceptive marketing practice and does not allow the property the full exposure to the market. It is also potentially discriminatory in nature as only the real estate broker and the seller would have knowledge that the property's for sale and could essentially discriminate for or against certain people/buyers.
I am not an attorney or anything but from my understanding when a licensed real estate broker is involved in the sale of a property, they cannot promote that property until it has been listed on the MLS. Therefore, when they are involved in a listing transaction but market the property discreetly, or as a "pocket listing" they are in violation of a couple of MLS rules.
Now, it is an entirely different matter for a private sale to be conducted with the use of a real estate broker outside of the MLS. It is my understanding that there is absolutely nothing wrong with a real estate broker assisting a motivated seller who wishes to sell the property through means other than the MLS. Essentially, they are looking to achieve an unlisted sale. The biggest difference in this aspect though is that it is the seller who finds the buyer, not the real estate broker. The real estate broker simply acts as a medium in which the transaction can be conducted, and is usually paid a flat fee.
@Elliot Smith If you simply don't want a bunch of strangers walking through your house at random times of the day (personally, I don't either) but would sell for $X if offered, you may actually want to go ahead and list the property for sale, but specify that internal showings will be allowed only after reaching mutual acceptance. This tactic is very often used with multifamily property and rentals as a means to avoid disrupting the tenants. I was at 2 inspections today in which that was exactly the case; we had to get the property under contract before getting a look inside. This way, your property could get marketed to the planet and if somebody is truly willing to pay your price, will be able to make an offer and only then walk through the house.
The downside is that the property might be on the market longer than usual. Fortunately though, in Washington state, especially in King and Snohomish County, it is such a strong seller's market that it may not really matter that much. So, instead of getting 5 offers in the first 2 weeks... Maybe you only get 2 offers in 5 weeks :)
Thanks for clarifying. That defiantly makes sense as why that can be a bad thing and I hadn't thought about it that way. Our market is the same down here in Vancouver WA as well but if you know where to look you can get deals. We closed on 2 this week, started a short sale, and I have two offers out that I expect to get accepted as they are direct to home owner deals.
I would start with Patrick Britton.
Hard to find non-development deals through agents in my opinion but they do exist.
Pocket listings violate the MLS rules and not Washington state law. But interestingly, the National Association of Realtor (NAR) by-laws specifically allow brokerages to do pocket listings. So the Local MLS is a little at odds with the NAR bylaws. But all the big brokerages locally can't do pocket listings.