Real estate in Florida rich in off-market sales, pocket listings

It’s no secret there aren’t many homes out there on the market. The secret is the Realtor may have one in his pocket, so to speak.

Specifically, it’s called a pocket listing. And that’s similar to an off-market sale.

What do those terms mean? Palm Beach Post real estate writer Kimberly Miller explains it in this story. 

Here is a glimpse of what these terms mean. But if you really want to understand how they work, and more importantly, whether they may work for you, give her story a read.

It’s worth it.

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Low inventory a major problem in today’s housing market

The latest housing report spells out the problem in stark, numerical terms.

In May, sales of single-family homes plummeted by 19%. Not because there aren’t buyers, but because there aren’t enough homes up for sale.

Put it this way: The market had a 1.7 months supply of inventory of listed homes. That was 31% more than in May 2021. But that’s way lower than the benchmark for what is considered a “balanced” market for buyers and sellers alike —  a 5.5 months supply of inventory, according to Florida Realtors.

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For a week, Sutter’s team at Sutter and Nugent made cold calls to more than 300 owners of waterfront estates coaxing and tempting and cajoling and getting mostly no where. 

“Finally, this guy said, ‘Oh, it’s funny you called me, I was thinking of listing,’” Sutter said. “With a little luck and skill, the stars aligned and we closed for $10.7 million.”

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Solicitations to owners of medium-priced homes, especially those that aren’t homesteaded and where a landlord may be looking for motivation to ditch a rental, have always been common when housing inventory is low.

So, what are pocket listings and off-market sales?

With a dearth of housing inventory, Realtors are increasingly hunting down and persuading homeowners to sell their properties if it fits a clients’ desires. The so-called off-market sales, and related pocket listings, have become a norm in a pandemic-defined market where anything goes but normal. 

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Pocket listings are where a Realtor has a contract with a seller, but doesn’t advertise the home on the multiple listing service, or MLS. Sometimes pocket-listing sellers don’t want neighbors to know they’re considering a move, or just don’t want the tumult that an open house brings in today’s competitive market.  

Off market sales, where a Realtor must find the right house and then tempt a homeowner to sell to a specific buyer, also weren’t as common, especially in super high-end sales, until more recently. 

Antonio Fins is a politics and business editor at the Palm Beach Daily News, part of the USA TODAY Florida Network. You can reach him at afins@pbpost.com. Help support our journalism. Subscribe today.