A study of over 700,000 home sales in the Dallas-Fort Worth area revealed that homes sold off-market with zero days on market received a 1.7% price premium. This contradicts the belief that maximum exposure leads to maximum price. The research indicates that limiting exposure can enhance a seller's negotiating position. Off-market homes were less likely to experience price reductions and achieved a higher sale-to-list price ratio. The findings suggest that pocket listings can provide significant pricing advantages under certain conditions, although the study's scope is limited.
"Homes sold off-market and entered into the MLS with zero days on market commanded a 1.7% price premium compared to similar properties listed traditionally. This finding runs counter to the core logic behind the MLS itself: that maximum exposure drives maximum price."
"The study found that off-market homes were about 20% less likely to undergo a price reduction and achieved a 1.6% higher sale-to-list price ratio nearly identical to the overall premium. Sellers weren't necessarily getting more than their asking price; they were simply keeping more of it."
"The strategy appears to filter for high-intent buyers willing to pay for certainty and access. In the past, pocket listings were often associated with high-end properties, but the study found they are used across price tiers."
Read at www.housingwire.com
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