The real estate industry can be fast-paced and competitive. However, what if you could sell your listing before it's listed on the open market? That's where the Private Listing Network (PLN) comes in. The PLN is a platform designed for sellers and real estate agents who want a more controlled approach to marketing their properties. Real estate brokers may or may not agree with this approach, but let's take a look at it:
What is a Private Listing Network?
A Private Listing Network, or PLN, is a public or private Multiple Listing Service (MLS) database where real estate agents can share information about listings with fellow subscribers, thereby controlling access to the listing, testing the market for the listing, and usually selling it faster and at a higher price than if listed on the open market. These listings are sometimes listed as "Coming Soon" or another name a particular MLS has decided to give to pocket listings (those marketed with limited exposure outside the entire MLS database). Usually, MLS rules limit the duration of these listings so that when the time allowed by the rule for the listing expires, the listing must be either removed from the MLS or converted to a fully active listing. Unlike the fully active listing, these private listings usually aren't immediately accessible to the public.
Unlike fully active listings readily accessible to the public, private listings on a PLN remain exclusive to subscribed agents, creating urgency among potential buyers. This approach not only adds an element of intrigue to the property but also fosters a sense of competition, driving interest and potentially leading to a more favorable outcome for the seller. By leveraging the benefits of a PLN, real estate agents can tap into a unique avenue for marketing properties, maximizing their potential for success in the competitive real estate market.
Let's look at some of the benefits and drawbacks of a PLN.
Benefits of Using a PLN
Faster Sales: By targeting a network of pre-qualified buyers, sellers might find a match quicker than waiting for open houses and public showings. This can lead to a more efficient sales process, saving time and reducing the stress associated with traditional selling methods.
Increased Control: Sellers can test the waters for buyer interest before exposing their property to the broader market. This allows them to potentially negotiate a better deal without the pressure of multiple offers. This control empowers sellers to make informed decisions that align with their goals and preferences.
Privacy Concerns: Some sellers may prefer to keep the sale discreet, especially for high-value properties. A PLN allows for a more confidential marketing approach, ensuring that only serious and qualified buyers know the listing. This added layer of privacy can be crucial for sellers who value discretion and confidentiality.
Reduced Showings: Sellers can limit the number of people walking through their homes and ensure they are qualified, thereby minimizing disruption and wear and tear. By controlling the viewing process, sellers can focus on quality showings with potential buyers who are genuinely interested, leading to a more productive selling experience.
Drawbacks of using a PLN
Limited Buyer Pool: When a property is not publicly advertised, its exposure is limited to a select group of potential buyers connected to real estate agents within the PLN. This exclusivity can hinder reaching a broader audience and may result in a longer time on the market.
Potentially Lower Selling Price: Due to the property's restricted visibility, there is a risk of receiving fewer offers. The lack of competition among buyers can lead to a lower selling price compared to properties marketed through broader channels, where multiple offers could drive the price up.
Competition Among Agents: Within the PLN, multiple agents may have similar listings, creating a competitive environment where agents vie for the attention of the limited buyer pool. This competition can sometimes lead to conflicts of interest or challenges in coordinating sales efforts.
Time Constraints: Properties listed privately often face longer timeframes for selling because they rely on word-of-mouth or limited marketing strategies. This can result in prolonged holding costs for the seller and delays in achieving a successful sale compared to properties exposed to a broader market audience.
Points to Remember About Private Listing Networks
The PLN can be helpful for sellers seeking a more controlled and discreet approach to marketing their property, but only for a limited period.
It's crucial to weigh the potential benefits against the drawbacks. For sellers, consult your real estate agent to help decide if a PLN aligns with your specific needs and goals for selling your home.
Real estate agents, you'll need to align this option with your office and MLS policies and ensure the PLN option serves your client's best interest.
Leveraging a PLN offers sellers a range of benefits beyond traditional selling methods. From the potential for expedited sales to enhanced privacy, sellers can tailor their selling approach to suit their specific needs and preferences, ultimately leading to a more prosperous and satisfying selling experience.
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(C) 2024 Jeff Sorg
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