Why Columbus Home Buyers Should Avoid “Whisper Listings” - Columbus Ohio Real Estate | Buyer's Resource Realty Services

Why Columbus Home Buyers Should Avoid “Whisper Listings”

Columbus home buyer whisper listingsRemember “pocket listings?” A pocket listing was a home for sale by a real estate brokerage, but not advertised to the public. It was a way to list and sell the same property without sharing it with outside agents. This enabled listing brokers to keep both sides of the transaction – and the entire sales commission – to themselves. It took the National Association of REALTORS® years to formally disallow the practice.

Except, the new rules didn’t go far enough. Pocket listings are now basically “whisper listings” and they became a larger share of the market over the past year, reaching an estimated 3% of all home sale transactions.

A “whisper listing” takes advantage of the timeframe NAR allows from the day the listing contract is signed, to the day the home is made available through the MLS. The allowed timeframe is one business day.

But as home inventory plunged, some agents used this business day to “whisper” the listing to their own buyers. If the listing contract was signed on a Friday, the next business day was Monday, giving agents the entire weekend to get their “whisper listing” under contract.

This is a disadvantage to sellers as much as buyers. Sellers benefit when the property is marketed to as many potential buyers as possible. In a “whisper listing,” the agent benefits by gaining a larger share of the commission.

In a hot market, buyers may see “whisper listings” as an opportunity, and glue themselves to selling agents to beat other buyers to the punch. This is a bad idea for a few reasons:

1. Whisper listings put incredible pressure on buyers to make an offer “before the listing goes public.”  Buyers may ignore property flaws and rush into poor decisions.

2. Whisper listings are not standing alongside comparable homes on the MLS. Whenever there is a lack of comparison, you’ll probably pay too much.

3. Pursuing whisper listings can mean missing out on other homes for sale.

4. Working with a listing agent means you will not have dedicated representation of your own, putting you at a serious disadvantage in purchase negotiations and contractual terms.

To sum it up: whisper listings may cause buyer’s remorse in the future!

Working with an Exclusive Buyer’s Broker gives you access to all listings on the Columbus Regional MLS, as well as homes For Sale by Owner (FSBO) and new construction homes sold by builders. You also get expert home buying representation with a fiduciary level of loyalty to you, the home buyer!

To see examples of how we help our Buyer-Clients, get our free e-book, “How to Buy a Home like a Pro!

As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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