If you can’t uphold a contract, which is an agreement, then you’ve got nothing.” Nornan Braman

When people picture selling an apartment building, they picture a sign out front, a listing online, and strangers walking through the units. That’s one way to do it. It’s not the only way.

WHAT IS A POCKET LISTING? A pocket listing (sometimes called an off-market sale) is when a broker quietly markets your building to a limited circle of trusted buyers and brokers instead of advertising it to everyone.

I recently sold a building this way. I worked with a broker friend I’ve closed deals with for many years, including one of my own buildings. When you’ve been through that many escrows with someone, you know how they work, you know their buyers are real, and you know the deal will close.

WHY AGREE TO A POCKET LISTING? Owners choose a quiet sale for good reasons:

  • Privacy. Tenants, employees, and neighbors don’t hear about it until there’s a deal.
  • Control. You decide who sees your numbers.
  • Less disruption. No open houses, no stream of strangers.
  • Speed. If the right buyer already exists, there’s no reason to wait months for them to find you.

WHY NOT TO AGREE TO A POCKET LISTING. I’d be doing you a disservice if I only told you the upside. The tradeoff is exposure. Fewer buyers see the building, which means less competition, and sometimes that means leaving money on the table. A quiet sale works best when there’s a real, qualified buyer in the network, and I’ll tell you honestly when I think that’s not the case.

It doesn’t have to be all or nothing, either. Some buildings start quietly and go public later if the right buyer doesn’t show up. That’s a decision about timing, not a failure.

If you’re curious whether a quiet sale makes sense for your building, give me a call. No pressure.

PERSONAL TAKE. I have sold many properties with pocket listings. I have even had a broker friend with a client looking for a new building, make me an offer on a property that I owned- which ultimately closed and is still owned by the same individual. I believe in the numbers- the more that potential buyers know about all the great things you can say about your property, the more their interest in owning that property increases. There are always situations, including my own where a pocket listing can make sense.,It’s not a one-size fits-all question. It is something that should be carefully considered.

“Decision making is easy when your values are clear.” Roy Disney

 

How PRS Properties Can Help

Whether you’re thinking about selling, exchanging, or just curious what your building is worth, here’s what we can do for you:

  • Know your value. We’ll give you a current idea of what your building is worth, plus rent and sales comparables in your area, so you know what your units should be renting for.
  • Get ready for a sale. We’ll suggest easy, inexpensive changes that can raise your value, and look for issues an insurer or buyer might ask you to fix.
  • Explore your options. Exchange into a larger or smaller property, or move into something with less management, like a triple net or a DST.
  • Get trusted referrals. We can point you to lenders, contractors, and engineers so you can choose who you feel best with, and help pull together paperwork for a refinance.
  • Get the most at closing. If you sell with us, we’ll put together an aggressive, targeted, professional marketing campaign to bring you the most dollars.

Want to sell without listing?

We’re currently buying “as-is” properties: low rents, deferred maintenance, even a problem tenant in place. We can offer a 7-day escrow and all cash at closing. We’ve also put together many off-market transactions over the years, including for 1031 investors who need to identify a replacement property before their 45-day window runs out.

  1. Curious what your building would sell for today? Call or email for a free opinion of value.
  2. Want to see what similar buildings have sold for lately? Call or email and I’ll send you recent comps.

We’ve been doing this for nearly 50 years, and we’re always available to chat. If you’re thinking of selling, or just curious about your property’s value, give us a call. No pressure.