Sellers Could Pre-Test Prices with New Approach to Listing Their Home for Sale

A real estate brokerage has launched a new service called the “price whisperer” that allows home owners to get feedback on a price for their home before actually listing it for sale. Redfin’s new “price whisperer” tool allows potential sellers to gauge the pricing of their home from potential buyers while giving buyers a “sneak peek” at homes not yet on the market.

"The most important decision when selling a home is what price to charge," says Redfin CEO Glenn Kelman. "The traditional process often amounts to a high-stakes guessing game with tens of thousands of dollars at stake for the owner.”

Home owners provide the price they want for their home, while also getting advice from an agent. An agent then takes photos of the property and e-mails up to 250 active buyers with a question whether they would pay that price for this home. The address is not disclosed. Buyers are also asked if they’d like to tour the home.

Redfin says the service is not intended to generate pocket listings. If there is interest in the property, the agent will recommend that the home owner list the property on the Multiple Listing Service before selling.

“Selling directly to a buyer without listing the home on the MLS is called a ‘pocket listing,’ and generally does not benefit the seller,” according to a release from Redfin.

The service is being launched in Boston; Chicago; the Los Angeles area; New York; Portland, Ore.; San Diego; San Francisco Bay area; Seattle; and Washington, D.C.

Source: Redfin