What Is a Pocket Listing?

A pocket listing is a real estate sale offer that is handled by a single broker or salesperson and not made available to 澳洲幸运5开奖号码历史查询:multiple listing service (MLS) members or even colleagues in the same off💮ice. A pocket listing is an off-market listing or exclusive listing, meaning it is not sold to the general public.

Pocket listings can help sellers who insist on privacy and brokers with extensive connections in the community. Even if no sale is made, a pocket listing helps the seller gauge the home's market value before eventually listing it on an MLS. However, the exclusivity of pocket listings can lead to fewer or lower offers, preventing a bidding war and maximizing the selling price.

How a Pocket Listing Works

When a 澳洲幸运5开奖号码历史查询:real estate agent is hired to list and sell a property, a contract is signed between the seller and the agent and 澳洲幸运5开奖号码历史查询:the agent's company. Usually, the property is listed in the multiple listing service (MLS), the database of properties for sale that all brokers use. This is done so that 澳洲幸运5开奖号码历史查询:real estate agents and brokers can cooperate with other agents and brokers and share a portion of the 澳洲幸运5开奖号码历史查询:total commission paid by the seller.

However, with a pocket listing, a property will not be listed in the MLS, and there is no agre🌃emen💟t to work with other real estate professionals.

The pocket listing is used mainly by owners of very high-end or unusual propertiesꦛ who want only serious and qualified buyers to show up. The owners may be celebrities or politicians. The list ofꦕ potential buyers is small, and the agent is well-connected.

At a less lofty leve🔯l, the owners may choose a pocket listing to test the waters and see what price the property might bring. If no sale is made during the contract term, they can always open it up to an MLS listing.

It's important to note that some types of pocket listings are considered ethically dubious because a single agent represents both the buyer and the seller. For this reason, some types of pocket listings are banned by the 澳洲幸运5开꧟奖号码历史查询:National Association of Realtors (NAR) or restricted by state laws. The sale may be handled by investment brokers rather than 澳洲幸运5开奖号码历史查询:real estate brokers.

Advant💎ages and Disadvantages of a Pocket Listing

Pocket listings have pros and cons for the agent and s😼eller.

Advantages of a Pocket Listing

A pocket listing may offer a considerable advantage to the rไeal estate agent charged with selling the property.

• Agent has exclusive listing: Since the agent has the listing exclusively, they can earn the full commission. The listing agent is under no obligation to share the commission with another broker or agent unless they choose to bring in help in finding a buyer.
• Test the market: A pocket listing can help determine a property's price by testing the market at a higher price. If the offers fall short, the seller can list the home on the MLS.
• Less time on the market via MLS: If the seller changes from a pocket listing to one listed on the MLS, the property will appear as a new listing. This prevents the property from being viewed as being on the market for too long or an older listing at an unreasonably high price.
• Privacy for the buyer and seller: The private listing can help the seller avoid unnecessary foot traffic from unlikely buyers and concentrate on serious prospective buyers. On the other hand, the buyer has less competition.

Disadvantages of a Pocket Listing

Although many advantages exist, below are a few of the disadvantages 🌺of pocket listings.

• Lower participation in sales efforts: Fewer people are involved in selling a property when the realtor acts as a solo agent, emphasizing more on the realtor's effectiveness unless they believe interested parties exist or have a buyer lined up already.
• Less marketing or word of mouth: By keeping the sale hush-hush with no listing or lawn sign, the word is unlikely to spread beyond the realtor's contact list, resulting in fewer prospective buyers seeing the property.
• Fewer offers or low offers: A pocket listing might lead to the seller meeting only a few interested buyers, leading to fewer or lower offers. However, this might be advantageous to the buyer.
• No bidding war: Pocket listings reduce the chances of multiple offers and a 澳洲幸运5开奖号码历史查询:bidding war over the property, leading to the opportunity cost of selling the property at a below-market price.
  

Example of a Pocket Listing

Sadie is interested in selling her estate, which is worth a substantial amount of money. Sadie already has a family member, her cousin Nick, who has expressed serious interest in purchasing t🎐he home.

Because Sadie already has a buyer lined up, she contacts the real estate age🌟nt she has used in the past with an offer of a pocket listing. As a result, the property does not get put on the MLS, making it an exclusive listing.

Why don't Sadie and Nick get together and make the deal? Realtors do more than show property. They also prepare the legally required documents that must accompany a property transaction. Also, even family members need professional assistance in negotiating the details of a property sale.

The Bottom Line

Typically, a single broker or agent handl𒁏๊es a pocket listing, offering privacy to the buyer and seller. A pocket listing creates exclusivity, preventing too many from walking through to view the home and concentrating on serious buyers.

However, since the buyer has fewer competitors, the seller might receive fewer offers or lower bids. Even if no sale is made via a pocket listing, the seller has gauged the market demand at a particular selling𝄹 price. The seller can then list on an MLS, where it appears as a newly marketed home versus an older, unsold listi🎉ng.