Sound Off: What is a pocket listing, and what are the pros and cons?

Posted on by Listify Me

  • Alina Aeby Photo: Alina Aeby / ONLINE_CHECK

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Alina Aeby


Photo: Alina Aeby


Julia Bernardini


Photo: ONLINE_CHECK


Betsy Linder


Photo: Betsy Linder


A: A pocket listing seems to be one of the biggest mysteries in today’s market. A pocket listing is off-market or does not appear on the Multiple Listing Service.

Sellers may decide to not use the local MLS for a variety of reasons. Confidentiality and privacy are often reasons for pocket listings. Some sellers don’t want the public to know they are selling.

Sometimes sellers don’t even need to sell. They are fishing for a “make-me-move” deal. If someone offers to pay a certain price and takes the property as-is, then they will be happy to sell.

Others believe marketing and selling their home this way achieves the highest sales price because it is promoted to serious buyers only.

Listing the property in the MLS is still the best way of getting the word out to buyers and their agents. Every real estate professional wants to reach every possible buyer, and ultimately, the highest-paying buyer. Without comprehensive marketing it’s less likely that this “best buyer” will hear of a home being for sale.

But every sale is unique and deserves to be treated as such. There is simply no way to tell which way the seller will get the best price achievable, or even current fair market value. This is especially true in a rapidly appreciating market.

Julia Bernardini,

Bradley Real Estate,

(415) 225-0468, julia@bradleyrealestate.com

A: A pocket listing is not in the MLS and sometimes not marketed through the main real estate websites, such as Trulia and Zillow. Or a pocket listing could be pre-marketed in “inner circles.” In any case, the listing agent should have an agreement with the seller/principal, stating the price and commission paid to a collaborating broker.

Sellers might not agree to have the property in MLS because of an aversion to open houses, illness, not being able to prepare and stage the house for sale and privacy issues.

There are advantages to pocket listings. It provides privacy for sellers and they may not have to spend money with marketing preparations. For buyers, there is less competition and often a better price. Listing agents could end up representing the buyer and seller.

But there are also disadvantages. For sellers, the property does not have the maximum marketing and advertising exposure and might not sell for the best price and terms possible. Buyers might find it hard to find comparable sales, and the listing agent and seller could pick and choose who can see the property and who can buy, depending on personal connections.

Listing agents could have limited marketing and advertising venues and a smaller pool of buyers, and selling agents might not have access to a pocket listing and not be able to present it to the buyers.

Alina Aeby, Pacific Union and Christie’s International Real Estate,

(415) 744-4844, Alina.Aeby@pacunion.com.

A: A pocket listing is one where the seller does not place the property in the MLS, but offers it for sale through other channels. These could be by word of mouth to a small, particular group, through Top Agent Network (an invitation/ members-only network of agents who have achieved a particular level of annual sales/success), or within one’s brokerage. I have employed all of these successfully.

Some sellers are private and don’t want their home listed in the MLS. They prefer not to hold open houses or market to the general public. This is often a good strategy as buyers perceive this as more exclusive. People love getting the inside scoop, and rely on us as agents to make sure that they know. That typically means gaining access to a special home prior to others, and maybe having that extra edge in order to win the property.

In our inventory-constrained and highly competitive market, a pocket is often very appealing. It can be a win-win for both buyer and seller.

The only downside would be a more limited audience of potential buyers.

Betsy A. Linder, Pacific Union and Christie’s International Real Estate,

(415) 345-3116,


blinder@pacunion.com


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