Home Selling in 95843>Question Details

Pearl Ahlqui…, Real Estate Pro in Fair Oaks, CA

Pocket listing. What is it and who does it benefit??

Asked by Pearl Ahlquist, Fair Oaks, CA Tue May 28, 2013

A pocket listing is a listing that stays in the pocket of the agent and is never listed on the MLS.

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As an AGENT, have you approached your Broker with this?
1 vote Thank Flag Link Tue May 28, 2013
I would not say never. I have had plenty of pocket listings while the sellers are preparing the home to go on the MLS and share with agents I know.
1 vote Thank Flag Link Tue May 28, 2013
Pocket Listings are listing for some reason the seller has NOT given permission to list on the open market, for instance a seller may say I don't want to list unless I can get 200K and lets say with all the fees about 10% is the general consensus, and lets say the seller is 3,000.00 away from his/her price, so the agents may suggest " how about if I market to people I know and see if I can get someone to bite?"

In essence the agent has the home in his pocket, meaning only he/she is the only one that know about it.

Both parties can win the agent gets a little more commission maybe or just the normal amount.
The seller gets his/her price.

This is neither good nor bad depending on the intentions. If the intention is to save some money for the seller then it is not necessarily a bad thing.

I personally believe that all homes should have a chance to get the highest and best offer and that takes exposure.
0 votes Thank Flag Link Sat Jan 31, 2015
There are folks/sellers that for one reason or another don't want the World to know that they are selling their home but are willing to put it out to someone they know and trust to market for them. They can and do work depending on the property and price point.
0 votes Thank Flag Link Tue May 28, 2013
In January I had a "pocket listing" the owners didn't want anyone in their home nor did they want a sign in front, having me market it on the internet...eventually I convinced them to put it on the MLS and it sold, by another Broker. I don't like pocket listings, there's too much liability.
0 votes Thank Flag Link Tue May 28, 2013
Pocket Listings are not legal in my area. Preparation time to list but illegal to show before going on MLS.
0 votes Thank Flag Link Tue May 28, 2013
The focus is giving the best price and terms for the seller during your representation. If you can assure a seller that the offered price in the pocket listing is better than any other then it might make sense because it's easier to work with someone you know that is a qualified, experienced agent that will close the deal smoothly.

It is rare.

Especially today when putting it on the open market, the offered prices are way above comparable sold properties. The skies the limit. A pocket listing will restrict that free market pricing.

And the benefit is to the listing agent, not the seller, in most cases. My policy is not to represent both sides of a transaction so that my loyalty in the negotiation is clear. My policy is also not to complete a pocket listing unless specifically instructed by the seller, for example selling to someone they know.
0 votes Thank Flag Link Tue May 28, 2013
I recently wrote a blog article about this. Pocket listings can sometimes be helpful to take the temperature of the market before actually listing the home for all to see. For the sellers' benefit, however, I would advocate gaining exposure by putting listings directly on the MLS.

0 votes Thank Flag Link Tue May 28, 2013
Pocket Listings only benefit the agents.
0 votes Thank Flag Link Tue May 28, 2013
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