A pocket listing is a real estate term that refers to a listing that is held by a broker or agent but not advertised on the multiple listing system (MLS) or other high-publicity avenues. For some homeowners, pocket listings are a way to gauge what kind of interest there is without officially putting their home on the market and starting the Days on Market (DOM) clock. For others who might be willing to move for the right price, it’s a way to passively obtain offers while saying put in their homes.
While pocket listings are an accepted and growing form of dealing with real estate, there are things that both buyers and sellers should know about this option.
What Home Buyers Should Know About Pocket Listings
A pocket listing could potentially allow a buyer to find the home of a lifetime because there probably won’t be a bidding war going on for a property that very few people know about. However, since you can’t readily see these listings, you will have to rely on your real estate agent a) to be proactive about finding pocket listings that aren’t his or her own, and b) to decide whether or not that certain property may fit your needs before you are even made aware of its existence. Moreover, because some pocket listing homeowners are not committed to selling, even generous offers can fail to materialize.
What Home Sellers Should Know About Pocket Listings
Few things guarantee a seller lower offers on their property more than an MLS listing that announces to the world that it has been on the market for an unusually long period of time. With a pocket listing, you may enjoy the anonymity of selling your home quietly and privately without racing against the clock. While this type of listing gives a seller greater control in some areas, it is also quite possible that the property will not be sold at the expected price or within a desired timeframe. If you’re hot to sell your home, this might not the best avenue for you.
As a potential buyer of real estate, you should always ask your agent if any listings are hidden away. And if you’re a seller, you should discuss all of the possible pros and cons of a pocket listing with your real estate agent before you make your final decision.