When an opportunity presents itself to gain an edge over other buyers, many will take advantage.
Thats where a pocket listing can come into play.
Third-party sites then scrape the MLS to list all the homes for the public to view and share.
Credit:TRIA GIOVAN
When working with a real estate agent, you might have direct access to the MLS itself.
When someone opts for a pocket listing, theyre bypassing the MLS system in favor of a private sale.
says brokerDavid Sokolowskiof Coldwell Banker Warburg.
Why a Seller Uses a Pocket Listing
So why would a seller choose a pocket listing?
The answer is to avoid the hubbub of entering a saturated market and to maintain privacy.
The sale will only be recorded post-closing in government records, with none the wiser.
Pocket listings are often good options for those selling commercial properties or duplexes with tenants.
The first and most common one is for commercial, tenant-occupied properties, says Sokolowski.
Usually, these sellers do not want their tenants to be aware they might sell their properties.
A pocket listing has an aura of secrecy and opportunity that many buyers seek.
The Downside of Quiet Sales
Quiet pocket listing sales are often less competitive ones.
With fewer buyers seeing the listing, there will be less open competition among buyers.
Typically, when buyers compete, sellers win, so the price could be negatively affected with less competition.
The right agent can get top dollar for a pocket listing through the right connections.
Pros
The main perk of pocket listings is that they areprivate sales.
Because theyre low-profile sales, they often generate unique interest.
Pocket listings can sometimes lead to afaster transaction.
With a laser-focused approach, sellers potentially could find their target buyers more quickly, Walkup adds.
AgentDavid Harrisof Coldwell Banker Warburg says sellers often like theircontrol over the pricingin pocket listings.
Cons
The biggest drawback to a pocket listing is that your homemight not sell for top dollar.
Pocket listings typically result in the home getting less exposure, says Raney.
Another potential downside is that fewer potential buyers coming through could lead to a lower sale price.
The best way to maximize selling price is to expose the home to the widest audience possible.
Should You Consider a Pocket Listing?
Walkup suggests consulting with your real estate agent before deciding on a pocket listing.
Your agent can help you determine if the situation is right for you to go with a pocket listing.
Youre likely looking for a potential buyer as unique as the property itself.
The same can be said for times throughout the year when the market is slow for sellers.
