What is a “Pocket Listing”? Technically, it is a signed listing agreement between a seller and broker that is not marketed on the MLS. The seller signs an exclusion form to keep it off the Multiple Listing Service (MLS) for a period of time or indefinitely. There are a number of reasons that a seller would opt to limit the marketing of the property. They may have a need for heightened privacy, they could be working on a few repairs, or they might just not want to test the market without having a revolving door of agents and buyers through their home.
Regardless of their reason, it does limit a seller’s exposure. Most sellers want to reach the most buyers possible to increase their opportunity to bring in highest and best offers from qualified buyers. When a listing is held privately, the listing is limited to the exposure of that agents direct sphere of clients and associates. However, they may advertise on venues other than the MLS like craigslist in an attempt to attract the buyer themselves. Though the majority of listings that never hit the MLS are double-ended, most brokers that hold pocket listings will cooperate with other agents. This practice is more common in today’s market as the inventory is extremely low.
Kerry Ann Moore, The Keith Byrd Team, San Luis Obispo Realtor, 805-540-4040