Pocket listings can be used by sellers and their real estate agents for a handful of reasons, but each pocket listing comes with a unique strategy in mind. Before we dive in to some of these strategies, which were highlighted in a recent article published by the RealtyTimes, let’s quickly define what exactly a pocket listing is.
Simply put, an agent may choose to list a home without listing in on the Multiple Listing Service (MLS). They figuratively keep the listing in their pocket, instead of broadcasting it out to the audience of millions using the MLS. A pocket listing is thus an unofficial, off-market listing.
Pocket listings are generally a strategy of high-end, expensive homeowners looking for a unique approach to their house sale. Because of changing market conditions, however, pocket listings have become more mainstream.
Some sellers aren’t happy with current market prices, so they’re happy to wait for the right buyer to come along who will pay the right price, and will settle for the lack of marketing through traditional real estate channels. In a similar fashion, sellers can use a pocket listing to test the market quietly before taking the plunge.
Meanwhile, other sellers may select a pocket listing because of the ability to generate a quick cash sale, even if the pre-determined price is below market value.
Another issue with listing high-end properties in the MLS is the time on the market shadow that may follow a property if it sits for a period of time. This can give buyers the feeling that there’s something wrong with the home, or they may feel obligated to submit offers much lower than market value based of the length of the time the home has sat on the market.
Finally, pocket listings can be a great alternative for sellers who require privacy. Keeping their home out of traditional marketing channels can work in their favor when trying to avoid the media.