What is A Pocket Listing?

A pocket listing refers to a listing in which a real estate agent has
a listing agreement and the seller has not authorized the placement of
the listing on the Multiple Listing Service (MLS). Key here is the agent
has a fully executed listing agreement. A pocket listing is not when an
agent states Charlie Smith in the neighborhood will be selling their
house attempting to find buyers for the property.

How to Market a Pocket Listing

In this scenario the agent markets the property through informal
networks. Making all the agents in their office aware of the listing,
sending emails to other agents in the area, and with permission from the
seller, using social media to promote the home.

Is A Pocket Listing Legal

Yes a pocket listing is legal. When a Realtor recommends a pocket
listing to a client, it is very important according to the ethics code,
it is fully explained to the seller the downside of not going on the
MLS. In addition, when a agent takes a listing, if the property is not
going on the MLS a separate form must be signed by the Seller. We have
two days from the date of the listing agreement to submit to the Board
the SELM form.

Why A Seller Would Opt for Off Market Listing

Here are some situations when a pocket listing may be appropriate.

• Seller has more control over the showing of the house
• Wants to sell in as condition
• Doesn’t want the hassle of constant showings
• Privacy
• High profile person or celebrity
• Doesn’t want neighbors to know house is on the market
• Financial reasons

Downside of a Pocket Listing

• Exposure by keeping off MLS limits exposure to the buyer pool
• Financial – depending on the market (buyer or seller) may not get as much money

As long as the Seller is completely informed of both the pros and cons of a pocket listing, the final decision is theirs.

Watch What's A Pocket Listing on YouTube