Have you heard the term “pocket listings” — many have. You might have heard the term from a real estate agent or from family or friends if you are searching homes or planning to sell your home. The term itself might seem like a strange term. Some wonder what a pocket listing is and where the term came from.
What Is a Pocket Listing?
A pocket listing is a home that’s for sale, but that hasn’t been advertised or posted on the MLS. The sellers have signed the contract to sell the home. The agent might first reach out to their professional and personal network in case there is someone they know that might consider a quick, private purchase. Basically put, the real estate agent is reaching out to other agents who may know of someone who wants to buy a home. The listing and marketing portion of the home is avoided.
Originally, they were for upper-end properties with a pool of buyers. Celebrities or those who didn’t want any publicity regarding the purchase or sale of a property might have been interested in a pocket listing. However, that’s not the case anymore. Now, motivated buyers, in competitive markets with a low inventory, are considering pocket listings.
Will It Limit Your Potential Interest?
You might reason that a MLS listing would attract more buyers and you would receive competitive bids. This is where it gets tricky. Once listed on the MLS, a home is officially on the market. However, the longer it stays on the market, the greater chance you will need to lower the price and receive more and more low-ball offers.
Where a Pocket Listing Can be Useful
A pocket listing can be useful when wanting to explore the level of interest in a home. The real estate agent will reach out to their network to get an idea of if the listing has potential. Like a Coming Soon listing, it can drum up anticipation of a home – especially if the agent is reaching out to brokers in the area. A leery homeowner can get a sense of whether the home will list and sell for a bottom dollar they can live with.
Does the idea of a pocket listing interest you? Do you want to know of any homes in your area that are about to enter the real estate market? I’d be happy to discuss possible pocket listings with you.