Home Selling Tips: What Is Pocket Listing and How Can Sellers Benefit?

There are different ways to put a house on the market, and one option is called a "pocket listing." This type of listing is unique because your home will be kept secret from the general public, unlike regular listings. Instead, it will only be shared with a select group of potential buyers.

There are several benefits and disadvantages to choosing pocket listings. In this article, we'll go over what a pocket listing is, how it works, and some of the reasons it could be helpful, maybe not so helpful sellers.

What Is a Pocket Listing?

A pocket listing is when a home is for sale, but it's not listed on the regular, public websites where most houses are shown (which is often the MLS). Instead of going online for everyone to see, the house is only shared with specific people already interested in that type of home or with other real estate agents with serious buyers. This is only possible often through the real estate agent's network.

In most cases, pocket listings are used by people who want privacy or a quick sale without much public attention or scrutiny. Those selling luxury or unique properties also use it.

Advantages for Sellers

Pocket listings have numerous benefits for sellers, including:

• Privacy and Discretion: Sellers choose pocket listings to maintain a level of privacy. This is especially appealing to high-profile owners or those going through personal circumstances such as divorce or bereavement.
• Gauging the Market: Pocket listings can also allow sellers to gauge the interest on their property. This will help them adjust their asking price based on feedback gained from interested buyers.
• Faster Transactions: Since pocket listings involve connecting sellers directly with pre-qualified buyers, transactions may occur quickly.

Disadvantages for Sellers

While offering certain advantages, pocket listings also have significant drawbacks for sellers. This includes:

• Lower Sales Price: Properties sold as pocket listings usually have lower sales prices than those listed on the MLS by at least 17%.
• Reduced Market Exposure: By not listing on the MLS, sellers miss out on a pool of potential buyers. This limited interest can lead to longer selling times.