It is a widely known fact that most of the homes offered for sale are advertised either by real estate agents or homeowners in a variety of ways. The most popular way to promote a home for sale is online listings. However, real estate agents have another special type of advertising homes called ‘Pocket listing’. It differs greatly from customary methods such as multiple listing services (MLS), for example, and can be used not in every situation. At the same time, this method has a number of pros and cons to consider if you decide to use it to sell your home faster.
Definition of pocket listing
Known as hip pocket listing in the US or exclusive listing in Canada, this term is used to describe an agreement with a real estate agent and homeowners who sell their home according to which this home should not be advertised in MLS or can be added there only for a short period of time. One of the main reasons why home sellers opt for pocket listing is a desire to preserve privacy and prevent discrimination. In fact, this method offers sellers exclusive opportunities of real estate services.
Benefits of pocket listing
There are several reasons to opt for pocket listing if you sell your home. If you list your home off-market, you get the following benefits:
A higher level of anonymity
When a person orders pocket listing services from a real estate agent, he can be confident that only an agent, a seller and several more people are aware of the fact that the home is on sale. This information can be shared only with the potential buyers and nobody else who looks through the listings will ever see this home there.
The way to conduct market testing
When you add a home to the public listings, any changes in its price can lead to the situation that it may get stigmatized there. When there is a limited number of people who are aware of the initial price, it is possible to experiment with it for every customer and even get more profit if anyone agrees on the price offered.
When you add a home to the listings, it is necessary to hire a professional photographer to take photos as well as market your home and pay money for that. With pocket listing, you do not need to pay extra and even ask for a reduced commission which is quite frequent in this situation.
Reasons to avoid pocket listings
Despite the fact that this method has a number of benefits, it also features certain negative sides.
Only one agent works on your order
When a person opts for pocket listings, he should understand that only one agent will put effort to sell a home and it will take time to find a buyer. Since there are few people who know about the home, it is important to rely only on an agent. If the last one appears to be lazy, you may waste a lot of time in the market. At the same time, if this agent finds a buyer, he can also speed up the transaction which is also another advantage.
Minimum of traffic around this property
Pocket listing prevents agents from getting hundreds of calls from interested people who might have no money but want to more about a home for sale more. Moreover, this home will never become a center of the bidding war.
Pocket listing is a perfect variant for those who want to keep privacy when they sell a property. But it is important to remember that MSL has been created to attract more potential buyers and they can increase seller’s chances to give away estate faster, so pocket listing should be preferred only in special cases.