In today’s competitive real estate market, sellers are often presented with multiple strategies for listing their homes. One approach that occasionally comes up is the concept of a pocket listing. But what is it, and is it the right move for you as a seller?
What is a Pocket Listing?
A pocket listing is a property that is for sale but not listed on the Multiple Listing Service (MLS). Instead, the Realtor privately markets the home through personal contacts or internal brokerage networks. This means the listing is “in their pocket,” not visible to the broader public or other agents unless directly informed.
The Case Against Pocket Listings
Opting for a pocket listing may not be the best route for most sellers. One of the main reasons is the reduced exposure. Without being on the MLS, the property isn’t seen by the majority of active buyers or their agents. This lack of competition can potentially reduce the final sales price.
Our company recommends listing on the MLS to ensure that your property reaches the widest possible audience. When priced correctly, homes on the open market typically sell within 30 days. This broader exposure increases the likelihood of receiving offers at or above market value and provides the seller with a clearer understanding of what the property is truly worth.
When a Pocket Listing Might Work
While not generally advisable, there are some scenarios where a pocket listing can be beneficial. In low inventory markets, off-market properties can create a sense of urgency or exclusivity among buyers. Some buyers, fearing they might lose out once the property hits the MLS, may be willing to make aggressive offers—even above market value.
This “pre-market frenzy” can sometimes lead to a quick sale at a strong price, particularly if the home is in high demand or located in a sought-after neighborhood.
Final Thoughts
Ultimately, we recommend that sellers list their homes on the MLS to gain maximum exposure and achieve the highest sale price. While pocket listings may have a place in unique situations, the safest and most effective strategy remains going to the open market. Doing so gives sellers peace of mind that they received full market value and did not leave money on the table.