What is a Pocket Listing?

When we take a listing, we are required to put it in the multiple listing service. A pocket listing is one that’s taken held by the agent but not advertised through the multiple listing service and taken straight to the seller’s direction. It’s mostly advertised through word-of-mouth between brokers. They usually have been most prevalent in the luxury and commercial real estate sectors, but now, with the limited number of homes for sale, they’re becoming more commonplace. This keeps a more private way of selling between brokers. They keep the listing in their “pocket” and then talk to other people who might be interested in buying the house.

Are there any gains from it? For buyers, in today’s competitive market, they might be able to buy a house without  getting into a bidding war. On the other hand, sellers can sell their house without tons of people traipsing through.  Some people prefer to keep things simple and confidential.

There are risks, too. The best way to get the highest dollar possible for the sellers is to expose their property to the highest number of people. Without this exposure, the biggest risk involved is under-pricing the property. For the buyer,  the biggest risk is to pay too much because the number that the seller came up with may be completely arbitrary.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to Real Estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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