What is a pocket listing? According to Wikipedia a pocket listing is:
A pocket listing is a real estate industry term used in United States which denotes a property where a broker holds a signed listing agreement (or contract) with the seller, whether that be an “Exclusive Right to Sell” or “Exclusive Agency” agreement or contract, but where it is never advertised nor entered into a multiple listing system (MLS) or where advertising is limited for an agreed-upon period of time.
Do pocket listings help or hurt a seller? There are two thoughts on this.
Some feel, if the seller and broker agree to have a lower commission charged by eliminating the buyers agent. Does this not help the seller?
Others think, that a pocket listing rarely benefits the seller — at least not an informed seller.
- It fails to provide the full market to the seller’s disposal to receive the best possible price, meaning the largest bottom line.
- Pocket listings rarely create multiple contract offers.
- Pocket listings close out true competition for the property through open bidding.
My thought is this. Like it or not, we are a country built on competition. Competition creates opportunity and opportunity creates advantage. I have to wonder does a pocket listings help the seller or do they just help the broker.
What are your thoughts?