Most folks reach out to a real estate agent if they want to sell a house. The agent will help them sell the property and list it on websites like Zillow in the hopes of attracting a significant number of interested buyers. It's the most common way of listing a home you want to sell. 

Yet, sellers have another means of listing their property to buyers: pocket listing. Let’s find out in this blog post what pocket listing is and its pros and cons. 

What is Pocket Listing?

A pocket listing is a property sale offer marketed to prospective homebuyers through private channels rather than public advertisements or through multiple listing services (MLS). The "pocket" is a metaphor because the property is kept hidden except to an exclusive or limited clientele. 

Many homebuyers won’t find a pocket-listed property on MLS, and there’s no “for sale” sign planted on the front yard. In the United States, pocket listings only represent a single-digit percentage of total property listings.

The agent will only share the listing with a limited number of fellow agents or individuals who might be interested in buying the property. 

Reasons Why Some Sellers Prefer Pocket Listing

Although it might sound impractical, there are reasons why a home seller will choose pocket listing. This list will tell you why the pocket listing is good for some people when selling their properties. 

To Keep the Sale Private

A pocket listing is a good option for people who don’t want photos of their properties on the internet or want to keep their listing from the general public. Celebrities are an example of home sellers that prefer this type of listing because they want to avoid people who want to look at how rich they are without having a slight interest in buying the house. 

In most pocket-listed homes, people who want to see the property have to be pre-qualified, and they need to go through a screening. 

To Avoid Having on the MLS for a Long Time

Some people cast a negative image on a property that’s been on the multiple listing service for a long time without a buyer. That’s why the pocket listing is an option for home sellers who want to avoid this stigma.

Since only a select few people know your listing, you won’t need to deal with the judging eyes of the public, even if your house stays on the market for weeks or months. 

To Get an Idea of the Proper Pricing

Choosing a pocket listing enables you to test the market and know the price range that serious buyers are willing to pay for the property before going on a public listing. This way, you can price your property right and attract more interested buyers if it’s listed on the MLS. 

To Get an Easy Transaction

Some homebuyers aren’t willing to list their properties unless they can sell them for the price range they want. In a pocket listing, you can get a serious buyer who's willing to purchase your home based on your price range.

It allows for a no-hassle transaction without investing large money on marketing and property showings. 

To Save Money on Commission

In typical listings, most real estate agents get a 6% commission on the sale price. But, in a pocket listing, the agent doesn’t need to invest a significant amount of money in marketing. In this case, you can negotiate to lower the agent’s commission if you can successfully sell your home.  

Disadvantages of Pocket Listing

Although the benefits of a pocket listing are obvious, there are also some glaring downsides in this way of marketing your home. 

Property Won’t Be Fully Exposed to Many Buyers

More people will see your listing if it’s on the multiple listing service. In a pocket listing, however, your property will only get limited exposure. So, this way of selling your home isn’t advisable if you want to sell it fast. 

Limited Walk-in Traffic

Since pocket listings don’t have “for sale” signs, it’s hard to attract interested buyers who are walking the neighborhood. Unless you notify neighbors personally, they won’t find out if you’re selling your property. 

Lower Bids

Marketing to a limited number of people has the downside of getting lower bids. It’s a two-edged sword if you prefer pocket listings, but you can still find buyers who are willing to pay for the price you want if they’re really interested in your property. 

Final Thoughts

For home sellers considering pocket listing, it’s advisable to weigh its upsides and downsides first. This way of listing a property is preferable to home sellers who want privacy and want to test the market to get an idea about proper pricing.

But for those who don’t want limited exposure to their property, try listing on the MLS instead of pocket listing.