In this competitive and intense seller’s market, a strategy called pocket listing has become quite popular. Pocket listing, also called off-MLS listings, means the property is not made available to the public because it is not posted on the local multiple listing service (MLS). Typically when a property is listed on MLS, it’s automatically shared with other agents and listing sites like Redfin, Zillow, and Realtor.com. But with pocket listings, real estate agents will use their local connections to market the property to other agents or an exclusive network of buyers. But what are the advantages and disadvantages of this method?
Advantages of Pocket Listing
Fewer People Touring a Home
With a low inventory of homes available for purchase, sellers are getting tired of the plethora of strangers touring their home. As a seller, you have to coordinate your schedule with your agent’s schedule, and the buyer and their agent can tour the house. This can be time-consuming and frustrating very quickly, especially when the seller has to keep the home in showing condition.
The strategy also gives the seller more privacy as the seller controls who has access to your home. It can be beneficial if the seller is experiencing financial difficulties or going through a divorce and doesn’t want the community to know.
Testing the Market
If a seller wants to know how much their home will sell for, a pocket listing is a great way to get the answer. A pocket listing will allow the seller to test the market to see how much buyers are willing to pay. This is excellent knowledge to know before a seller does list their home to the public as it can help you avoid mispricing.
Disadvantages of Pocket Listing
Lower Sales Price
By choosing the pocket listing route, you miss out on more buyers, which means less competition. To get the best sales price in today’s market, you want maximum exposure so as many buyers see it as possible and make offers. But with fewer buyers means fewer offers and less negotiating. A study by Bright MLS found that homes listed on MLS sold about 17% higher than pocket listings. That can look like an extra $51,000 for a $300,000 home.
If you need help listing your home, publicly or in secret, contact us today! Together, we will create a plan to get you the best price for your home. Contact Mallach & Company today!