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The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Andrei Medvedev/Shutterstock March 21, 2022 Ben Luthi is a personal finance and travel writer who loves helping people learn how to live life more fully. His work has appeared in several publications, including U.S. News & World Report, USA Today, Yahoo! Finance and more. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. When you want to , you usually aim to get as many prospective buyers interested in the property as possible. However, some sellers opt for an alternative route that doesn’t involve sharing photos online and hosting open houses. Instead, they choose an approach known as a pocket listing, in which the home is not marketed in the typical ways. There can be some benefits to pocket listings, but there are drawbacks as well — first and foremost, they limit exposure to your home. Here’s everything you need to know. What are pocket listings in real estate
A pocket listing might also be referred to as an exclusive or off-market listing. In this setup, the property isn’t included in the Multiple Listing Service (MLS), as most sale listings are. Instead, the seller quietly keeps the property “in their pocket” — hence the name. When you hire a real estate agent to help you sell your home, the agent typically places your listing on the MLS for other agents and brokers to see. Listings on the MLS are also aggregated by real estate portals like Zillow, so they’re accessible to the general public, too. But with a pocket listing, the sale status is never made public. Pocket listings are legal, but they fall into a bit of a gray area. The National Association of Realtors is not a fan of them, and has actually adopted a specific . (Of course, .) Despite those efforts, plenty of listings are sitting in sellers’ pockets, so to speak. And the numbers appear to have risen during the pandemic. In fact, according to , between 20 and 25 percent of 2021 listings were sold without ever appearing on the MLS. When to consider a pocket listing
In today’s seller’s market, pocket listings come with a big drawback: They severely limit the seller’s ability to leverage competition among buyers. According to , in 2021, 24 percent of sellers received four or more offers on their home. Still, there are a few situations where it might make sense for a seller to keep their listing quiet. You already have a buyer
Let’s say you’re thinking of selling your home and a family member or friend has expressed interest in buying it. In this scenario, you have a buyer lined up already, and you just need an agent to handle the transaction. So, it might not make sense to list your home on the MLS and go through the hassle of fielding inquiries from other buyers. A pocket listing here actually simplifies the process. Keep in mind that with a pocket listing, if your pre-arranged deal falls through, you’re back at square one. Whereas with a listing on the MLS, you could have several other interested parties waiting in the wings just in case. You re concerned about privacy
Once a home is listed on the MLS, that listing is available for anyone to see. If you prefer anonymity — a common occurrence for celebrities and other public figures — a pocket listing provides that. “In my experience, most sellers who use pocket listings don’t want everyone knowing they are selling,” says Michelle Goetzinger, a real estate agent with Realty One Group Gold Standard in Pittsburgh. “They want a fairly private transaction.” You want to test the waters
Another reason someone might choose a pocket listing is to get an idea of how much buyers are willing to pay for the home. If you start out on the MLS with an asking price that’s too high, you might be forced to reduce it — and that becomes public record. A property that sits on the market gathering dust can be a red flag for buyers, who might wonder if there is something wrong with it. By keeping it as a pocket listing, you can avoid giving potential buyers the impression that no one is willing to pay the price you’re asking. “This way, sellers can test the market without really setting a final price and not have to open their home for every stranger on the MLS who wants to see it,” Goetzinger says. Pocket listing pros and cons
As with any decision related to selling your home, it’s important to consider both the benefits and drawbacks of a pocket listing. Pros
Provides privacy for both parties in the transaction Allows for a smooth sale if you have a buyer already lined up Can give you a better idea of a reasonable price, avoiding the possible need to later Cons
Limits competition and between potential buyers, which might cause you to make less money on the sale. “You could be leaving substantial money on the table by not doing a traditional listing,” Goetzinger says. Difficult to promote without the MLS, and therefore can take much longer to sell Likely won’t have other interested buyers to fall back on if the deal falls through Bottom line
Pocket listings do serve a purpose in the real estate market, especially for sellers with privacy concerns or with a buyer already lined up. But for most sellers, it makes more sense to go the typical route. The , so the majority of sellers will want to take advantage of every marketing and promotion opportunity possible while things are still hot. Learn more
SHARE: Ben Luthi is a personal finance and travel writer who loves helping people learn how to live life more fully. His work has appeared in several publications, including U.S. News & World Report, USA Today, Yahoo! Finance and more. Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Related Articles