Have you ever noticed new owners moving into a
home you didn’t even realize was for sale?
Have you ever wondered why some
homes only appear on the market for “one day” in MLS databases?
It’s time you
understood what a “pocket listing” is in real estate.
Not every home sold gets a shiny new for sale sign out front. Some
change hands quickly and quietly without any public advertising whatsoever. In
the industry, these are known as “pocket listings.” Pocket listings are
sometimes referred to as “coming soon” listings or “whisper” listings.
Pocket listings used to be the domain of the very famous or the
very wealthy. People who liked to protect their privacy would typically work
with an agent who could find a buyer among word-of-mouth networks of agents
representing high-end buyers. Often this happened only in urban areas or in the
luxury segment, but now in markets where inventory is tight and bidding wars
are not uncommon, pocket listings are becoming somewhat more mainstream.
You might ask yourself: Why not advertise a home in a market where
multiple offers are the norm? It can depend. In some cases, the seller may want
a quick and painless sale, and would prefer not to go through the traditional
process of cleaning, curb appeal sprucing, and open houses. When the seller’s
agent happens to know the buyers directly, often a simple walk-through with
prospective buyers is enough to secure one acceptable offer.
Sellers should understand that it’s possible for a pocket listing
to generate a slightly lower price. While it’s not always the case, the
trade-off for a quick, quiet sale may be worth it. If you’re considering a
pocket listing, you’ll be asked to sign something which indicates your consent
to avoid a wide-scale advertising effort. An agent has a responsibility to try
and secure a seller the best possible price, and will want to make sure there’s
a clear understanding.
One slight marketing advantage the pocket listing retains is the
idea that buyers are getting special access to a property others will never
know hit the market. For the seller, a pocket listing can also prevent the
unfortunate experience of having a home’s value decrease because it sat on the
market too long.
On the whole, casting the widest possible net for a buyer is the
best strategy for securing the highest closing price, but if you’re more comfortable
with a quick and quiet approach, you might want to talk to an agent about the
prospect of a pocket listing.
Thinking of selling, but would like to have a conversation before you commit? Get in touch with me today: valerie@valeriemcconville.com
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