Are you thinking, “I want to sell my house fast in Philadelphia, but I’d rather avoid a public listing?” If so, a pocket listing may suit your needs. This method is the new private way of selling a home, favoring discretion for the sellers. Unlike most listings on the Multiple Listing Service, pocket listings remain unlisted in public databases and are often seen by fewer buyers within an agent’s private network.
Here’s exactly what the sellers need to know about pocket listings: how they work, their pros and cons, and why sellers would choose them.
What Is a Pocket Listing?
A pocket listing is an off-market real estate sale managed by one broker or agent with no listing on MLS. It is often referred to as an off-market listing, and it’s done in favor of sellers who prefer some form of minimal exposure. Instead of being placed on the open market, the property is only shown to a few choice buyers, giving sellers even more control over the selling process. High-profile individuals or those undergoing more sensitive personal circumstances, such as divorce, often seek pocket listings for privacy.
How Pocket Listings Work
Agents usually include properties in the MLS in a traditional sale, following the regulations of the NAR (National Association of Realtors). The pocket listing holds an agent not including a property in the MLS and only markets it through private channels. This process keeps the sale more exclusive since it is shared only with the buyers with whom the agent or seller has elected to share it.
In most cases, NAR’s Clear Cooperation Policy requires an agent to list a property within one day of public marketing publicly. However, pocket listings bypass this rule by avoiding broad advertising, which might otherwise include social media, public websites, or yard signs. This strategy can benefit sellers by maintaining a low profile for the sale.
Advantages of a Pocket Listing
- Exclusive Agent Control: The agent manages the sale privately and keeps full commission.
- Market Testing: The sellers gauge interest and pricing privately before listing publicly.
- New MLS Listing Option: If listed later on the MLS, it appears fresh to buyers.
- Increased Privacy: It limits foot traffic to only serious buyers, enhancing privacy.
- Less Buyer Competition: Fewer buyers create less competition, aiding buyer negotiations.
Disadvantages of a Pocket Listing
- Limited Visibility: The minimal marketing restricts buyer reach, possibly resulting in fewer offers.
- Missed Exposure: The lack of MLS and signage reduces property awareness and demand.
- No Bidding Wars: The limited reach may lead to fewer or lower offers, reducing the chance for competitive bids.
Are Pocket Listings Legal?
Yes, pocket listings are legal but are subject to specific MLS rules. Sellers who want more visibility without broad exposure can sometimes enter their home as an office exclusive, where it is visible only to agents within the same brokerage. This rule benefits larger brokerages with a broad agent network, allowing for semi-exclusive exposure without going fully public.
An Alternative: Selling Directly to Cash Buyers
Consider selling to cash buyers if you want a quick, private sale without listing. This route offers speed—often closing in as little as a week—and avoids traditional agent fees and the hassle of preparing your house for the market. Cash home buyers in Philadelphia, like Diamond Equity, make it easy to sell your house fast and as-is. There are no repairs and no delays of a traditional sale.
