A pocket listing is a U.S. real estate practice where a broker holds an exclusive listing agreement but the property is not advertised or entered into the MLS, or advertising is limited for a set period. Some proponents argue sellers may benefit from lower commissions when buyers' agents are excluded. Critics counter that pocket listings deny full market exposure, reduce competitive bidding and multiple offers, and typically favor brokers through limited access. Large brokerages increasingly use off-market listings, prompting public debate among CEOs about MLS and portal transparency. The trend could reshape residential sales unless antitrust authorities intervene.
A pocket listing is a real estate industry term used in United States which denotes a property where a broker holds a signed listing agreement (or contract) with the seller, whether that be an "Exclusive Right to Sell" or "Exclusive Agency" agreement or contract, but where it is never advertised nor entered into a multiple listing system (MLS) or where advertising is limited for an agreed-upon period of time.
It fails to provide the full market to the seller's disposal to receive the best possible price, meaning the largest bottom line. Pocket listings rarely create multiple contract offers. Pocket listings close out true competition for the property through open bidding. My thought is this. Like it or not, we are a country built on competition. Competition creates opportunity and opportunity creates advantage. I have to wonder does a pocket listings help the seller or do they just help the broker.
Collection
[
|
...
]