Pocket listings — off-market listings that are marketed directly by the seller’s real estate agent or broker — are growing in number, according to news reports.
Sellers must agree to “pocket listings”; otherwise they aren’t permitted. Some sellers agree to such arrangements to “test the waters” first with selling or to avoid a large number of people from entering their home, or they may seek privacy, like in cases of celebrities or public figures.
Some real estate professionals argue the rise in pocket listings is hurting the housing market because these homes are given limited exposure and are making it more difficult to compare homes and prices.
Usually with pocket listings, brokerages complete the entire transaction in-house, thus collecting both the seller and buyer commission.
“Pocket listings are a good segment of our business,” writes one real estate professional on the RISMedia Facebook page. “Regarding cons with agents taking in full commissions … we charge a flat rate for our pocket sales, much less than a full-percent commission.”
But many agents note that the majority of pocket listings are eventually entered into the MLS.
Source: “Pocket Listings: Helpful or Harmful?” RISMedia (March 14, 2013)
What are buyers seeking?
A new Realtor.com® survey of more than 1,000 home shoppers revealed that privacy is no longer at the top of everyone’s list. More than 20 percent of home shoppers aged 55 and older cite having their own space as the driving factor of purchasing a home, followed by physical comfort and the stability of owning a home. Conversely, only 12 percent of buyers under the age of 55 cited privacy as their chief priority. 17 percent of millennial buyers placed family needs as their top priority when looking for a home, followed by stability (14 percent) and personal expression (13 percent).