Sunday, February 3, 2013

It's A "Pocket Listing"?

By: Lea France at Fannie Mae

Being an REO Sales Representative I am frequently asked, what is a "Pocket Listings"? 

A "pocket listing" means that a home is not listed in Multiple Listing Service, (MLS) and it is not known to the public, but it is being marketed directly by the properties real estate broker. It is in that brokers "pocket". This is also referred to as an "exclusive listing," and they are very popular.

There are plenty of rules in place at MLS. You can block the address and show only one photo of the property. But this is not enough privacy for most sellers with a million dollar property. Most of these sellers request a "pocket listing" and I don't blame them.

With a "pocket listing" a seller and their agent can also quietly test the market. They can measure the reaction to the price they are asking and see what kind of traffic they get and how the market receives the property without the MLS clock ticking. Read my recent article "what is my house really worth".

"Pocket Listings" are known only by top agents who share information privately among themselves. This way the seller and the agent have control over who knows the home is for sale, and who can look at the property.

They want all potential buyers that visit the home to be pre-qualified. A GE Supra lock box on the front door just won't do. Most "pocket listings" are very luxury home, worth more than one million, and will look similar to Place Des Victories. Most buyers pay cash for these home.

Many of the wealthy and well known, with homes to sell are not interested in posting dozens of photos online to be viewed by millions, and they certainly do not want hundreds of strangers walking through their home during an open house, opening closets. These off-the-market listings (pocket listings) have been around for many years.

"Pocket listings" are not always just for the high end seller, they are for anyone that chooses it. There are many sellers that are not wealthy that request a "pocket listing". Some people simply do not want their neighbors to know their business. But most of the "pocket listings" are properties worth more than one million.

Written by:  Lea France, Sales Representative at Fannie Mae

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