While homes that go on the market are normally posted on regional databases or multiple listing services (MLS), there are some properties that aren’t. This concept is known as a pocket listing, off-market homes, office exclusive listings, and other terms, and is an unorthodox home-selling strategy that involves lowering the visibility of prospective homebuyers. Instead, knowledge of their sale is spread through word of mouth and through real estate agents and their private network. In other words, they’re unlisted homes for sale that aren’t publicly advertised.
Due to the more secretive nature of this selling method, it has been difficult to determine how many homes have been sold as pocket listings. However, experts in the housing market industry believe the practice became more popular during the pandemic. Given how unconventional pocket listings are, there are many unique advantages and disadvantages associated with them. To learn more, here’s an overview of the pros and cons of unlisted homes for sale.
Pros of Pocket Listings
One major reason people opt for selling unlisted homes for sale is privacy. Some homeowners don’t like strangers lurking around their homes and having to deal with high foot traffic, nor do they enjoy constantly having to make their property presentable for buyers. Pocket listings give sellers more privacy and control over who has access to their homes and, as a result, it is a common tactic for celebrities and wealthy individuals.
Aren’t sure how much you want to sell your home for or are unsure if you want to place it on the market at all? Putting unlisted homes for sale is a unique method of testing the waters and using the information you gathered before placing it on the MLS. This helps you avoid home mispricing and gives you the option to make changes before making the home’s sale public.
Off-market homes also have to deal with fewer expenses. For example, unlisted homes don’t have to contend with several costs associated with normal home selling, such as the public marketing campaigns real estate agents usually need to pay for. Plus, you won’t have to hire a professional photographer to take photos for listing on a database.
Cons of Pocket Listings
While unlisted homes for sale can cut costs in some areas, they may ultimately lose more money. The more exposure a home has, the better sales prices it has through bidding wars and buyer competition — which will be lost when very few people know about the existence of the sale. In addition to ending up with a lower sales price, it may take longer to attract a buyer willing to pay your price. Real estate agents will also need to find buyers on their own, which isn’t a concern when the home is put on the MLS.
There are also many restrictions regarding pocket listings. To make transactions more transparent, the National Association of Realtors created a rule that requires sellers to put properties on an MLS within one business day before it goes on the market. Off-market homes are also controversial because of how they can contribute to discriminatory practices that segregate the housing market. As a result, many real estate brokerages outright refuse to sell pocket listings and some states in the country have made certain aspects of making unlisted homes for sale illegal, such as dual agency transactions.
How to Find Pocket Listings
Given the secretive and somewhat infamous practice of pocket listing, knowing how to find pocket listings can be tricky. Because connections are so important for learning about them, contacting and speaking with a real estate agent — especially one with many connections of their own — will help bring you closer to pocket listings. Some sellers also forego real estate agents and advertise on local newspapers, websites, and social media, among other sources. Although it is not a surefire method of finding them, it is possible to learn about unlisted homes for sale through the grapevine if you ask around. Friends, relatives, and acquaintances may know someone in their social circle that is selling an off-market property.
If you want to learn more about unlisted homes for sale and would like to browse Philadelphia Main Line properties and south Philly houses for sale, give The Mike McCann Team a call today and schedule an appointment.
