In the often complicated world of real estate transactions, real estate agents and other players in the know tend to throw around a lot of terms. The meanings behind this property terminology are not always intuitive to home buyers and sellers. Just the same, it’s integral to a satisfactory real estate transaction that you understand at least some of the terms being used. This includes the definition of a pocket listing.
As you probably guessed, a pocket listing is a term that comes from the United States real estate industry. It refers to a piece of property where the seller and real estate broker agree to sign a contractual listing agreement. This agreement is either considered an Exclusive Right to Sell or Exclusive Agency contract. As a result, a multiple listing system (also known as MLS) is never made use of, and it is also possible that the property’s advertising has been limited for a specific period of time agreed upon by both parties.
Whenever a home seller hires a real estate broker to sell their house, a listing agreement is written up and executed to ensure everyone is on the same page. In a situation where the agreement is an Exclusive Right to Sell contract, the property is agreed not to be listed in MLS. This implies no agreement to work cooperatively with other brokers, although the hired broker does usually cooperate with other brokers anyway to share some of the total commission the seller pays when the house is sold.
An Exclusive Agency agreement, in the alternative, is a contract where the right to sell the property is given to the one broker alone. Consequently, no offer is ever extended to compensate another broker. The property again is also never entered into MLS.
Reasons to want a pocket listing vary by seller. Sometimes the reasons are logical, such as when the seller feels the need to privacy or discretion in his or her real estate transaction. Other reasons are less noble, where the seller wishes to only sell the property to a certain type of person. In some instances, this could amount to discrimination. In any event, a pocket listing is an option to consider if you seek privacy in your real estate dealings and want to put your trust entirely in your real estate broker to ensure your home sells successfully.
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