Are "Pocket Listings" Bad for Sellers?

Hello All! 

I'm very excited to have a few minutes to finally log in and see what everyone has to say!  It's been a very busy weekend in Key West showing property.  I'm ready for a nap... right after I catch up!

Joetta, thank you so much!  I've done the same thing and learned to be short, sweet and to the point from this post!

Hi Erick, Coming Soon signs are legal here in the Florida Keys and an area with a lot of frustration.  When I'm selling it seems like a great benefit to a seller to get the word out as early as possible.  But it can be frustrating in a low inventory market to feel like

Hi Joanna, thank you so much!  What a shock!  A friend sent an email and that's how I found out.  Getting a feature has got to be one of the most exciting things that can happen!  I gotta say 'thank you' to everyone who shared their experiences!

Thank you so much John!  It's interesting to hear what's going on around the country and hear your take on Pocket Listings!

Hella, I agree!  That's the most common way that I see them too.  It seems like unmotivated sellers favor this type of no-commitment listings.

Hi Michelle Carr-Crowe, thank you for shedding licke on some more good reasons why a seller might choose this option. 

Jane Chaulkin-Schott, excellent point about record keeping.  What a nightmare to have a Pocket Listing come and bite you in the butt later!

Cindy Jones, Pocket Listings seem to cost a seller money in the Florida Keys too.  It's common to have a buyer see a sold comp that was input for 'statistical purposes' ask you why it sold so low.  Occasionally a Pocket Listing sells for market rate, but they usually seem to be a steal of a deal but maybe that's my perception rather than reality!

Jimmy Faulker - great use of a Pocket Listing that seems to be good for everyone!  What form do you use for a Pocket Listings or have you made one?  Or do you take the seller on their word that they will give you the commission if you bring a buyer?  Does the seller pay you and the buyer's agent?  Most Pocket Listing sellers I've talked to only want to pay the buyer's side of the commission.

Good point about fiduciary duty Richard Iarussi!  Money has got to be left on the table.  Listings in my area can sell for $20,000 to $150,000 more than asking price. 

Pocket Listings do have merit for sellers in certain circumstances Jean Marie and Wayne Zuhl!  Agents have brought up so many good points that I never thought of.

Hi Morgan Evans, Pocket Listings must be an everyday experience in Manhattan.  It's fun to hear from places all over the US and what agents are seeing and experiencing.  I can't imagine what it's like to sell property in Manhattan!

haha Dana Basiliere!  Maureen did cover all the bases and made a strong case for both options.

I can see your point Raymond Denton!  Do you expect to get over market or do you like the simplified process of a Pocket Listing when you think about selling your own home? 

 
Hi Maureen Megowan, you make a STRONG point for and against Pocket Listings!

Thank you Brian Sharkey!  Have a great weekend!

Absolutely!  I agree Edward and Celia Maddox!


30% Bryan Robertson!  WOW!  How difficult it must be to work with a buyer!  I can't imagine what it's like to do business there!


If a traditional listing is good enough for country music royalty than it ought to work for the average person!  Thank you for the insight Tammie White!  Pocket Listings do seem to benefit a listing agent.  I wonder if most Pocket Listings pay a full commission or if most pay just the buyer's side? 

Hi Joe Pryor, very interesting to hear that!  I'm sure that decision was based upon some serious reasons.

Great points Jason Rankin!  In most ways it seems crazy to give an agent a Pocket Listing!

Thank you Leslie Helm!  I was completely shocked.  And so happy!  I have a buyer shopping and sold Pocket Listings have been popping up in the MLS marked for "statistical purposes."  It's very frustrating for a buyer to see that sale.

Susan Haughton, excellent point about money not being the end-all-be-all for every seller.  And great point about an agent that would take advantage of a seller in this situation.


Andrew Mooers, great idea about videos taking the place of strangers tromping through a persons home. 


I agree Dorie Dillard!  When I have a buyer I would prefer to see every available home in the MLS!

Mike and Eve Alexander, it would be very upsetting for a seller who gets by passed for a Pocket Listing.   I didn't even think about that!  Thank you for sharing.


Hi Linda Balades, having a home on the market can be exhausting for a seller.  There are a lot of sellers who would rather see it sell fast than for more money to avoid the circus.

Hi Harry D'Elia, a great data base and client base could be helpful to a seller and be of great benefit to them.  What if you end up in a multiple bid situation with your seller and your buyers?  Wow, that could be a tricky mess!

Hi Chris Miller, reminds me of the stories about horse and cow traders back in the 1800s too now that you mention it! 


Hi Norman Padula, land can be a bear trap in the Florida Keys.  We have so many intricate laws and traps that an unsuspecting buyer could find themselves in.  Scary stuff.

Hi Richie Alan Naggar, it's nice to hear about agents standing up for themselves.  If we take a stand when something like this comes up it makes our profession better for everyone.  Let's get rid of the bad apples!


Hi Carol Zingone, it almost always seems like a Pocket Listing sells for less than a traditional listing.  So... maybe Pocket Listings are good for buyers!  What a tricky spot to be in if you are the 'listing' agent on a Pocket Listing.  Seems like an accident just waiting to happen!


Good points Gary Frimann.  Potential drama in every direction!

Hi Jeffrey Stevens, good point about a property being 'one of a kind'. 


I gotta agree Tom White!


Hi Gloria Laughton Allston, I'm surprised by how many sellers want to offer a Pocket Listing!  At least once a month a seller will ask me about a Pocket Listing.


Hi Dick and Dixie, that's a good way to frame them - Future Listings rather than Pocket Listings!


Hi Michael Setunsky, the seller knows what they want and need, once they've seen their options, better than we might.

Hi Barbara Todaro, I'm sure you have many good reasons for that and have thought it through forward and backwards!

Hi Nina Hollander, I wonder WHAT form that agents use to list a Pocket Listing?

Thank you Bill and Mary Ann Wagner!  Thank you for taking the time to click through! 

Thank you Fernando Herboso!  I've learned so much from everyone.  What a blessing it has been to hear from so many great agents about their thoughts, experiences and points of view.  I'm very grateful.

I can see why and understand those feelings Gita Bantwal.

So true Scott Fogelman.  I wonder how many people realize they are going to make less money if they have a Pocket Listing?

I gotta agree Carolyn Kolba!  I wonder if agents who take Pocket Listings talk about this with their sellers.

Hi Jay and Michelle Lieberman, most sellers who offer me a Pocket Listing want to give just the buy side of the commission.  I wonder if agents are getting both sides in a Pocket Listings.  It would be interesting to find out.


Hi Bruce Walter!  I'm happy you don't deal with these listings very often.  Hope it stays that way especially after hearing from everyone.  Agents have made some really good points about some issues that I didn't think about previously.

I agree Praful Thakkar. 


Hi Jon Quist, it's hard not to think that!  I'm surprised by how many agents post the 'statistical sales' in our MLS.


Hi Jeff Dowler, EXCELLENT points.  I can't imagine that a fully informed seller would choose to sell their home as a Pocket Listing!  I can see how a high profile judge could be concerned about safety issues if he has ruled on cases affecting really scary criminals.  The judges would probably prefer some privacy and to not have pictures of their home available on the internet.

Hi Wayne Johnson, it seems like the more exposure the better when it comes to celebrity homes would be better. 

Very interesting Roger Stensland!  I love to hear about how agents and real estate boards are dealing with these issues around the country.

Good points Joan Whitebook.  It's important to take care of our seller the way that they want to be cared for. 


Over the years I've had that happen to me a few times Charles Stallions.  I wonder how many of us remember those sellers when we have a great buyer.