What is a "pocket listing"

I'm not a big fan of pocket listings but sometimes they actually do sell a house. Lets say you are thinking of selling your home. Maybe you are not quite ready to commit to listing it with a Realtor. There are many people that are working with agents and looking for a particular house. Perhaps your home is just what someone else is looking for. Realtors that are great salesman tend to spread the work with other agents about what their buyers are looking for and what seller's have available. If you have decided to let an agent try to sell your house by word of mouth, this is what we call a pocket listing. Chances are your home won't sell this way as most homes that sell are ones that are advertised and listed on the MLS. But perhaps the agent that you have met knows someone that is looking for exactly what you have. Many people love getting to look at a property before it's on the market. You know that feeling that you are getting to look at something before anyone else does. Remember if you have told an agent that you wish to let them have your listing as a pocket listing, you will not get the exposure that you would get if your property is on the market. You also are under no contractual obligation to list your home with that agent in the future (unless a contract has been signed). Most agents will request you sign a Single Party Compensation agreement prior to showing your property to a buyer. That way there is an agreed upon compensation/commission in case this buyer decides to sell.