An off-market listing, or a property offered to prospective purchasers through private channels instead of the MLS, is called a pocket listing. A real estate agent keeps the listing in their metaphorical "pocket" until they locate a buyer through word-of-mouth or their own personal network.

A pocket listing won't be inundated with internet spam or have any big, eye-catching yard signage. Marketing a listing to a certain clientele while keeping it hidden from the public is a challenging task for a real estate agent.

How Do You Run A Pocket Listing?

Listing agents who are not members of the National Association of Realtors (NAR) usually oversee pocket listings. The organization has disallowed pocket listings. There is, nevertheless, a listing option marked "office exclusive." Office exclusives restrict the marketing of pocket listing agreements to the brokerage and its affiliate companies. It's important to remember, though, that certain states provide an exception.

Despite the difficulties, there are a few reasons why some vendors choose pocket listings:

1. In an attempt to close a deal quickly, sellers would want to sell straight to a known buyer.
2. By keeping your listing private, you can lessen the likelihood that many price decreases will be shared on the MLS, which may turn off potential buyers.
3. If the seller is a famous person or other public figure, keep their house sale private from the public.
4. Before listing their house for sale, some sellers prefer to check whether any interest will be shown at the agreed-upon price.

Do Real Estate Agents Benefit From Pocket Listings? 

Pros Of Pocket Listings

• Real estate agents that use pocket listings keep their entire commission rather than having it split.
• Buyers represented by an agent have access to homes that they would not otherwise find. This enables purchasers to submit an offer and expedite the closing process. Customers are more likely to recommend you or come back if they can have this special experience with you.

Cons Of Pocket Listings

• Because each listing receives a disproportionately small amount of publicity, sellers with pocket listings may receive fewer offers on their property. Furthermore, there's little chance for the price increase that frequently results from a bidding war.
• Real estate brokers may find it challenging to ascertain precise home values in the neighborhood when listing prices are concealed.
• Adherence to the law may become a contentious matter. Housing regulations mandate that all people, regardless of demography, have access to dwellings. An agent treads very carefully when it comes to this line of not disclosing the property to the public.
• In order to avoid drawing too much attention, purchasers must be properly screened; yet, you must collaborate with other brokers to determine whether they have any qualified candidates.

How To Locate The Correct Buyer And Subtly Promote Pocket Listings

These are the best non-attention-grabbing methods for promoting your pocket listings.

Select the Right Audience: State that locals may "choose their new neighbors." Everyone would want a friend nearby, and locals may know someone who could be interested in the house.

Email marketing: One of the best ways to advertise your pocket listing is to contact people you already know and have a connection with. If your contacts are appropriately categorized in your CRM, creating an email list for listings that aren't on MLS will be easy.

Make Contacts: The best recommendations may come from your professional contacts. When they recommend you to others in their network, it's excellent if you share some connections. You can start a chain reaction of referrals with a sequence of well-timed exchanges and recommendations!

Sponsor Events: Even if your list is exclusive, you can still use conventional advertising techniques. Consider sponsoring high-end business events that attract wealthy people who may be interested in your properties. Another choice is to work with the local vineyard to get businesses to support specific events, such as the art auction.

Google Ads: Google Ads are not visible to everyone. You may tailor your ads to just appear to individuals with specific interests in specific locations, and you can use specific keywords that only people in your niche would be familiar with.

Finishing Up

Sometimes, pocket listings are a sensitive topic. Not every agent loves them, but for certain customers, they are essential. Finding a real estate agent who is adept at handling pocket listings is a big plus for the few clients who utilize and profit from them.

Finding the right buyer is, of course, the most challenging aspect of pocket listings. By following the tips above, you may cut down on the time and effort needed to find the right buyer for your off-market property.