Sometimes referred to as an off-market, quiet, or exclusive listing, in simplest terms, a pocket listing is a property that is for sale but has not been publicly advertised. That the home is for sale is shared only through a limited network of agents or with select buyers. You won’t see a pocket listing pop up on an MLS or a For Sale sign in the front yard.
There are a number of reasons sellers may be interested in a pocket listing. They may want to maintain privacy, quietly gauge market interest, or offload a property quickly. This can be especially appealing if the seller has a buyer in mind or a go-to real estate agent that has already demonstrated that they have a network of qualified, ready buyers (often investors) looking to close quickly on available listings.
Let’s take a look at how pocket listings work, the pros and cons as both a seller and buyer, and considerations to keep in mind when evaluating a pocket listing strategy.
Pocket listings are typically first initiated by a seller. When sellers are looking to put a home on the market, they have the choice of several listing agreements that ultimately govern how an agent or agency will offer the home for sale. This agreement includes the terms for earning a sales commission, how the home will be marketed, and what authority is granted to an agent or agency to represent the seller in the transaction.
Some sellers elect to pursue a more traditional listing path. They hire an agent or agency and market the home as aggressively as possible in hopes of a quick sale, a higher sales price, or, ideally, both. Others opt for a FSBO listing, where they publicly market and list the home and steer the sale process themselves.
The key difference in pursuing a pocket listing strategy comes down to a private offering.
To initiate a pocket listing, a seller usually has a dedicated agent or agency in mind with the goal of privately marketing a property they're looking to sell. The property could be their own personal residence, but it may also be an investment property or a property that has been inherited, such as a parent or loved one’s estate.
A seller might also make a pocket listing with a hybrid-FSBO strategy. Instead of publicly marketing the home, the seller may privately ask their network of family and friends if anyone is interested in purchasing the property or knows of someone who is. This approach can sometimes uncover a ready buyer.
There are a number of reasons a seller may choose a pocket listing.
Pocket listings can offer advantages for both sellers and buyers with specific needs that would not be typically available with a traditional sale.
As with any real estate strategy, there is never a one-size-fits-all approach, and the best strategy for both buyers and sellers depends on a combination of factors, goals, needs, and priorities.
As pocket listings aren’t publicly advertised, finding them often comes down to a combination of existing relationships and networking. Just as a seller may already have an agent identified, a would-be buyer looking to enter the market may also have a go-to agent in mind and ask if they know of anything coming on the market.
Sometimes, private military social media communities can produce viable leads for off-market properties. It’s rarer, but happens, that a property currently advertised as a rental may also have an owner who’d entertain selling. As a buyer, respectfully inquiring never hurts, but before deciding whether to approach a potential seller or property, keep in mind whether you want to keep your own buyer’s agent for assistance and guidance.
Learn more: Do I Need a Buyer's Agent to Buy a House?
No, but there are considerations and restrictions to keep in mind. Because pocket listings aren't publicly marketed, sellers should be aware of the potential for discriminatory concerns and unwitting violations of Federal Fair Housing law. Advertising cannot indicate a preference or discrimination for or against a protected class, such as race, color, religion, sex, national origin, familial status, or disability.
If a seller submits a signed listing agreement to list a property, the agent generally must submit the property to the corresponding (and public-facing) MLS (Multiple Listing Service) within a set timeframe of receiving the signed agreement, often within one to two days.
Additionally, a listing agent who is also a member of the National Association of Realtors (NAR), is subject to the Clear Cooperation policy guidelines, which dictate that the broker must submit the listing to the cooperating MLS within one business day.
Last, buyers and sellers should be mindful of the increased potential for a "dual-agency" or "dual agent" situation, where one agent is asked to represent both buyer and seller. This is illegal in many states, and heavily regulated in states that allow it. Why, you may ask? A dual agent scenario can present a significant ethical dilemma for the seller’s listing agent, as the agent is trying to serve two parties with opposing interests.
Yes, the key difference for a pocket listing is how and when you market the sale.
In a traditional FSBO (For Sale by Owner) strategy, the seller handles the sales process themselves, without their own listing agent. This typically also coincides with publicly listing the sale, either through physical "for sale" signs posted on the property, flyers, or digital ads in local markets (such as local social media groups, or military communities), creating an ad on MilitaryByOwner, or listing the home on an MLS, which requires the seller to determine how to list on MLS in their area. Then, they will need to facilitate the sales process once an agreed-upon bid is submitted from a buyer.
As a pocket listing, a FSBO-minded seller would not first publicly advertise the home, but instead, inform their network that the home is for sale by owner. That network will mention the intent to sell to friends, neighbors, co-workers, or social groups to gauge interest and possibly locate a buyer, without the hassle and coordination of fielding calls, emails, and showings. If an interested buyer is found, the seller and buyer could then connect to create a contract and move forward with a sale.
No, "coming soon" does not equal "pocket listing." It simply means that the home isn’t officially for sale on the market yet, but it will be in the next few days or weeks.
A "coming soon" advertisement also states when the home is hitting the market. The goal of listing a property this way is to generate interest before the listing date, streamline showings, and build anticipation and interest, while giving the seller or seller’s agent more time to prepare the property. A true pocket listing won’t be advertised publicly at all.
A buyer may attempt to submit an offer on a "coming soon" property, but the seller is under no obligation to review or accept it. Depending on local regulations, the seller’s agent may be prohibited from showing the property until the active listing date.
As with many real estate scenarios, it depends. If you have a trusted connection moving to the area, and you know they're interested in buying your home, a pocket listing can make sense. However, if you’re in a hot market and expect multiple offers, it’s probably more advantageous to market the home as aggressively as possible, either with your own seller’s agent or as a FSBO, to create an environment for the highest bid.
One caveat where a pocket listing will be an ideal selling strategy is if the property is currently operated as a rental and the seller is using a professional property manager. It is quite possible that this real estate team knows a pool of investors looking to acquire new rentals, and your property might just be the perfect fit. For a seller anxious to offload a property or a seller that has found themselves as a reluctant landlord, a pocket listing could be a promising selling strategy.
Maybe, but you need to carefully review your listing agreement, which should include a termination or failure to perform clause, to ensure that you lawfully and correctly execute a termination for cause. Many listing agreements also include a carry-over period (90 to 180 days is not uncommon), where the agent may still earn a commission if they were responsible for locating an eligible buyer, whom you are now attempting to lure with a pocket listing.
Absolutely yes, to both.
If sellers are prioritizing convenience and privacy over maximum profit, this can create savings opportunity for buyers. And no, as a buyer, you might actually be the only offer for a pocket listing and will still maintain the right to negotiate.
For sellers looking for a private, quieter sale, perhaps at a slower pace, understanding how to choose a realtor who is comfortable with discreet marketing is essential, and for flexible buyers looking for off-market opportunities, a pocket listing will be the perfect fit.
While there are trade-offs in marketing visibility, for sellers looking to gauge interest, protect privacy, or who already have a buyer in mind, a pocket listing could be the right move. And as always, whether you are a seller or buyer, MilitaryByOwner has the resources to support you every step of the way!