Pocket Listings
Some of my buyers are asking about “pocket listings.” Not everybody knows what they are or how they work, so I’d like to explain this “shadow inventory” in southeastern Wisconsin.
Pocket listings are homes for sale that aren’t publicly for sale. These properties never hit the MLS, Trulia, Zillow, or other sites. There is never a yard sign, no open houses, and no published advertising. They’re called “pocket listings” because the listing stays in the agent’s pocket.
The most open of pocket listings are discussed quietly between agents to drum up business. The most private listings are never discussed; agents with active buyers ask around to see who has something available.
Why would a seller want to avoid advertising? Discretion and secrecy are huge reasons. Some sellers live in the public eye and do not want additional political or media scrutiny. Others are controversial or may be unpopular in the community; they do not want their critics and opponents to have additional “dirt” on them. Security concerns (public prosecutors, police officers, corporate executives, etc.) may prefer the discretion that pocket listings offer.
Moving to more mundane concerns, some sellers need greater control over the sale process. Very elderly sellers, those with disabilities, sellers with odd schedules or frequent house guests, sellers with home businesses. sellers who cannot make repairs to the property, and sellers opposed to multiple showings prefer pocket listings.
The downside is a lower selling price. Because the property is never publicly available, the buyer pool shrinks dramatically. Less competition means lower prices. Sellers who use pocket listings must accept that they are leaving money on the table. Furthermore, since the buyer pool is dramatically smaller, the home may take much longer to sell than in a normal sale. Sellers do have one huge advantage if the pocket listing fails; since the home was never publicly listed, it officially has no days on market.
How does a buyer find pocket listings? Since pocket listings never come to market, it is all but impossible for buyers to find pocket listings without an agent. The best option is to hire a connected buyer agent who knows other agents. If you want to discuss finding pocket listings, I’ll be happy to help. I’ve sold a number to my buyers over the years, and they have always been happy to get access to what the general public will never see.
Sellers, do you need a private sale with more discretion? If you are willing to accept the downsides, I can help you craft a pocket listing with the discretion of private marketing. Please let me know if you’d like to have a quiet discussion about a pocket listing for your property.