You might be familiar with the term pocket listing by now since it has become more popular during this current housing market. A pocket listing, also known as a “quiet” or “off-market” listing, is a property for sale that an agent doesn’t officially list on the MLS (multiple listing service), but instead keeps in their “pocket.”
Pocket listings started several years ago as a way to market expensive homes or properties of high-profile people while staying under the radar. This allows the seller and agent to test the market’s reaction of the property sales price without the days-on-market clock ticking as it does when listed on the MLS. The agent can also potentially reap commissions from both the buyer and the seller.
Housing inventories have remained low but pocket listings could be skewing the numbers since they are not tracked. Lawrence Yun, chief economist for the Realtors said, “Statistically it appears that we are getting back to very balanced market conditions. However, the sentiment out there is that we still have a shortage of inventory, and I think that is due to the prevalence of pocket listings in some markets.”
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