Pocket listing are nothing new, but before putting your home on the market with just an individual agent or company, i.e. not listed in the MLS, you should be aware of the pitfalls as it may reduce your final sales price. It doesn’t matter if your in Sun Valley Idaho or New York, the sames issues apply.
Below is an article about how the California Association of Realtors is dealing with this issue in an attempt to make sure these potential problems are disclosed to sellers prior to putting their properties on the market for sale. Many times the only person that gains from a “Pocket Listing” is the listing broker. Now to the article, plus a link to the disclosure publication CAR created.
Pocket listings can adversely affect a seller’s goal of getting the best price reasonably for a home
About 1-in-4 home sales are reportedly pocket listings in some Northern California markets, and the California Association of REALTORS® is warning agents to tread carefully.
CAR says that pocket listings or off-MLS listings are not illegal if the listing agent fully discloses the pros and cons to the home seller and follows the rules, but CAR says pocket listings “may not be in the best interest of the property owner — particularly if a client does not know about the benefits of marketing his or her property through the MLS.”
CAR warns that “pocket listings” can adversely affect a seller’s goal of getting the best price reasonably for a home.
The increase in pocket listings has alarmed many in the industry, particularly at a time with inventory shortages in many markets. For example, 26 percent of home sales were pocket listings in the first quarter of 2013 in some Northern California markets, according to a recent study by MLSListings Inc. That’s an increase from 15 percent in 2012
CAR has published a booklet on pocket listings for agents to provide to their clients, “The Pros and Cons of Off-MLS Listings: What Consumers and Real Estate Agents Should Know.” CLICK TO READ