Pocket listings, also known as off-market listings or whisper listings, are often known to be exclusive to celebrities and higher price points. Whether it’s to maintain an air of secrecy or to test the waters of the real estate market, they are actually relatively common with every-day sellers as well.
“If I have a pocket listing, I try to push the seller to get it on the market,” Zach Goldsmith said. “The more exposure you can get, the better off you are.”
This is one of the controversial opinions on this topic that encourages sellers to officially enter the market to reach maximum exposure, optimal reach, and garner the most offers.
“After more than a decade in this business, I’ve found that marketing a property gives owners the most reach, generates the most offers and typically leads to the highest bid,” states Matt Lesser, a partner at Leslie J. Garfield & Co.
Another down-side to transactions such as this is that there is minimal negotiating power for either side of the transaction, according to experts. “That means that buyers could pay more for the property than anyone else would be willing to, and that sellers might leave money on the table. If you don’t go on the open market, you simply don’t know what the property’s worth,” Mr. Lesser said.
On the other hand, pocket listings can be viewed as a rather positive decision for many reasons as well. Listing a property that a buyer is never going to find online is on way to harness interest amongst a select type of clientele. Certain types of properties lend themselves to this type of sale to avoid spoiling the exclusivity factor. These listings include rare architectural projects, celebrity homes, homes listed at high price points, etc.
Buyers, too, are often drawn to pocket listings for factors such as being the buyer and owner or an exclusive property not offered to the general public or even to purchase a property in the midst of a time crunch. This often happens by contacting an in-the-know broker who has experience with this in a specific area.
Each property is said to need a different type of exposure, and each buyer and seller have different preferences when it comes to personal real estate transactions, so exploring the realm of pocket listings might be something to do before entering the real estate market to decide on the best way to market your home.
For more information on pocket listings, read Pocket Listings Provide Anonymity but Don’t Always Result in the Best Deal by Mansion Global.