Pros and Cons of Broker Pocket

Broker Pocket

A Broker Pocket is a home listing that is not shared on the Multiple Listing Service (MLS) and is instead marketed internally through private agent networks and select groups. In these situations, the real estate agent can usually keep the full commission without having to share it with other real estate professionals working on behalf of buyers.

Pros of Broker Pocket

There are a variety of reasons why a real estate agent might choose to market a property as a pocket listing. For some homeowners, the biggest benefit is privacy. Celebrities and public figures often use pocket listings to prevent the public from knowing they are selling their homes. The practice is also popular for sellers who want to avoid the influx of “looky-loos” that comes with open house showings.

Untapped Real Estate in an Agent’s Pocket

Other pros of pocket listings include the ability to test an asking price and gauge interest in a property before going public or to sell to a buyer that has already been introduced to the property. Finally, using a pocket listing can help to reduce the time on the market and lower the number of home price reductions that would otherwise raise red flags for prospective buyers.

Cons of Broker Pocket

The most obvious downside to a pocket listing is that it severely limits the pool of potential buyers. A lack of MLS exposure means that the property will not be able to attract the kind of competition that can lead to bidding wars and maximize a seller’s return on investment. Additionally, a lack of MLS exposure can make it difficult to research home sales data and can skew property valuations.