I recently learned about Pocket Listings.
From what I understand, a Pocket Listing is a Listing where a Seller may have informed the Agent/Broker that they would like to sell but does not want to list or show the property unless there is a very qualified and interested Buyer.
Is that correct?
An Open Listing is a Listing where the Seller does not want to give an Exclusive Listing to a single Brokerage. Therefore, any Brokerage can sell the property.
Is that correct?
I'm just curious how this all works where neither of these are on the MLS but are known to a specific amount of Agents/Brokers.
Are these passed through word of mouth?
How are the properties marketed? Are these also called "Off Market" Listings?
I'm trying to wrap my head around how all of this works as I'm entering into the Brokerage field soon.
From what I have been reading, the MLS is all about Exclusive Right to Sell Listings. No Exclusive nor Open Listings are on the MLS. That makes a lot of sense because with out an Exclusive Right to Sell, the Listing Broker can be out of a commission and therefore no incentive to list on the MLS. Does that make sense?
Also, is there a good book one can recommend on these concepts other than a text book like the ones to pass the RE Exams?
Thanks so much for your input in advance!
@Llewelyn A. A pocket listing is one where an agent has a signed listing agreement and the seller has agreed to keep the property off MLS for some period of time.
This could be because they don't want the neighbors to know their business or any number of personal reasons. Or it could be that the agent has worked out a deal to give himself time to sell it himself and double-end the deal.
In MA, the local MLS (MLSPIN) requires a "Non-MLS" form if you're not going to publish a listing within 24 hours of signing the contract.
An open listing, as you've stated, is one that is not an "exclusive right to sell". Any agent can represent the seller. These are exceedingly rare in my area, and in fact, I would not accept a listing that was not exclusive.
Most of the pocket or non-mls listing factors in no or discounted commission often priced way above the market price. Sellers are not seriously interested in showing or having signs. With just about every RE site having a guesstimate they often want way more than what the market can support or above guesstimate value. Some translates to public MLS after getting serious. In our area, the broker needs to sign off on it as many brokers do not want to misrepresent these not serious sellers.
As for Open Listing I am not even sure it is proper here in CA.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing