Welcome!




Expand Your Education with These Courses from
Effective Presentation Skills for Sales Professionals: Skills for Sales Success: Part Five.
Expand your education through NAR’s REALTOR® University: A Consumer Advocate Approach to Mortgages: Course 2.
Bundle 2: CIPS Elective Courses (Non-US Version).
The Psychology of Consultative Selling: Skills for Sales Success: Part Four.
Bundle 1: CIPS Core Courses (Non-US Version).

Pocket Listings: Do the Risks Outweigh the Benefits?

Have a comment on this article? Share on Facebook!

By Fredric W. Trester

pocket_listing_300x450A pocket listing is one which is held by the listing agent, and not advertised through public channels such as the MLS. While they are more frequently found in commercial transactions (some brokerages specifically advertise for principals only on Loopnet or other commercial sites), they are becoming more common in residential transactions.

Pockets are often marketed through word of mouth, direct mail, or on the broker’s own websites. Why would a seller agree to a pocket listing, when it obviously does not expose the property to the universe of buyers? Explanations include sellers who do not wish to have unqualified buyers come through their homes, clients who are wealthy and/or celebrities, or sellers who wish to keep the sale confidential.

MLS rules require that listings be placed in the MLS (see Model MLS Rule 7.5 requiring submission within two days). These MLS rules allow pocket listings, but only when a certification signed by the seller is submitted. Many Associations of REALTORS® provide forms such as the “Seller Instruction to Include Listing” put out by the California Association of REALTORS®.

The Risks of Pocket Listings

1. Breach of Fiduciary Duty Resulting in Under Pricing as to the Seller and Overpricing as to the Buyer.

The following real life examples demonstrate this risk. In one case an elderly widow advised her agent she did not want the property advertised in the MLS. The agent brought in an investor with whom she had worked before. After the sale, the seller’s children claimed the property was $300,000 underpriced and sued the agent. Hurting her defense, the agent failed to keep her comps which she gave to the seller.

Continue Reading 1 2 3 4

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.




Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com