What exactly is a Pocket Listing and why are they used?
For various reasons, property owners will discuss with their agents the pros and cons of keeping their home for sale as a pocket listing. Not every pocket listing is treated the same and here in Santa Barbara and Montecito it really depends on the price point and activity of the market.
First…what is a pocket listing? A “pocket listing” is a loose term given to a home that is listed with a broker and for sale, yet it is not submitted into the MLS (and thus actively out to the public). It is known only via word of mouth and via phone calls so to speak and is thus sold “off the market”.
So why are they used and why would a seller not want the maximum exposure for their home via the MLS? Answers tend to be to test the market price, privacy and to not have all the time on the market of keeping your home ready to sell.
Home owners will often ask for their home to be a pocket listing so that they can test the “market” price of their home without the full traditional marketing exposure. If the home gets good response and the sellers are happy with the few buyers that see the home and the offers that are submitted, then the strategy works for them.
Additionally, often pocket listings are used by sellers that do not want neighbors to know they are selling or are simply very private people and do not like the fact of having numerous people visiting their home. This can especially come into play for sellers that are well known to the public.
Lastly, with the market being very strong as it is today here in Santa Barbara and Montecito, having a pocket listing creates its own buzz about being “private” and finding something off the market. This alone can often lead to favorable offers for sellers and for quick transactions and not having to deal for sometimes weeks with your home being for sale.
The negatives of having your home only as a pocket listing are that the MLS and the internet in general give you a potential audience of millions. Generally speaking, the larger the audience, the greater the possibility a buyer will surface offering most likely the highest possible price.
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For more information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our wonderful town, please don’t hesitate to contact Kevin Schmidtchen at Sotheby’s Int’l Realty.
Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to contact me or comment below with any thoughts.