INDUSTRY INSIGHT
REAL ESTATE
SPONSORED CONTENT
POCKET LISTINGS –
Good or Bad for the Real Estate Business?
I
n just about every market across the country, there is an on-going
debate within real estate circles—is the Pocket Listing a good or bad
thing for business and is it even ethical?
For those who may not know what a Pocket Listing is, it’s an in-house
listing or “office exclusive” where an agent has an exclusive listing
agreement with a seller. The seller is agreeing that the property will not
be listed in the MLS and that real estate agents from other companies
cannot bring potential buyers to the property.
Instead, the exclusive listing agent markets and attempts to sell the
property through their own internal network.
As a Realtor®, our code of ethics requires us “to promote and
protect the interests of the client”. So unless a client has specific
privacy concerns for not listing their property in the MLS, we must ask
ourselves, is signing an exclusive agreement in my client’s best interest?
Or is it in the best interest of the agent and/or broker?
Prior to an agent recommending and entering into a pocket listing,
it is a real estate agent’s duty to fully disclose and discuss the pros and
cons with her client. Many sellers do not realize that by signing an
exclusive agreement they will not be placed in the MLS, thus limiting
their exposure. And that is the most important factor here. Why would
you limit your exposure and not command the most money for your
home by offering to all?
When you have a pocket listing, it is more likely to result in the agent
or broker representing the seller and the buyer, and the outcome
would then be a higher commission for the agent. Of course, this is
not illegal, but if the prospect of a double commission is the reason an
agent suggests a pocket listing to the client, then this could definitely
violate our Code of Ethics and MLS rules.
This issue really comes down to open markets and it would seem to
me that anything preventing free trade is a bad idea. In my opinion,
maximum marketplace competition is always in the best interest of
the client and anything that restricts such competition should be
questioned.
This Industry Insight was written by Renee Georgi, Realtor® with Northwood Realty Services.
As a full-time Realtor®, Renee assists both buyers and sellers with their real estate needs.
Renee and her husband Bruce have raised three children and have lived in the North Hills
for the past 25 years. For questions relating to real estate, contact Renee at 412.367.3200
x1226 or visit her website at www.reneegeorgi.com.
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