You know the Orlando real estate market is strong when you start hearing the words “Pocket Listing” being spoken again. The term “pocket listing” refers to when a real estate broker has a listing agreement with a seller, but it isn’t advertised in the Multiple Listing Service or anywhere else. With pocket listings sometimes sellers may request for there to be a very limited amount of marketing for an agreed-upon amount of time.
Pocket listings are very popular with the “rich and famous” or just “rich”. Typically, high-end sellers don’t want hundreds of people walking through their houses. But with supply and demand being what it is in today’s Orlando real estate market, pocket listings aren’t just for well-to-do clients anymore. Because buyers are outnumbering the amount Orlando homes that are for sale by far, pocket listings are becoming a lot more common among more moderately-priced homes as well.
One of the problems in using the MLS in a hot market is over-exposure. I’ve had some of my clients complain of realtors knocking on their door wanting to show the house without even bothering to make an appointment, this can be extremely annoying to homeowners that live on the property. Some agents prefer pocket listings just to avoid the hassles of the MLS. It can be a nightmare getting a million phone calls a day for the same property. Other realtors push for pocket listings with the sole intention of securing both sides of the commission. Of course, these terms must be discussed and agreed upon by the seller beforehand.
A broker must explain exactly what a pocket listing is to the seller as well as fully inform the seller of the cons as well as the pros of pocket listings the broker could face legal allegations that they failed to enter the property in the MLS and caused the seller to have a limited ability to attract the highest and best price for their house. It could as lead to accusations of housing discrimination. In some cases, real estate agents try to convince sellers to use pocket listings so that they can secure both sides of the commission by representing both the buyer and the seller in the transaction. If an agent puts their own financial gain ahead of the seller’s it’s illegal and they run the risk of being prosecuted for it.
As an Orlando Realtor, I personally would never recommend pocket listings to sellers. It’s just common sense, if you limit the amount of exposure of something you’re trying to sell for top dollar, then you have a much less chance of getting the best price. Would you try and sell your car by not advertising it or only telling certain people? Of course not! I get the whole celebrity thing with pocket listings but thankfully I don’t have any celebrity clients and I’m free to market my listings to the fullest extent of my capabilities.
If need to sell an Orlando property fast and for top dollar, visit us at https://orlandorealtyconsultants.com or call 407-902-7750
Jenny Zamora, RE Broker
