Pocket listings are properties that are not publicly advertised on the multiple listing service (MLS) or other platforms. They are often sold through word-of-mouth, referrals, or private networks of agents and buyers. Pocket listings can offer benefits to both sellers and buyers, such as privacy, exclusivity, and flexibility. However, they also pose some challenges, such as limited exposure, legal risks, and ethical dilemmas.
How can you market pocket listings effectively and ethically? What are the best practices and strategies to attract qualified buyers and close deals faster? In this article, we will reveal the secret sauce to marketing pocket listings, based on the insights and experiences of successful real estate agents and experts.
What are the advantages of pocket listings?
Pocket listings can be a great option for sellers who want to sell their property discreetly, without attracting unwanted attention or competition. Some of the reasons why sellers may prefer pocket listings are:
- Privacy: Some sellers may not want to disclose their personal or financial situation, such as divorce, bankruptcy, or relocation. They may also want to avoid the hassle of staging, showing, and negotiating with multiple buyers.
- Exclusivity: Some sellers may have a unique or high-end property that they want to market to a select group of buyers who can appreciate and afford it. They may also want to create a sense of scarcity and urgency among potential buyers.
- Flexibility: Some sellers may not be ready to commit to a listing agreement or a specific price. They may want to test the market, see what offers they can get, and adjust their expectations accordingly.
Pocket listings can also benefit buyers who are looking for off-market opportunities that match their criteria and budget. Some of the reasons why buyers may seek pocket listings are:
- Access: Some buyers may have access to exclusive networks or agents who can connect them with pocket listings that are not available to the general public. They may also have a competitive edge over other buyers who rely on the MLS or online platforms.
- Savings: Some buyers may be able to negotiate a better price or terms with the seller, since there is less competition and commission involved. They may also save time and energy by avoiding bidding wars and multiple offers.
- Satisfaction: Some buyers may find their dream home or investment property that meets their needs and preferences. They may also enjoy the thrill and excitement of discovering a hidden gem.
What are the disadvantages of pocket listings?
Pocket listings are not without drawbacks, however. They can also present some challenges and risks to both sellers and buyers, such as:
- Limited exposure: Pocket listings may not reach the widest possible audience of potential buyers, which may result in lower demand and offers. They may also miss out on the benefits of the MLS, such as data, analytics, and syndication.
- Legal risks: Pocket listings may violate the fiduciary duty of the agent to the seller, which requires them to act in the best interest of the client and market the property to the highest possible standard. They may also breach the fair housing laws, which prohibit discrimination based on race, color, religion, sex, national origin, disability, or familial status.
- Ethical dilemmas: Pocket listings may create conflicts of interest or incentives for the agent to double-end the deal, which means representing both the seller and the buyer and earning the full commission. They may also undermine the trust and cooperation among agents and the public.
How to market pocket listings effectively and ethically?
Given the pros and cons of pocket listings, how can you market them in a way that maximizes the benefits and minimizes the risks? Here are some tips and best practices to follow:
- Know the rules and regulations: Before you engage in pocket listings, make sure you are familiar with the local and national rules and regulations that govern them. For example, the National Association of Realtors (NAR) has adopted a new policy, effective from May 1, 2020, that requires agents to submit their listings to the MLS within one business day of marketing them to the public. The policy aims to promote transparency and fairness in the real estate industry.
- Understand the client’s goals and expectations: Before you agree to a pocket listing, make sure you understand the client’s motivation and objective for selling or buying the property. Explain the advantages and disadvantages of pocket listings, and advise them on the best course of action. If the client decides to proceed with a pocket listing, make sure you have a written agreement that outlines the terms and conditions of the arrangement, such as the duration, price, commission, and marketing strategy.
- Leverage your network and relationships: The key to marketing pocket listings is to tap into your existing network and relationships of agents, buyers, and influencers who may be interested in or know someone who may be interested in the property. You can use various channels and methods to communicate with them, such as phone calls, emails, texts, social media, newsletters, flyers, or postcards. You can also join or create private groups or platforms that are dedicated to sharing and finding pocket listings, such as Top Agent Network, PocketList, or Whisper Listings.
- Be creative and strategic: Besides using your network and relationships, you can also use other creative and strategic ways to market pocket listings, such as:
- Create a teaser campaign: You can create a teaser campaign that generates curiosity and interest among potential buyers, without revealing too much information about the property. You can use catchy headlines, intriguing photos, or vague descriptions to pique their attention and entice them to contact you for more details.
- Host a private event: You can host a private event that showcases the property to a select group of buyers who are pre-screened and pre-qualified. You can make the event exclusive, intimate, and memorable by providing food, drinks, entertainment, or giveaways. You can also invite other agents, influencers, or media who can help spread the word about the property.
- Use targeted advertising: You can use targeted advertising that reaches the specific audience or demographic that is most likely to be interested in the property. You can use online platforms, such as Facebook, Instagram, or Google, or offline platforms, such as newspapers, magazines, or billboards, to deliver your message and call to action.
Conclusion
Pocket listings are a unique and alternative way of selling or buying properties that are not publicly advertised on the MLS or other platforms. They can offer benefits to both sellers and buyers, such as privacy, exclusivity, and flexibility, but they can also pose challenges and risks, such as limited exposure, legal risks, and ethical dilemmas.
To market pocket listings effectively and ethically, you need to know the rules and regulations, understand the client’s goals and expectations, leverage your network and relationships, and be creative and strategic. By following these tips and best practices, you can reveal the secret sauce to marketing pocket listings and achieve the best possible outcome for your client and yourself.
