What Is a Pocket Listing? An Unlisted Home for Sale

A pocket listing is a home that's for sale but isn't publicly listed. A real estate agent shows the home to potential buyers privately rather than immediately putting it on the public-facing Multiple Listing Service, or MLS.

A pocket listing is not the same as a "coming soon" listing. "Coming soon" is simply a designation that a home is not yet listed but will be on the market in the near future.

Here are some answers to common questions about pocket listings.

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Is a pocket listing illegal?

Pocket listings are not illegal, but they're certainly frowned upon. The National Association of Realtors, which is the largest professional organization for real estate agents in America, effectively banned pocket listings in 2019. According to the NAR handbook, "Within one business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS participants."

The NAR cracked down on pocket listings in order to ensure cooperation among real estate agents (making all agents' listings widely available) and fuel competition (giving all buyers a chance at a listing and sellers the opportunity to get the best price).

However, some agents bend the rules in order to comply with NAR guidelines but still keep a listing to themselves. NAR policy says that listings must be added to the MLS within one business day of signing the listing contract with the seller. If the seller signs with a listing agent on a Friday, the agent can take advantage of the weekend to have as much as 72 hours to privately market the property.

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Why do buyers seek pocket listings?

In a hot real estate market with limited inventory, buyers might try to find pocket listings simply to get an edge on the competition. By making an offer before other buyers even know a property is for sale, some buyers think they have a better chance at getting an offer accepted.

If you're seeking a pocket listing by communicating directly with a listing agent, remember that the agent represents the seller, not you. That agent's job is to get the highest price possible from buyers.

While a pocket listing might let you "jump the line" in a crowded seller's market, it's unlikely to get you a discount. A pocket listing seller may be motivated by the idea of less hassle (getting to skip showings, for example), but in a hot market they will likely still expect top dollar.

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