Pocket Listings May Short-Change Sellers

The fast pace of Bay Area real estate, where homes are snapped up as soon as they hit the market, is fueling an interesting trend: pocket listings, homes not listed on a Multiple Listing Service (MLS), are on the rise. An off-MLS listing strategy may seem appealing on the surface – your agent sells your house quickly to a buyer he or she already knows about without having to inconvenience you with excessive showings. But sellers beware.

The MLS provides tremendous exposure for your home. Properties on the MLS are immediately available to nearly 200,000 real estate professionals throughout California and their clients. Plus, they are automatically shared with online consumer portals, like realtor.com, Redfin, and Zillow (unless you request otherwise). By limiting your property to your agent and a buyer he or she may have in mind, you’ll never know if you’re getting the most money possible in the sale. By limiting exposure of your home you’re also limiting the number of prospective buyers. In fact, MLSListings data shows that homes listed on the MLS sell for 30% higher, on average, than those sold off the MLS. Sometimes there are valid reasons for keeping a home off the MLS. If the seller is ill or a celebrity, it may make sense to restrict access to the home. If you’re concerned about maintaining some level of privacy, that is easily accommodated – even if your home is on the MLS. Have a frank conversation with your agent. There is absolutely a way to ensure your needs and concerns get addressed, while still getting top dollar for your home.