Pros and Cons of Pocket Listings
Pocket listings are the latest trend in the world of real estate. These listings are used to gain maximum profit in a given amount of time. It is a an agreement between the real estate professional and a seller that allows the seller to place their property for sale at multiple listing services without adding personal information. We have listed some pros and cons of these listings to help you decide better.
The Pros of using pocket listings:
1. Secrecy:
The prime advantage of using pocket listings is privacy. If you are not fond of the idea of people coming and going by your property, then this is for you. These listings are also preferred by people who are low key investors and don’t want their identity to be revealed to the people around the area. Many people who have been struck by grief also go down this path to sell their property.
2. Swiftness
if your client want their property sold as soon as possible without compromising on it’s price, then this is their ticket out. As this system allows the property to bypass the multiple listing services, the swiftness of the sale becomes astonishing, if your client wants instant cash flow going on for them, then you should recommend using pocket listings, so that they get what they want.
3. Cost
Because these properties are listed in defined markets, the price offered on them is always fair. Secondly, seller can negotiate the commission when MLS is removed from the transaction.
The Cons of using pocket listings:
1. Exposure
Pocket listings can only benefit your client if they know about the local markets. Giving a limited and focused exposure to a property can result in lesser buyers. Because of this less exposure, the property might stay listed for a while. Similarly, many buyers still prefer MLS.
2. Competition
Having less competition is good, but in this case, it can be harmful for your listing. Because of less competition, the selling price might get reduced. If there is a pool of similar properties in the picket listing, then your client will get a better response and selling price.
3. Fair Housing Violations
It needs to be said that screening legitimate buyers might result in consequences. Using pocket listings as a medium of selling one’s property can result in the violation of the Fair Housing Law. Therefore, you should inform your pocket listings’ clients that they should do their best to remain impartial.