Real estate investors talk about pocket listings, here’s the deal…
If you’ve ever talked to a real estate agent or investor, they’ve probably mentioned off-market deals or “pocket listings.” Many investors and buyers hope to buy a property off-market. They’re constantly looking for connections that will get them access to these exclusive real estate deals. But what is a pocket listing?
What is a pocket listing and is it the same as an off-market listing?
In simple terms, a pocket listing is a property that is not advertised on the multiple listing service (MLS). These can also be called “off-market listings” or “unlisted deals.” They’re often handled by a single realtor or seller and not advertised to the wider public.
Imagine the difference between searching online job boards for opportunities and getting hired by knowing someone at the company. This is kind of how pocket listings work. Because the property is not advertised to networks of agents or the general public, they’re considered off-market.
Some buyer’s agents don’t like off-market listings because they cut out agent networks. When a seller makes a deal off the MLS, home buyers using a buyer’s agent will likely never see the property. The more homes that are sold off-market, the fewer options buyer’s agents have for their clients.
In addition, some agents believe pocket listings cause local market price data to become inaccurate. This is because unlisted sales aren’t recorded in the local comps.
Why do buyers want off-market deals?
There are several reasons home sellers, buyers, or investors might want a pocket listing.
- Unlisted deals offer more privacy
- There is less buyer competition driving up prices
- Pocket listings can reveal interest and price
- A house can sometimes be sold faster off-market
For investors and homebuyers, pocket listings are attractive because they’re less competitive. If you know where to find them, you won’t have to bid against as many people.
Too often, when homebuyers search for houses listed online, by the time they make an offer, it’s already sold!
In addition, investors can sometimes get off-market deals for less money because there are fewer steps. Lower competition and negotiating a lower commission fee for the agent can also decrease the final cost.
Sellers, on the other hand, like pocket listings because they offer privacy if they want to sell discreetly. It can also help sellers gauge potential interest and avoid price reductions if it sits on the MLS too long.
How can you find and buy a pocket listing in Sevierville?
For buyers, one of the downsides of pocket listings is that they’re hard to find! Because they’re not public, you have to know someone to even be aware of unlisted deals.
So, if you’re looking to buy a house in East Tennessee where can you find off-market listings?
A good place to start is our exclusive website for unlisted properties. If you want to see incredible deals that other buyers aren’t aware of, call us today at 865-365-1670.
Another great way to find pocket listings is to expand your network and make connections. If you know investors and realtors who regularly buy and sell homes, you’ll hear about more unlisted deals.
