“Pocket listing” is for buyers and sellers that do not want to list or find their homes on a multiple listing service (MLS). Listing your home on the broker’s “network” or hearing about a home for sale by “word of mouth” instead of MLS may seem like a good way to go. But InManNews explains that there are some things that you should be wary of if you’re choosing to go with pocket listing.
- The home might sell for less than market value. MLS ensures that your home is targeted to the maximum number of potential buyers.
- You may think you’re saving on agent commissions, but there could still be clauses regarding fees.
- MLS is the best way to market your home. Social media may help in getting the word out there, but the only people that are searching MLS are buyers.
- Competition between buyers is good. Repairs and other problems may not seem like a deal breaker when negotiating between multiple buyers. There won’t be much competition with pocket listing, so you might be responsible for these issues in order to get a better price.
- Who represents you? You’ll need an agent behind you to make sure commission is split and covered correctly.
- How do you know if the price is accurate? You are in charge of doing research to make sure you’re getting a good deal.
- Stipulations, parameters, time frame, and escape clauses are also up in the air. Who is writing your offer?
- When you initiate the contact, the seller knows they have something that you want. This puts you in a weaker position disabling your ability to negotiate.
A version of this post originally appeared on InManNews, Hank Miller real estate expert.