To grasp how a pocket listing functions, it’s essential to first understand the typical process of listing a home. Real estate agents rely on a shared system known as the Multiple Listing Service (MLS), which serves as a comprehensive database for all homes available for sale across the nation. When a property is listed for sale, its details are entered into the MLS, making it accessible to all agents.
Third-party websites then pull data from the MLS to display homes for the public, allowing anyone to view and share these listings. If you’re working with a real estate agent, you might even gain direct access to the MLS. Essentially, the MLS acts as a bulletin board that broadcasts available properties to a wide audience, aiming to connect sellers with the most potential buyers.
However, a pocket listing takes a different approach. “A pocket listing is a property that isn’t entered into the Multiple Listing Service,” explains Cindy Raney, a global luxury property specialist and founder of Connecticut-based Cindy Raney & Team. “The agent representing the property has the discretion, with the seller’s guidance, to share the listing with a select few rather than with the broader public.”
In a pocket listing scenario, the traditional MLS system is bypassed in favor of a more private sales process. Instead of broadcasting the property details widely, the agent may choose to share the information with a limited group of colleagues and prospective buyers.
As broker David Sokolowski of Coldwell Banker Warburg notes, “A pocket listing is not made publicly available on consumer-facing platforms like StreetEasy, Zillow, or Realtor.com. Instead, agents typically share these listings with their network or through targeted social media or email campaigns.”
So, why might a seller opt for a pocket listing? The primary reasons are to avoid the competitive frenzy of a public market and to maintain privacy. “For certain price points or sellers with specific needs, privacy is a key concern,” says Alana Lindsay of Coldwell Banker Warburg. “Pocket listings allow sellers to keep the sale discreet, shielding them from journalists, nosy neighbors, and even family members who might pry into the details of the sale or the home’s features. The sale remains under the radar until it’s finalized and recorded in public records.”
Sokolowski adds that pocket listings are particularly common in scenarios where sellers wish to avoid unsettling tenants. “For commercial or tenant-occupied properties, sellers often don’t want tenants to know the property is on the market. They fear that tenants might react negatively, possibly withholding rent or causing other issues.”
For buyers, pocket listings carry a certain mystique and allure, offering a sense of exclusivity. Buyers who get access to a pocket listing are typically more serious and have the advantage of seeing inventory before it’s available to the general public.
