What is a pocket list?

When you decide to sell your home and close the contract One of the first things your agent will do is list your home . The MLS is a database of homes for sale where agents share listings with each other. These listings are then widely shared to real estate search sites, including where buyers can view available homes for sale.

But what if you don't want your listing published on the MLS? In this case, you may decide to sell your home as a pocket listing.

So what is a pocket list? Let's discover how pocket listings work, the pros and cons for buyers and sellers, and the latest discussions around Clear Cooperation.

What is a pocket list?

A (aka “whisper listing” or “office exclusive”) is a property for sale that is not listed on the MLS. Instead, the agent “pockets” the listings, offering them privately to select buyers or agents in their network. These listings are considered “off-market” and are not sold to the general public.

This method can provide privacy for the seller, but limits exposure to potential buyers, among other disadvantages.

Encouraged by pocket lists under them (CCP), applies to all NAR-owned MLSs. Most MLSs also require brokers to submit listings to the MLS immediately after the seller signs a listing agreement. However, there are some cases where pocket lists are allowed.

How Pocket List Works

When a seller hires a real estate agent to list and sell a property, they usually sign a contract committing them to work together. . The agent will then list the property on the MLS and begin marketing it. According to NAR's Clear Partnership Policy, an agent must list their client's property within one business day of starting to put it up for public sale. This is to encourage cooperation between the seller and their agent and the buyer and their agent.

However, with a pocket listing, the agent keeps the property off the MLS and does not publicly market it, limiting exposure to buyers within the agent and seller networks. This approach bypasses the wider market and is usually reserved for special cases such as divorces and deaths in the family. Ultra high net worth individuals and public figures may also prefer pocket listings to maintain privacy and exclusivity.

Pros and cons of pocket listings for buyers and sellers

Here are some important pros and cons of pocket lists to keep in mind.

Pros:

• Select buyers gain access to exclusive properties, giving them a competitive edge.
• Sellers have strict privacy and control over who views their homes, which can be attractive for high-profile or luxury properties.
• Fewer people walk through the seller's home, which limits the disruption to their schedule.

Cons:

• Buyers lose access to a wider market, limiting their ability to compare properties and creating inequality.
• Sellers face fewer offers and reduced visibility, potentially leading to lower sales prices.
• Pocket lists ax by restricting access, favoring those with connections and reducing confidence in the real estate market.

Are pocket listings legal?

Pocket listings are legal, but MLS-affiliated agents are subject to their MLS . Sellers who want privacy in their sales can choose to have their home listed on the MLS for other agents to see, to real estate sites (although not all MLSs allow this). A seller can also direct their agent to make the listing “office exclusive,” where the agent can only share the listing with other agents at the same brokerage.

In short, agents and REALTORS® can still use pocket listings, but Clear Cooperation stipulates that they cannot publicly market the property without adding it to the MLS (i.e. on social media, yard signs, or via email). Sharing with other agents is permitted within the brokerage. As a result, this benefits large non-franchise brokers as they can share with a wider agent network.

Pocket listings are more common in competitive markets or for where discretion matters. This is because it allows sellers to control who views their home and can reduce public foot traffic or speculative buyers. However, limited exposure can limit the pool of potential buyers, research suggests, affecting the sale price or timeline.

National Association of Realtors pocket lists at the end of 2019 as part of the Aydin Cooperation Policy, which aims to promote improve data quality and enhance collaboration. Note that the policy still allows private, unlisted properties (pocket listings) in some cases, such as when sellers request privacy.

What is Clear Cooperation in real estate?

Clear Cooperation is a policy created by NMR in 2019 to limit the use of pocket lists and promote equal access to housing.

Clear Cooperation requires real estate agents to submit a listing to the MLS within one business day of a property's public sale. This ensures equal access to available listings for all buyers, regardless of their affiliation, promoting fairness and transparency in the housing market. The policy aims to limit pocket lists This can limit access to certain properties and ultimately compromise fair housing.

Although the policy is intended to create a more open and cooperative market, it has faced criticism that it limits sellers' choices and may not always serve their best interests. It also comes with a breach of Open Collaboration . Now after the change of industry there is to subvert it.

Pocket list disputes

There were pocket lists has been growing recently, but slowly in particular . The industry took notice and NAR effectively banned the practice in 2019 through its Clear Collaboration Policy.

However, after industrial scale settlement of NMR and Opponents of Clear Cooperation, which took effect in late August, question this. Some said it was others say that it is a and to act in the best interests of the agents' clients. Some opponents say their campaign is to save the industry from another antitrust lawsuit — now going through the courts.

Redfin supports Clear Cooperation

Redfin believes that Clear Cooperation is the foundation for a fair, collaborative, equitable housing market where everyone can find the home of their dreams. We believe that Aydın Cooperation is coming to an end – and harmful to consumers, agents and fair housing. This is another way to devalue MLS and give power to the biggest players who can build their inventory.

Redfin CEO Glenn Kelman said this in his speech : “If the Clear Cooperation policy is repealed, agents may feel pressured to join larger brokers, even if it means accepting lower commission splits to ensure their clients have access to all available listings. “When a single company dominates the market, smaller brokers find it difficult to compete.”

At worst, ending Clear Cooperation could return us to an exclusionary past. It found that the buyers most likely to lose access to pocket listings were buyers of color, violating basic principles of fair housing. This is the main reason for this The passage of Clear Cooperation in 2019, when pocket lists are on the rise.

The Clear Cooperation is airtight and has some noticeable gaps. Agents at the same brokerage are allowed to share personal listings with each other while keeping those listings from other brokerages. But a policy with loopholes is better than no policy at all.

Other supporters of Clear Cooperation include industry leaders eXp Realty and Zillow. They agree that Aydın Cooperation will be terminated and in real estate professionals.

Pocket lists: what's next?

Pocket listings have been a part of the real estate industry for decades, but have recently come into the limelight. While they can provide privacy and exclusivity, they also raise concerns about fairness, transparency, and limited market access.

Clear Cooperation seeks to balance these concerns, but the future of pocket listings remains a topic of debate within the industry.

Redfin has supported an open market and will continue to advocate for more transparency, better deals and equal access to listings for consumers. We believe that fair housing is fundamental to a thriving and equitable society, and ending Clear Cooperation threatens these ideals.