Ever wonder how properties sell without being put on the MLS listing system? It is what we call a pocket listing.

A good reason to have a pocket listing is because the seller will sell but is not necessarily ready to show.

Realtors sign a brokerage agreement, and write IN the agreement that it is not to be put on MLS until a later date. That way, they can start advertising it, start talking to people about it, and start showing it to people who really sound seriously interested... And the seller doesn't have to worry about showing the property while concrete is being poured or a room is being repainted, security reasons, cleaning up a tenant trashed rental, carpeting, paint, appliances, even trees being replaced, etc etc.

Another big issue is security. Some people are very uneasy about letting the general public accessing their property.

This is why there are some situations where the seller's interests are being promoted with a "pocket" listing. Obviously the intent is to get it into the MLS as soon as possible, but also, you can sell it before it is show-ready to the general public. And even during a pocket period Realtors can co-op!

Some Realtors start advertising it and telling other agents about it, but the seller just doesn't want to make it show-ready every day yet. Realtors have properties that they know of that for many reasons they don't get listed right away. Some are because clients are on the fence to listing because they are not sure if the market timing is right. Others are in the middle of refinancing, business credit analysis, tax holding requirements (need to wait till time passes in order to invoke certain tax saving laws) or in the middle of the school year for their kids.

Another and upcoming popular type of "pocket listing" is the "discreet" sale. It usually involves a multi million dollar professional executive or celebrity or professional athlete sale. This type of client does not want people going through their house or having anyone know they are selling. They want the sale done with discreetness and utmost secrecy. For these reasons and more Realtors have several clients that, if given an offer,would sell their house.

One example is a celebrity that was interested in selling a portion of her land but wasn't interested enough to put it on the MLS. It's hard enough maintaining a private lifestyle as a celebrity without having lookey-loos around your property (and yes, I know you can pre-qualify buyers to view, but the MLS is still viewable by anyone). Anyway, there's enough people looking for land around here that it isn't always necessary to put something on the MLS. She wasn't in a hurry, and it's getting sold regardless.

How does a Realtor get them or hear about them? One place is weekly MLS meetings held throughout the county. Realtors have people come up to them and talk about their property that they aren't sure if they should list yet or not. Some have quite a few people that just don't want to bothered by the other side of listing their property. They would rather have an agent that has other listings in the area that could discreetly promote their property.

This means that agents have these "pocket listings" for properties that they know are deals or competitively priced and exactly what you are looking for but are not listed and when or if they do it will be too late unless you connect with those in the know.