Pocket Listings in Real Estate: Should You Use One?

Selling a home today is more than just putting a sign in the yard and uploading photos. With more technology, competition, and complexity than ever in the real estate industry, sellers are constantly exploring new strategies to gain an edge.

One such polarizing strategy is pocket listing. Also known as an off-market or exclusive listing, pocket listings are properties for sale that are quietly marketed without ever appearing on the multiple listing service (MLS).

In other words, the agent in charge of selling a pocket listing is keeping the property in their “back pocket” and only sharing it with certain people in their network. There are many reasons why a seller might choose this route. In this article, we’ll cover all the basics of a pocket listing, and share advantages and disadvantages.

How does a pocket listing work?

Pocket listings operate outside the traditional listing system by leveraging private marketing strategies instead of public advertising. Here’s a breakdown of how the process typically unfolds:

• The seller signs an exclusive listing agreement with a real estate agent or brokerage. This gives the agent full authority to represent the property, but without the obligation to post it to the MLS.
• The property is intentionally withheld from public marketing. It doesn’t appear on the MLS, real estate portals, or agent-wide databases. There’s no public signage, listing photos, or mass advertising.
• The agent markets the home through controlled, off-market channels, such as personal phone calls, one-on-one emails to trusted contacts, internal brokerage communication systems, curated buyer lists, high-net-worth client databases, and private agent-only platforms.
• Only qualified, pre-vetted buyers are informed of the property’s availability. These are typically cash-ready or lender-approved individuals who fit the seller’s criteria, minimizing casual showings and unqualified offers.
• If the property doesn’t sell privately, the seller may choose to pivot to a public strategy, listing the home on the MLS for wider exposure.

This approach allows the seller and agent to retain control over timing, exposure, and negotiations, making it attractive in niche markets or situations requiring discretion.

Why would a seller choose a pocket listing over the MLS?

There are several reasons a seller might prefer to stay off the grid and surprisingly, it’s not just celebrities looking to dodge paparazzi.

1. Privacy and control

The most common reason is privacy. Sellers who value discretion, such as high-net-worth individuals, public figures, or people navigating sensitive situations (like a divorce or death in the family), may not want their personal space broadcast online. With a pocket listing, they can control who sees the home, when showings happen, and how negotiations unfold, with minimal disruption.

2. Testing pricing before going public

Pocket listings also allow sellers to “test the waters.” If they’re unsure about the listing price or market timing, they can privately float the property to a select group of buyers. Based on feedback, they can adjust pricing or staging before committing to a full MLS launch. This soft-launch approach is helpful in unpredictable or cooling markets where mispricing can lead to long listing times and price cuts.

3. Avoiding days-on-market pressure

MLS listings come with a visible timer: “Days on market.” The longer a home lingers, the more likely buyers are to assume something’s wrong even if it’s just overpriced by 1-2%. Pocket listings sidestep that clock entirely, allowing sellers to avoid the “stale listing” effect.

4. Targeting specific buyers

Sometimes, sellers know their buyer isn’t the average Sunday open-house shopper. Pocket listings allow agents to target luxury investors, developers, or cash buyers who are looking for off-market deals, often through private broker channels or proptech tools.

What are the risks and disadvantages of pocket listings?

Pocket listings might sound like a dream scenario, but they’re not without serious drawbacks; some strategic, some ethical, and some legal.

1. Limited exposure = Lower demand

The biggest trade-off is visibility. By keeping the listing off the MLS, sellers dramatically reduce the number of people who see the property. That means fewer showings, fewer offers, and usually less leverage. In a public listing, buyers might compete. In a pocket listing, there may only be one.

2. Potentially lower sale price

Fewer buyers often means fewer (or no) bidding wars. While some exclusive listings still sell for top dollar, homes listed publicly sell for more, simply due to increased competition. According to Zillow, sellers who avoided the MLS earned about $4,975 less per home. For many sellers, that’s a costly trade-off for staying private.

3. Ethical and fair housing concerns

Pocket listings have been criticized for perpetuating inequality. Since they rely on exclusive networks, not every buyer has the same chance of learning about them, especially first-time buyers or members of historically marginalized communities.  This lack of equal access led to increased scrutiny from the Department of Justice and contributed to the creation of NAR’s Clear Cooperation Policy.

4. Inaccurate market data

Because pocket listings aren’t recorded in MLS systems, they don’t show up in comparable sales (“comps”) used by appraisers, agents, and future sellers. Over time, this can distort market valuations, particularly in neighborhoods where pocket listings are common.

How can buyers access pocket listings?

If you're a buyer hoping to tap into the off-market inventory, you’ll need more than Zillow alerts. Here’s how savvy buyers find pocket listings:

• Work with a well-connected agent. The key is having a real estate agent who’s plugged into private broker groups and agent-only platforms. Some agents also subscribe to invite-only networks, which list exclusive deals.
  
  Let your agent know you’re ready. Pocket listings move fast. Sellers want serious, pre-approved buyers who can close quickly. Make sure your agent knows your budget, location, and timeline, and that you’re ready to write when the opportunity arises.
• Ask the right questions. Not all pocket listings are “deals.” In fact, some are overpriced or being shopped quietly because they wouldn’t perform well on the open market. Always ask: Why is this listing off-market? Are there recent comps that justify the price? How long has the seller been trying to sell?
• Consider the pros and cons. Exclusivity may sound appealing, but don’t skip your due diligence. Compare it to MLS-listed homes in the same area and price range. Just because it’s off-market doesn’t mean it’s automatically a better value.

When is pocket listing the right strategy for sellers?

Not every seller benefits from a pocket listing. But in certain scenarios, it makes strategic sense. Use this decision guide:

A good listing agent should help you weigh the pros and cons based on your goals, timeline, and market conditions.

How is technology changing pocket listings?

In the past, pocket listings lived entirely in the shadows of an agent’s contact list, traded through backchannel phone calls, closed-door meetings, and personal favors. But as real estate becomes increasingly digitized, technology is bringing structure, scale, and strategy to the off-market world.

• Agent-only marketplaces: Platforms like Top Agent Network and brokerage-exclusive systems let agents share pocket listings in structured, semi-private ways. These platforms help maintain exclusivity while improving access among professionals.
• AI matching tools: Artificial intelligence is helping agents identify high-potential buyers by analyzing patterns such as search behavior, preferences, and past inquiries. While pocket listings remain private, AI can surface likely matches within an agent’s network, enabling faster and more targeted outreach without broad public exposure.
• Data visibility and smart tracking: Brokerages can analyze performance data from pocket listings to better predict pricing, time-to-sell, and buyer interest. That helps agents and sellers refine their strategy before going public.

Frequently asked questions about pocket listing

Got more questions? We have the answers.

Q1. Are pocket listings legal in the U.S.?

Yes, but with limits. Pocket listings are allowed, as long as the agent doesn't market the property publicly. If they do, NAR's Clear Cooperation Policy requires them to list it on the MLS within one business day.

Q2. Is it harder for buyers to find pocket listings?

Yes. Since they aren’t on public platforms, pocket listings are usually shared through agent networks or private channels. Working with a well-connected agent is the key.

Q3. Can a pocket listing ever be advertised publicly?

No, not without triggering MLS rules. Even a social media post or email blast counts as public marketing and requires the property to be listed on the MLS within one business day.

Q4. Do pocket listings violate fair housing laws?

Not inherently, but they can raise concerns. Limiting who sees a listing can unintentionally exclude certain buyers, which is why transparency and compliance are essential.

Q5. Can a property start as a pocket listing and go public later?

Yes. Many agents use a pocket phase to test pricing or interest, then transition the home to the MLS if it doesn’t sell privately.

Is a pocket listing the right move?

Pocket listings offer a unique mix of control, privacy, and targeted strategy, but they’re not for everyone. While they can be smart in the right situations, they also come with real trade-offs: limited exposure, fewer offers, and potential price disadvantages.

If you’re a seller, the key is knowing what you value most: discretion or demand, speed or scale. And if you’re a buyer, gaining access means being proactive, working with well-connected agents, and staying sharp on market trends.

Ultimately, pocket listings aren’t a shortcut; they’re a strategy. One that works best when paired with clear goals, solid guidance, and a full understanding of the risks and rewards.

Want to make pocket listings work for you? Learn how top agents build buyer pipelines in our article on how to generate real estate leads.

This article was originally published in 2019. It has been updated with new information.