Encountering your dream home only to find it’s embroiled in a bidding war can be incredibly disheartening. With elevated mortgage rates and limited inventory, the competition within the housing market intensifies constantly.

For those in pursuit of a new home and feeling overwhelmed by the fast-paced market, there’s a valuable avenue to explore: pocket listings.

What Exactly Is a Pocket Listing?

A “pocket listing”—often referred to as an “off-market listing”—is a property that is available for sale but isn’t advertised on the Multiple Listing Service (MLS). Although real estate professionals are actively marketing the property, it remains somewhat hidden, making it challenging for prospective buyers to discover through traditional searches. This situation typically arises for two main reasons: first, a seller may prefer to keep their listing private for personal reasons and thus opts out of MLS; second, agents may want to sell the property directly to buyers in their network, either because they believe it’s a perfect match for a specific client or because bypassing another agent could yield a higher commission.

While pocket listings are legal, the practice has stirred up some debate in the real estate industry. The National Association of Realtors (NAR) introduced a guideline in 2019 requiring agents to list properties on the MLS within one business day of any public marketing. However, realtors can still promote properties to other agents or potential buyers directly without listing them on the MLS, allowing the pocket listing phenomenon to persist—agents often utilize clever strategies to adhere to NAR regulations while still reaping the benefits of pocket listings.

This unique situation means there exists a limited yet essential assortment of homes that might not be discovered through online searches or even via agents who primarily access the MLS. Uncovering these listings not only provides the opportunity to submit an offer ahead of the wave of interested buyers but also enhances the likelihood of securing that cherished home before the frenzy begins.

Strategies for Locating Pocket Listings

Uncovering pocket listings may require extra initiative, but for those navigating a competitive market with specific location preferences, the effort can yield significant rewards.

• Engage with Local Agents: Building connections with real estate agents in your desired area can be crucial. Reach out to regional agents to inquire about exclusive or off-market properties that could fit your criteria.

• Utilize Online Tools: Platforms such as Zillow feature a “coming soon” section where agents can post off-market listings up to 30 days before they hit the MLS. This is a strategic method for generating interest while providing you with the chance to make an early inquiry.

• Explore FSBO Listings: Websites like Zillow host sections for For Sale By Owner (FSBO) properties, allowing homeowners to sell independently. These listings represent off-market opportunities, even in the absence of real estate agents, often appearing on platforms like Craigslist and For Sale By Owner.

• Network with Homeowners: Lastly, consider engaging with residents in your preferred neighborhood to find out if they or anyone they know is contemplating selling. While this approach may be less efficient, it could lead to unexpected leads or opportunities.