Learn how agents, teams, and brokerages use real estate pocket listings in low inventory markets to legally market properties before listings go active in the multiple listing service.
What are real estate pocket listings? And how can you use them to your advantage in these low inventory markets? Today we’re going to dive in on a somewhat controversial topic: pocket listings. They are usually frowned upon, except in a low inventory market, like the one we find ourselves in these days. This market has not been like this since 2004-2005, so unless you were practicing real estate back then, this is all new for you.
VIDEO: How to Use Real Estate Pocket Listings in Low Inventory Markets
What are real estate pocket listings?
Pocket listings are usually frowned upon, in general. However, things have changed a bit. We have new “coming soon” marketing rules. We aren’t allowed to market “coming soon” properties to the public. (Check your MLS rules because every MLS is different!) No more marketing of listings before they become active on the MLS.
One of the great things about being in a large office is that you can market “coming soon” listings within your own office or real estate team. Band together in a low-inventory market! Start your own private Facebook group for your office or team. In your Pre-Listing or Listing-to-Contract Checklist, add “put the listing into that Facebook group as a coming soon”. Just put the address, the bed/bath, the square footage, the price, and a photo. Help each other out. We must use these private Facebook groups to maximize the power of succeeding together.
What goes around comes around. You are giving “first dibs” to your real estate pocket listings to members of your office or team. Your fellow agents and teammates will return the favor! Imagine how much easier it will be to work with an agent in your own office or team, too. A low inventory market is the perfect environment in which to utilize this idea of pocket listings.
Objection handling for real estate pocket listings
Some people will object. “You’re doing a disservice to your clients because you aren’t making the listing public.” Oh no, you’ll make it public! Just get the agents in your office and on your team access first. I wouldn’t go under contract immediately — just give your people access to it a week or so before it goes live to the public. Still put it on the market to give other agents the chance.
There is a higher level of peer accountability when deals are done within your office or team. No one is concerned about not getting the highest price these days. In a low inventory market, this is a great way to work within your office or team and scratch each other’s backs. And, since you know these people a lot more personally than other agents, you can be assured that the deal is less likely to fall through.
This is an above board way to market pocket listings. You will not get into any trouble with your local MLS.
More value to your clients
It is a huge value add to your clients to market your pocket listings within your office or team. You can tell your clients, “Hey, before this goes public, I’m going to share with my office and generate some buzz before it hits the market.” The more offers you get, the higher above asking you can go. This is a huge benefit to your clients because you are going above and beyond to get them the most for their house.
When you CAN market “coming soon” listings
Marketing a listing as “coming soon”, per your local MLS rules, is very powerful. It generates a feeding frenzy and gets people excited. You also have the potential to get offers on the table before the listing goes live. This is a huge benefit to you and your clients.
Before you go forward with any of these ideas, please make sure to check with your local MLS rules. Every MLS is different and you should consult with your local rules before using these real estate pocket listing marketing techniques.
Once you are in the requisite status to be allowed to market “coming soon”, here are a few ways to market real estate pocket listings in the “coming soon” category:
- Email your sphere of influence (SOI)
- Market to the neighborhood
- Put up a yard sign: “COMING SOON”
- Facebook posts
- Virtual tours, live on social media
Need more help with pocket listings?
In this low inventory market, it’s easy to feel like your head is spinning. Be sure the watch the full video in this blog for more help with pocket listings and understanding the “coming soon” status. Beyond that, get an ICC coach in your corner for one-on-one support. Reach out today for a free consultation!