Definition of Pocket Listings:
Orange County Pocket Listings:
A "Pocket listing" is slang for a listing that is not listed on the Orange County MLS. However, pocket listings have many different meanings and interpretations. Sometimes, a listing is merely referred to as a "pocket listing" in the short time between when it is secured by the sellers' agent and the time it appears on the MLS. A listing can sell before the broker completes OCAR MLS paperwork, which would mean the listing sold to someone who knew about the listing outside of the MLS, be it to a friend of the seller, a buyer known by the listing agent, or a colleague of the listing agent. Sometimes, this happens with an offer made during a "prelisting" period.
Sometimes that homeowners want to sell the homes on their own and they might as their REALTOR® to not list their property on the MLS to keep the news of the sale private. In this case, sellers are selecting a pocket listing more as a marketing choice than anything else. REALTORS® are bound by the Code of Ethics to get the best deal for their client and sellers should be cautioned that restricting a large pool of eligible buyers from knowledge of the sale might reduce the final sale price.
The National Association of REALTORS® has not defined what constitutes a pocket listing, nor do they have an official policy regarding the practice. However, there are objections to some of the ways these so-called "pocket listings" are used by some real estate professionals. Some practitioners argue that these pocket listing violate local Orange County MLS rules and others argue that keeping properties from the MLS will skew comparable sales listing numbers for appraisers.