A lot of terms that may sound complicated and be unknown to you can be thrown around by real estate agents and other knowledgeable players in the real estate industry. These property terms do not always speak for themselves, so they can be confusing to home buyers and sellers. Just the same, the more you understand some of these real estate terms, the higher the chance at success in your subsequent real estate transaction. This list includes a pocket listing.
It's probably pretty obvious that the United States real estate industry came up with this term. When the seller and his or her real estate broker agrees to sign a contractual listing agreement, it comes into play. Either an Exclusive Right to Sell or Exclusive Agency contractual agreement can be created as a result. The result is that an MLS (multiple listing system) is not employed and limitations are imposed for a specific time period on the property's advertising, as agreed to by both parties involved.
At the beginning of the home selling process, a written listing agreement is executed to ensure mutual understanding, if a seller decides to hire a real estate broker. In the event that an Exclusive Right to Sell contract is agreed upon, the seller's property will not be listed in an MLS. While most brokers don't follow the terms of the agreement specifically in terms of opting not to share a portion of the total commission with other helping brokers, the agreement does, in fact, imply that a broker does not have to do this.
In the alternative, an Exclusive Agency contractual agreement delegates the right to sell the property exclusively to a sole broker. Consequently, another broker will never receive a compensation offer. The house is once again not listed in MLS in order to help it sell.
Reasons to want a pocket listing vary by seller. Sometimes the reasons are logical, such as when the seller feels the need to privacy or discretion in his or her real estate transaction. Other reasons are less noble, where the seller wishes to only sell the property to a certain type of person. In some instances, this could amount to discrimination. In any event, a pocket listing is an option to consider if you seek privacy in your real estate dealings and want to put your trust entirely in your real estate broker to ensure your home sells successfully.
It's probably pretty obvious that the United States real estate industry came up with this term. When the seller and his or her real estate broker agrees to sign a contractual listing agreement, it comes into play. Either an Exclusive Right to Sell or Exclusive Agency contractual agreement can be created as a result. The result is that an MLS (multiple listing system) is not employed and limitations are imposed for a specific time period on the property's advertising, as agreed to by both parties involved.
At the beginning of the home selling process, a written listing agreement is executed to ensure mutual understanding, if a seller decides to hire a real estate broker. In the event that an Exclusive Right to Sell contract is agreed upon, the seller's property will not be listed in an MLS. While most brokers don't follow the terms of the agreement specifically in terms of opting not to share a portion of the total commission with other helping brokers, the agreement does, in fact, imply that a broker does not have to do this.
In the alternative, an Exclusive Agency contractual agreement delegates the right to sell the property exclusively to a sole broker. Consequently, another broker will never receive a compensation offer. The house is once again not listed in MLS in order to help it sell.
Reasons to want a pocket listing vary by seller. Sometimes the reasons are logical, such as when the seller feels the need to privacy or discretion in his or her real estate transaction. Other reasons are less noble, where the seller wishes to only sell the property to a certain type of person. In some instances, this could amount to discrimination. In any event, a pocket listing is an option to consider if you seek privacy in your real estate dealings and want to put your trust entirely in your real estate broker to ensure your home sells successfully.
About the Author:
Looking for your dream home in Colorado, but can't decide if you want to buy real estate in Boulder Colorado or purchase Louisville real estate? You may consider letting a real estate agent help you in your property search.
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