What You Should Know About Pocket Listings - Westminster, CO
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 in Westminster, Colorado and surrounding areas. 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.
There are a myriad of different reasons a seller might choose a pocket listing. It makes sense for some sellers to want to ensure privacy or discretion in the sale of their house. And other times, like when the seller is trying to cherry pick the type of person to whom he or she sells her property, the reason can be less noble. Sometimes this even adds up to discrimination. Whatever the reason, a pocket listing is an effective way to ensure privacy throughout the entire transaction, while putting trust wholly in the real estate agent to obtain a successful sale.
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