What is a pocket listing?

A pocket listing is a property that’s for sale but isn’t publicly advertised through the multiple listing service (MLS). For sellers who value privacy over publicly sharing that their property is for sale, this can be a good strategy. The home is shared only through a network of agents or select buyers.

Let’s walk through how pocket listings work, who they’re best suited for, and what to consider before going off-market.

The meaning of pocket listing

A pocket listing is a home that’s for sale, but it’s not publicly listed on the MLS. Instead, the seller’s agent shares the property privately with a limited group, often through personal networks, office contacts, or select clients.

You might hear these called off-market listings, quiet listings, or exclusive listings. While they can offer strategic advantages for certain sellers, they’re not very common. According to Redfin.com, between 2019 and 2021, the number of pocket listings increased from 2.4% to 4%, which represents an increase of 67%. In some markets, it’s been reported that as many as 10% of listings held by large brokerages may be pocket listings.

How pocket listings work

Unlike traditional home sales, pocket listings aren’t shared with the public. Instead of being posted on the MLS, these homes are quietly marketed through the agent’s personal network, often by word of mouth, email, or direct outreach to trusted contacts. In many cases, only a small group of buyers even know the property is available.

The listing is typically handled by a single listing agent who manages all inquiries and showings. That agent may share the property with colleagues in their brokerage, high-profile clients, or buyers with specific needs.

Pocket listing example

For celebrities, public figures, or high-net-worth individuals, a pocket listing can offer the privacy that a traditional sale simply cannot provide.

For example, Jay-Z and Beyonce quietly purchased a $200 million mansion in Malibu in 2023, reportedly through a pocket listing. Because the home wasn’t listed publicly, it allowed them to keep the sale under wraps, avoid paparazzi at showings, and maintain a level of privacy most high-profile buyers need.

While pocket listings can help limit exposure during the buying and selling process, it’s also important to know that real estate sales are typically part of the public record. In most states, details such as the property address, final sale price, and the buyer or seller’s name are accessible after closing.

That said, some states are non-disclosure states, meaning sale prices aren’t shared publicly. In other cases, buyers choose to buy a house with an LLC or use a trust to keep their names off the record, adding another layer of privacy beyond the sale itself.

Have pocket listings been banned?

Pocket listings haven’t been banned outright, but they’re more regulated than they used to be, especially when it comes to how agents share them.

In 2020, the National Association of REALTORS^® (NAR) introduced the Clear Cooperation Policy, which requires listing agents to submit a property to the MLS within one business day of marketing it to the public. This means that once a home is shared outside the agent’s office, through a public flyer, email blast, social media post, or word of mouth, it usually must be listed on the MLS.

But there are exceptions. Agents can keep listings private if they’re only sharing them within their brokerage or with clients one-on-one. Some multiple listing services also have their own rules about how pocket listings can be handled, and those rules can vary by region.

State laws may also come into play, particularly around agency relationships and disclosure. For example, if an agent represents both the buyer and seller in a pocket deal, they may be engaging in what is called dual agency, which is heavily regulated or even banned in some states.

Are pocket listings ethical?

Pocket listings can be legal and ethical if the agent is transparent, acts in the seller’s best interest, and follows NAR policy and local regulations. However, pocket listings can raise concerns.

Pocket listings can limit a home’s exposure, which may reduce competition and lead to a lower sale price, especially if buyers never get a fair chance to make an offer. In competitive markets, this lack of transparency can create questions about whether the seller truly got the best deal.

On a broader scale, too many off-market sales can distort market data and real estate comps. This can make it harder for appraisers, agents, and future sellers to accurately price homes. Whether a pocket listing is ethical often comes down to the agent’s intent and whether all parties involved understand the risks and benefits.

Alternatives to pocket listings

If you’re looking for a middle ground between a traditional and private sale, there are other alternatives.

• Coming soon: A coming soon real estate listing allows agents to promote a home before it officially hits the market. This creates early interest while still limiting the number of showings. This approach gives sellers more control over timing without fully keeping the listing off the MLS.
• Pre-listing MLS marketing: Some agents can share the listing internally within their brokerage before it hits the MLS.
• Private showings: List the home on the MLS but avoid open houses. This strategy limits showings to serious or prequalified buyers only.

Why sellers might use pocket listings

Sellers may choose a pocket listing for several reasons, often tied to privacy, control, or timing.

• They want to avoid public attention or media coverage.
• They prefer to limit foot traffic and showings to serious buyers only.
• They need to sell quietly due to a divorce, job change, or other personal situation.
• The home belongs to a public figure or high-profile individual.
• They’re testing the waters before committing to a public listing.
• They want to sell without making repairs or staging the home.
• The property is unique or hard to price, and they want more control over offers.
• They’re trying to attract a specific type of buyer.
• They want to avoid conversations about offers coming in above asking price.
• They’ve already identified a buyer and want to simplify the process.

Pocket listing pros and cons

There are several pros to pocket listings for buyers, sellers, and real estate agents, but they aren’t for everyone. Here are some pros and cons to consider.

Pros

Pocket listings offer several advantages, particularly for buyers and sellers with specific needs that are not typically available with a traditional sale.

• Sellers can limit public exposure and keep the listing private.
• Buyers may face less competition and improve their chances of getting a home.
• Sellers have more control over showings, pricing, and negotiation pace.
• Buyers might gain early access to homes that never hit the public market.

Cons

But pocket listings also come with limitations for both sides of the deal.

• Sellers may miss out on competing offers that drive the price up.
• Buyers may never know about the listing unless they’re well-connected.
• The lack of exposure can lead to a lower sale price or fewer offers.
• The chances of creating a bidding war are low if multiple buyers can’t see the home.

How to find pocket listings

Pocket listings aren’t publicly advertised, so finding them often comes down to relationships and timing. The best place to start is by working with a well-connected real estate agent who’s active in your target market. It’s even better if they’re tapped into local brokerage networks or off-market deals.

Some agents who aren’t affiliated with the NAR (and therefore not bound by certain MLS rules) may have more flexibility in how they handle pocket listings. Ask your agent directly if they’re aware of any homes being marketed quietly or if they can reach out to their network on your behalf.

FAQ

Here are the answers to the most frequently asked questions to help give you a better understanding of pocket listings.

How can I protect my privacy when selling a home?

You can keep things more private by using options like office-exclusive or private listings instead of listing publicly.

Where are pocket listings illegal?

They’re not illegal anywhere, but REALTORS^® who follow NAR rules aren’t allowed to use them.

What’s the difference between a pocket listing and a private listing?

Private listings go on the MLS but stay hidden from public sites, while pocket listings don’t go on the MLS at all.

Why would sellers want to avoid listing their home on the MLS?

Some sellers want to keep things quiet, so they don’t list their home publicly. Buyers may include people like celebrities or those dealing with legal issues.

The bottom line: Pocket listings can be useful, but they’re not for everyone

Pocket listings offer privacy, control, and exclusivity, but they come with trade-offs. They can work well for sellers who want a quieter sale and buyers looking for off-market opportunities. Some real estate agents also use them to market homes directly to trusted contacts or gauge interest before going public. Still, listing your home on the MLS is often the best way to attract the most buyers and get the strongest offer.

If you’re not sure which path is right for you, explore more tips and resources in our learn section. Ready to take the next step? Start your mortgage application today with Rocket Mortgage^®.