Pocket Listing Guide: Compliance, Pros, Use Cases & More

A pocket listing, also known as an off-market or whisper listing, is a property that’s for sale but not advertised on a Multiple Listing Service (MLS). It is, instead, marketed privately by the listing agent to a select pool of potential buyers, often via direct outreach or exclusive networks. The approach is usually done to maintain privacy, create exclusivity, or test pricing.

TL;DR:

What is a pocket listing? It is a property that is being sold but is not publicly listed on the MLS.
- Think of it like a famous artist’s concert. Before tickets (properties) are sold to the public, a few VIPs (buyers) and industry insiders (agents or brokerages) get first dibs.
How does it work? A seller signs a listing agreement with just one agent or brokerage, giving them the exclusive right to sell the property, specifically without listing it on the MLS.
- It’s like an exclusive record deal with a producer (agent or broker). If a talent (seller) wants to release an album (property) but prefers for it not to be distributed via public channels (MLS), they sign a deal to record, market, and sell it privately to a handpicked network of insiders or collectors (buyers or investors); no Spotify or Apple Music.
Is it legal? Yes, if you’re not a National Association of Realtors (NAR) member; no, if you’re a Realtor.
Pros: Privacy, targeted marketing, and prestige
Cons: Limited exposure, reduced competition, and fair housing concerns

In this guide, we’ll walk you through the legal and compliance landscape, the differences between a pocket listing and a standard listing, and why you may want a pocket listing (be it as an agent, a seller, or a buyer). We also list alternatives in case you decide pocket listings aren’t for you.

How a pocket listing works
Red tape and fine print: The legal and compliance landscape
Pros & cons of a pocket listing
Off-market or on-display? Pocket listing vs standard listing
Reasons you would want a pocket listing
Winning the game: How to navigate a pocket listing
Not sold? Alternatives to a pocket listing
Frequently asked questions (FAQs)
The final walkthrough

How a pocket listing works

In a pocket listing, the property is kept off the MLS and marketed privately by the agent or brokerage, who selectively shares it with their trusted buyers or brokers. Doing so guides the sale through a quieter, more controlled process.

Step 1: The property is listed privately.

The seller and agent agree to market the property privately and keep the sale off-market in lieu of entering it into the MLS. That may be done due to privacy, control, or strategic reasons.

The seller signs a listing agreement with a single agent or brokerage.
The agent is prohibited from marketing the property publicly on the MLS and other typical advertising channels, such as brokerage and real estate websites, email campaigns, social media ads, and yard signs.

Step 2: The agent promotes the property discreetly.

The listing agent will do the following:

Share the property with their personal network of buyers and agents
Reach out to prequalified buyers directly
Use broker-to-broker communication and private listing platforms, such as broker-only networks (e.g., Top Agent Network, ThePLS.com, and Compass Private Exclusives).

Step 3: The agent handles showings and offers privately.

Showings with select buyers and brokers are handled in private. Compared with a public listing, offers, if any, are often fewer, and negotiations are swifter and more confidential.

Step 4: The closing follows standard procedure.

Once the seller accepts an offer, the transaction proceeds like any other real estate sale.

It’s worth noting that the real estate terms “pocket listing” and “private real estate listing” are often used interchangeably. However, private listings can include any listing with privacy elements, such as an unpublished listing or a for-sale-by-owner (FSBO) property.

Red tape and fine print: The legal and compliance landscape

Is a pocket listing legal? As of this writing, yes, holding a pocket listing is technically legal in all 50 states. No specific laws prohibit a real estate agent from representing a seller when a listing is kept off the MLS.

However, the NAR threw a wrench in the pocket listing game in November 2019, effectively banning it for all its members, known as Realtors.

NAR, the largest trade organization in the country with nearly 1.5 million members in the US, effectively voted to ban pocket listings starting in May 2020.
NAR’s MLS Clear Cooperation Policy requires NAR members to post listings to their local MLS within one business day of marketing the property to the public.
Public marketing includes everything from flyers in windows and yard signs to digital marketing on websites, email blasts, and even social media posts.

There is one thing to note. The Clear Cooperation Policy does have an “office exclusive” exception, seen in Section 1.3 Exempt Listings.

That means if a seller asks that their listing only be marketed within the listing broker’s firm or among the brokers and licensees affiliated with that brokerage, it can stay off the MLS.
However, the listing must be filed with the MLS, accompanied by a certification signed by the seller, stating they don’t want the listing shared on the MLS.

So, while keeping a pocket listing isn’t illegal, Realtors who don’t follow NAR’s rules could face warnings or fines from their local Realtor association. And since Realtors make up a big chunk of the real estate industry, this policy change is a pretty big deal.

Check with your state’s real estate commission for the most up-to-date information on the legality and regulations surrounding a pocket listing.

The ethics question

While a pocket listing is not illegal, which is why some defend it ethically since there are sellers who want or need discretion due to personal or security concerns, others argue it’s not always ethical. In fact, Zillow announced that, effective May 2025, it has also banned pocket listings on its platform, implementing the NAR Clear Cooperation Policy.

Can pocket listings violate fair housing laws? Yes, it can potentially violate fair housing laws, even unintentionally, depending on how it is marketed and to whom it is marketed. While the listing itself may be legal, discriminatory practices or outcomes tied to the way it is shared could violate the Fair Housing Act (FHAct), Title VIII of the Civil Rights Act of 1968. The federal FHAct prohibits discrimination in housing based on race, national origin, color, sex, religion, disability, and familial status.

Here’s how a pocket listing can cross the line.

Selective marketing: It may inadvertently exclude qualified buyers from protected classes since it’s shared only within a limited or non-diverse network (e.g., certain agents, brokerages, or social circles).
Agent bias: If an agent chooses not to show it to specific buyers based on assumptions about race, color, religion, etc., that constitutes illegal discrimination, regardless of the seller’s or agent’s intent.
Lack of transparency: Given that it bypasses the MLS, it eliminates the broad exposure that helps ensure equal access to housing opportunities. That limits oversight and can make discriminatory patterns harder to detect or prove.

How an agent can mitigate risk:

Market inclusively, even within private channels. Avoid exclusive networks that may not reflect a diverse buyer pool.
Keep documentation that shows all qualified buyers had equal opportunity.
Ensure you have client consent.
Act in compliance with state laws and Article 10 of the NAR’s Code of Ethics.

Pros & cons of a pocket listing

Pocket listings have been a hot topic in the real estate world, with strong opinions on both sides, as seen above. Some swear by them, while others think they’re unethical.

Pros	Cons
Privacy and discretion: Keeps the sale off public platforms like the MLS, offering protection for high-profile clients or sensitive situations.	Lack of transparency: Doesn't offer public listing data, making it harder to evaluate market value, comparable sales, and days on market (DOM).
Prestige and exclusivity: Creates a sense of rarity and VIP access, which can be appealing to luxury buyers and high-end sellers.	Limited exposure: May reduce interest, offers, and even the sale price, as the property lacks MLS visibility, resulting in fewer potential buyers.
Less pressure: Allows for more relaxed negotiations and decision-making since there's no visible DOM given the lack of public exposure.	Potential for dual agency conflict: Allows for one agent to represent both the buyer and the seller, which requires extra care in negotiation and disclosure.
Stronger agent–client relationship: Enables agents to offer tailored, trust-based services, which may turn into more referrals and repeat clients.	Fair housing risks: May raise ethical and legal concerns, given that restricted marketing may inadvertently exclude certain groups.
No bidding wars: Reduces the chaos of competing offers and eliminates rushed decisions that often come with multiple-offer situations.	Not for slow markets: Comes with limited exposure, which can backfire when demand is low, as that leads to a longer time to sell or reduced urgency.

Ultimately, whether or not to use a pocket listing depends on the specific situation and the client’s needs. An agent’s job is to weigh the benefits and drawbacks and advise clients on the best course of action. And if the pocket listing route is taken, it’s crucial to ensure it’s done for the right reasons and not just to increase commissions by double-ending a deal.

Keep reading:
- Guide To Effective Listing Presentations (+Template)
- Real Estate Terms and Definitions to Know

Off-market or on-display? Pocket listing vs standard listing

When it comes to selling a property, there are two main types of listings: standard and pocket. The primary difference between the two lies in how widely the property is marketed and the level of privacy offered.

	Pocket listing	Standard listing
Common use case	Privacy-sensitive sellers, luxury properties, and price testing	Those wanting to maximize exposure and competition
MLS exposure	✕	✓
Marketing strategy	Private; selective outreach	Public; wide-reaching advertising
Typical marketing channels	Direct outreach and private listing services	MLS, Zillow, social media, signages, and open houses
Privacy level	High	Low
Buyer pool	Limited; typically agent's network or private platforms	Broad; agents, public buyers, websites, and more
Control over sale	High; seller and agent control who sees it	Moderate; open to all qualified buyers
Compliance rules	Follow Clear Cooperation Policy if affiliated with NAR	Be fully compliant with MLS and NAR guidelines
Ave. sale price^[1]	~$5,000 lower than baseline	Baseline
Closing rate^[1]	2%	96.67%
DOM^[2]	37	20

According to a study by Bright MLS[2], around 90% of pocket listings sold only after they were converted to standard listings.

Reasons you would want a pocket listing

Pocket listings might seem like an odd choice, but there are actually some pretty compelling reasons why someone might opt for this approach.

Have tighter control over the transaction: In contrast to a standard listing, a pocket listing allows agents to control the showings, buyer pool, and offer timing. They can also manage pricing and the narrative without market pressure, such as the DOM countdown. More importantly, they can protect their seller from lowball offers and their buyer from bidding wars, escalating prices, and more.
Build an exclusive brand: Agents with a listing in their hip pocket are often perceived as insiders with special inventory. That allows them to attract buyers looking to find off-market properties or “quiet” opportunities, differentiate themselves from competitors with standard MLS access, and enhance their personal brand, especially in niche or luxury markets.
Gain leverage in future listings: Having a pocket listing can demonstrate to sellers that the agent is trusted with high-value and sensitive transactions, can move a property efficiently, as well as discreetly, and has active buyer networks.
Work around unique client situations: When clients have a property that isn’t ready for a public showing due to renovations or even a current tenant in place, the agent can quietly market it during prep without starting the MLS clock or inviting premature judgment. Other situations include when a client is unsure about selling because of a divorce finalization or job offer; in this case, the agent provides a low-pressure way to start early conversations or gauge interest.
Test the market strategically and without commitment: Agents can test the pricing strategy before going live, gather buyer feedback to improve presentation or staging, and create a sense of urgency or scarcity before the public launch. Those may help yield stronger results when the property is listed on the MLS.

Bright MLS^[2] found that there’s no price advantage to a pocket listing. It doesn’t have a higher sale price than the MLS listing of a similar home in a similar neighborhood.

Winning the game: How to navigate a pocket listing

Navigating a pocket listing requires a careful balance of strategy, compliance, trust, and ethics, regardless of whether you’re an agent, a seller, or a buyer.

For agents

Step 1: Understand your client’s motivations.

🎯 Identify why the client wants to keep the listing off the MLS. Is it due to privacy concerns, legal or logistical issues, strategic exclusivity, or other things?

☑️ Know their “why” to help determine whether a pocket listing is the best approach.

Step 2: Educate your client on the peaks and pits.

🎯 Give them a straightforward explanation of what they gain (e.g., privacy, flexibility, and control) and what they give up (e.g., public exposure and competitive bidding).

☑️ Use simple, client-friendly visuals, and document that they made an informed decision.

Step 3: Get a signed listing agreement.

🎯 Get a written exclusive right-to-sell or exclusive agency agreement that details the marketing scope, clarifies terms (e.g., price, timing, and disclosures), and includes seller acknowledgment of off-market limitations.

☑️ Include a clause that allows the transition to the MLS, if needed later.

☑️ Bonus: Watch for expiration dates in exclusive contracts, and revisit the listing plan regularly.

Step 4: Stay compliant with NAR’s Clear Cooperation Policy and MLS rules.

🎯 Ensure you comply with the requirement to list the property on the MLS within one business day.

☑️ Document every step, keep marketing truly private (e.g., direct outreach and brokerage-only platforms), and avoid public platforms and third-party advertising.

Step 5: Screen buyers carefully.

🎯 Prioritize buyers who are pre-qualified, align with the seller’s terms, value discretion or flexibility, or will pay via cash.

☑️ Ask questions before granting access, as a pocket listing doesn’t call for the regular open house.

Step 6: Use strategic, private marketing.

🎯 Maintain exclusivity while reaching serious but pre-screened leads.

☑️ Market the property through broker networks, internal brokerage communications, selective off-market showings, and direct outreach to qualified buyers or buyer agents.

Step 7: Handle offers and negotiations transparently.

🎯 Don’t exploit the limited exposure to push either the buyer or the seller into one-sided terms.

☑️ Document all conversations, present all offers promptly, and avoid dual agency risks without property consent and disclosure.

Bonus: Know when to pivot.

🎯 Be ready to transition a standard MLS listing.

☑️ Remind the client that you educated them on the fact that exclusivity has its limits, one of the drawbacks of a pocket listing (discussed in Step 2). As such, you will have to work together to reset the pricing, presentation, and timing strategies.

For sellers

Step 1: Understand what a pocket listing is.

🎯 Keep in mind that your property won’t be listed on the MLS and will instead be marketed privately (i.e., to select agents, networks, and buyers). A pocket listing is ideal if you seek privacy, control, less stress, or a market test.

☑️ Remember that unless you and your agent decide to pivot, you won’t have broad advertising.

Step 2: Understand the trade-offs.

🎯 Be informed and comfortable with the disadvantages.

☑️ Note that a pocket listing has both benefits (e.g., more privacy, fewer disruptions, and potential for a quiet and clean deal) and drawbacks (e.g., less visibility, fewer competing offers, and risk of a lower sale price).

Step 3: Find a well-connected agent.

🎯 Work with an agent with a private buyer network, access to off-market platforms, and a strong relationship with other top agents, as your success depends heavily on those things.

☑️ Ask about how they will market privately and who will see the property and how.

Step 4: Tell your agent about your goals and priorities.

🎯 Discuss those openly with your agent, who will help match your objectives with the right and best approach.

☑️ Ask yourself whether you value privacy over maximum exposure, are okay with potentially fewer options in exchange for less disruption, and have sensitive reasons (e.g., legal and financial) for wanting to stay off-market.

Step 5: Stay legally and ethically aligned.

🎯 Avoid fair housing concerns by ensuring inclusive buyer outreach with the help of your agent.

☑️ Don’t allow for your property to be marketed publicly, including on social media, unless you’re ready to transition to the MLS. Public marketing may trigger compliance rules.

Step 6: Put everything in writing.

🎯 Sign a listing agreement, and ensure that it includes your consent to limit exposure, defines that off-market marketing plan, and covers pricing, timelines, and agent responsibilities.

☑️ Ask your agent if and when the listing might transition to the MLS if the results aren’t as expected.

Bonus: Be flexible.

🎯 Be open to adjusting the price, and consider transitioning to the MLS if needed.

☑️ Stay in communication with your agent. Ask for updates, buyer feedback, and next steps.

For buyers

Step 1: Work with a well-connected agent.

🎯 Choose an agent who specializes in your target market and has deep local ties. Most pocket listings are accessible only via agent networks, direct relationships, or private platforms.

☑️ Ask if they have access to private listing networks, pre-market or “coming soon” listings, and internal brokerage communications.

Step 2: Trust your agent to guide you, both ethically and strategically.

🎯 Watch out for dual agency scenarios, as this might limit an agent’s ability to advocate for your best interests. Also, ask how the property is being marketed to ensure fair housing and local laws are followed.

☑️ Ask for a comparative market analysis to avoid overpaying, the risks of dual agency, and the inspection history, disclosure, and repair notes.

☑️ Bonus: Stay cautious of exclusivity hype. Not all pocket listings are great deals.

Step 3: Get pre-approved and buyer-ready.

🎯 Be fully prepared by getting pre-approval or proof of funds. Be clear on your budget and must-haves, and move quickly when the right property is available.

☑️ Remember that pocket listings are shown to just a few buyers, plus sellers usually prioritize convenience and certainty over competition.

Step 4: Keep a low profile.

🎯 Be discreet, qualified, and serious.

☑️ Be respectful of limited access and private showings, avoid sharing details about the property publicly or on socials, and be open to unusual timelines, showings without staging, and off-hours appointments.

Step 5: Ask about the seller’s motivations.

🎯 Understand their goals to help you craft a more appealing offer, even if it’s one without competing bids.

☑️ Ask whether the seller wants a fast close, long escrow, or post-sale occupancy. Also, get insight into whether the property is part of an estate, investment portfolio, or pre-foreclosure.

Bonus: Be patient but proactive.

🎯 Be ready to act when the right property surfaces, though this may take some time, as pocket listings often come up quietly.

☑️ Stay in regular contact with your agent. The right property for you may be in their inbox.

Keep reading: How To Get Real Estate Listings in Any Market on a Budget

Not sold? Alternatives to a pocket listing

Apart from the standard MLS listing, there are other alternatives to consider if you decide you don’t want to take the pocket listing route.

	Private exclusive listing	Exclusive agency listing	Coming soon listing	Open listing
What it is	A listing marketed privately within a brokerage's internal network	An agreement where the seller hires one agent, but seller can still sell the property independently	Are-MLS listing status allowing limited marketing while preparing property for full launch	A non-exclusive agreement allowing multiple agents to find a buyer
Best for	Sellers needing privacy or control	Sellers seeking flexibility to self-market	Sellers prepping their property and wanting to build early interest	Sellers needing to sell fast or doing an FSBO
MLS-listed	No	Optional	Yes	Optional
Buyer visibility	Limited	Broad if listed	High	Broad if listed
Seller flexibility	Average Have limited exposure but controlled process and timing	High Can sell independently and choose marketing approach	Average Must follow the MLS's timeline once active	Very high Control everything and work with any number of agents and buyers
Agent's role	Discreetly markets to internal or brokerage buyers; handles all showings and negotiations	Markets the property but competes with the seller's efforts; may provide partial services	Manages staging, prep, and pre-launch marketing; schedules the public rollout	Has a minimal role unless a buyer is brought in; usually provides little service or guidance
Agent's motivation	High	Moderate	High	Moderate

A direct cash buyer is another valid pocket listing alternative, even if it’s not technically a listing strategy. As a selling method, the property is sold directly, often as-is, to a cash buyer (e.g., investor or housebuying company) without public or private marketing.

It is typically used by the following:

Sellers facing foreclosure, divorce, or urgent relocation
Heirs seeking to liquidate inherited property quickly
Landlords offloading tenant-occupied or distressed properties

Its benefits include speed, simplicity, and no need for prep or showings. On the flip side, pitfalls include discount sales prices and limited legal protections if not handled carefully.

Frequently asked questions (FAQs)

To find pocket listings, you’ll want to network with top local and luxury real estate agents, work with well-connected brokers with internal listings, and join exclusive groups (e.g., agent networking groups).

Pocket listings might sell faster or for more money than MLS listings if there’s a ready buyer or a strong demand in niche or luxury markets.

Pocket listings are typically used by agents wanting more control or market testing, investors seeking exclusive deals, and homeowners seeking privacy. They’re favored when discretion, exclusivity, and speed matter.

The disadvantages of a pocket listing include fair housing concerns if not marketed widely (e.g., potential for discrimination), few offers given less competition and weak negotiation leverage, long time to sell if no immediate buyer is available, dual agency conflict, and limited exposure, which may result in a lower sale price.

No, it doesn’t. It banned pocket listings in May 2020. Under its Clear Cooperation Policy, pocket listings must be listed on the MLS within one business day of publicly marketing the properties, like on social media and via email.

However, office exclusive listings are an exception. That means if a seller asks for their listing to be marketed only within the listing broker’s firm and its affiliations, it doesn’t have to be on the MLS (it must still be filed on MLS, complete with a seller-signed certification indicating that they don’t want the listing on the MLS).

The final walkthrough

A pocket listing has been a staple in the real estate industry. There will always be opportunities for agents to tap into the exclusive world of private listings because there will always be sellers who value privacy and speed, as well as buyers who seek discretion and exclusivity.

There are tons of opportunities for agents with gumption, hustle, and stellar networking skills. Are you tapping into a strategy we didn’t cover? What’s your take on pocket listings? Share them with us in the comments.

Sources:

^[1]Zillow

^[2]Bright MLS