Tom Branch wrote a featured post titled “Are Hip Pocket Listings Really a Good Thing” and I’d like to share my thoughts on that topic. My team and I are listing agents and every listing we secure is immediately submitted to MLS. This is our rule with one exception. Give me a moment to find my bulletproof vest!!
Whenever we search for tracts of land, we explain to the seller that if they list the land with us, it will not be submitted to MLS. If we sell the land to a developer, and we secure the listings, we will not charge a commission on the sale.
This type of agreement can be called a “pocket listing” or it can be referred to as “good business sense.” There is nothing more discouraging than to have an agent introduce a developer to a tract of land and not know how to proceed from there.
If we don’t submit the listing to MLS, we can eliminate handing an agent, with his/her head in the sand, a parcel of land for 100 new homes. That would happen over my dead body!!!
Tracts of land are a rare entity in my area. If another agent who is seasoned on the subject of land sales and new construction has a developer/builder, and we can work out an equitable split of listings, we’ll do a deal. But we will not have a gun to our heads to co-broke a tract of land; do all of the tedious work for 2 years to obtain approvals; and not receive listings. You can call it whatever name comes to mind. I call it good business sense.