House hunting lately? It is a headache. You refresh the app, spot a perfect place, and five minutes later, it is marked “Pending.” It feels like the game is rigged.

Well, sometimes it is.

There is a whole layer of the housing market that operates under the radar. These homes never see a “For Sale” sign in the yard. They do not pop up on Zillow, Redfin, or the local MLS (Multiple Listing Service). This is the world of pocket listings.

For decades, this was just how business got done between savvy agents and well-connected clients. But recently, the rules have changed. The definition of a pocket listing in real estate is not what it was five years ago. Whether you are a seller trying to keep your neighbors out of your business or a buyer trying to get an edge, you need to understand how this hidden market works today.

Here is the real story on pocket listings, the “Office Exclusive” loophole, and why you do not want to confuse them with a net listing.

What Does Pocket Listing Mean?

Let us keep the pocket listing definition simple. It is a property that an agent has a contract to sell, but they keep it “in their pocket” instead of sharing it with the rest of the real estate world.

In a normal deal, you sign the papers, and your agent blasts the listing to the MLS immediately. That pushes the data to thousands of websites. With a pocket listing, the agent signs the agreement but keeps the file in their desk drawer.

Instead of mass marketing, it is all about who you know. The agent might whisper about it at a brokerage meeting, call a specific investor, or email a shortlist of cash-heavy clients. It is private. It is quiet.

Why Hide a House?

Logic says that more exposure equals a higher price. So why would a seller want fewer people to see their homes?

It usually comes down to four things:

• Privacy is King: This is the big one. Celebrities, politicians, or people going through a messy divorce often do not want interior photos of their closets on the internet for the world to analyze.
• The “Exclusive” Vibe: In luxury markets, scarcity sells. Sometimes a home feels more valuable simply because not everyone can afford it.
• Testing the Waters: A seller might say, “I’ll move if I get $1.5 million.” A pocket listing lets them test that number without racking up “Days on Market,” which can make a listing look stale if it does not sell fast.
• Avoiding the Circus: Some folks just do not want fifty strangers tracking mud through their living room on a Sunday afternoon open house.

Trade Offs: Is It Worth It?

Stepping outside the MLS changes the dynamic of the sale. It is not always better, but it is different.

Feature	The Seller’s Reality	The Buyer’s Reality
Privacy	Pro: No yard signs. No nosey neighbors. Total discretion.	Con: You will not find these on an app. You need an agent with deep connections.
Competition	Con: Fewer eyeballs usually mean fewer offers. You might leave money on the table.	Pro: You are not fighting a bidding war against 20 other people.
Speed	Pro: Can be instant if the agent already has a buyer lined up.	Con: You must move lightning fast. These deals are often “now or never.”
Pricing	Pro: You can ask for a premium price without public scrutiny.	Con: It is hard to know if you are overpaid since there is no open market to validate the price.

Is Pocket Listing Illegal?

I get asked this constantly: Is pocket listing illegal?

No. It is not illegal under federal law. The police are not going to arrest you for selling your house privately. However, the National Association of Realtors (NAR) hates them.

In 2020, NAR dropped the hammer with the Clear Cooperation Policy. They said that if an agent is a member of the MLS, they must list a property on the MLS within one business day of marketing it to the public.

So, how do they still exist? Loophole time. It is called “Office Exclusive.”

Under current rules, a seller can sign a waiver that keeps the home off the MLS if the agent only markets it inside their own brokerage. They cannot put a sign in the yard. They cannot blast it on Facebook. But they can tell the other 200 agents in their office about it. If you see a home close today with zero history on the market, it is likely an Office Exclusive.

Don’t Get Confused: Pocket Listings vs. Net Listings vs. Pocket Cards

Real estate jargon is a mess. People mix these up all the time, but the differences are huge.

1. What Is Net Listing?

Pocket listing is a marketing strategy. A net listing is a commission structure, and honestly, it is sketchy.

A net listing definition works like this: You tell your agent, “I want $300,000 for my house. Anything you get over that, you keep.”

Example: The agent sells your house for $350,000. In a net listing, they pocket the extra $50,000 as their fee.

Is it legal? In many places, absolutely not. Net listing real estate agreements are illegal in states like New York and New Jersey. Even where they are legal, they are dangerous. It incentivizes the agent to lowball the value of your home so they can keep the surplus profit. Avoid these.

2. What Is a Pocket Card in Real Estate?

If someone asks, “What is a pocket card in real estate?” They are not talking about buying a house.

A pocket card is just the physical license ID issued by the state. Agents must carry it (literally in their pocket) to prove they are licensed. It has their photo and license number on it. That is it.

The Cheat Sheet

• Pocket Listing: Selling secretly (Off market).
• Net Listing: Agent keeps the extra profit (Often illegal).
• Pocket Card: An ID badge (Proof license).

How to Find Pocket Listings

If you are a buyer, finding these off-market deals is like finding a speakeasy. You need the password. Since you cannot search for them online, you must get aggressive.

Here is how to find pocket listings:

1. Work with the Big Dogs. Because “Office Exclusives” are the main way pocket listings happen now, you need an agent at a large brokerage. An agent at a boutique firm with 5 people will not have access to the same private inventory as an agent at a firm with 500 agents sharing internal tips.

2. Network Like an Investor: Join local real estate Facebook groups or go to investor meetups. Wholesalers and investors trade off-market deals in these circles all day long.

3. The “Driving for Dollars” Approach. If you love a specific neighborhood, drive around. Look for homes that look vacant or are being renovated but have no sign. Write down the address and send a letter. Sometimes you can catch a seller before they even hire an agent.

4. Ask Top Producers Point-Blank: Find the agents who sell the most homes in your target area. Call them. Ask specifically: “Do you have any office exclusives coming up?” Top agents always have a pipeline for sellers to get ready.

The Bottom Line

Pocket listings are controversial, but they are not going away. They just evolved.

For sellers, they offer a way to test the market without public pressure. For buyers, there is a chance to snag a home without getting into a fistfight with ten other offers.

But remember, transparency protects you. When you step off the open market, you are relying entirely on your agent’s ethics and advice. Make sure you trust them. Now that you know the difference between a pocket listing, a net listing, and a pocket card, you are better equipped to handle the hidden side of real estate.

FAQ’s

What is the difference between a pocket listing and an MLS listing?

An MLS listing is public and syndicated to sites like Zillow and Redfin. A pocket listing is private and is only marketed to a select group of agents or buyers without being publicly advertised.

Are pocket listings illegal?

No, they are not illegal under the law. However, they are restricted by the National Association of Realtors. Agents must follow the “Clear Cooperation Policy,” which limits how they can market these homes outside of their own brokerage.

How do I find pocket listings near me?

You need to hire a well-connected real estate agent, preferably from a large brokerage. You can also network in local real estate investment groups or contact top-producing agents directly to ask about their “office exclusives.”

Do pocket listings sell for more money?

Not always. While they can create a sense of exclusivity, keeping a home off the open market means fewer buyers see it. This lack of competition can sometimes lead to a lower final sale price.

What is a net listing in real estate?

A net listing is an agreement where the agent keeps any amount of money sold over a specific price set by the seller. Unlike pocket listings, net listings are illegal in many states due to conflicts of interest.