National Association Of Realtors Bans Pocket Listings
The National Association of Realtors has officially banned the use of pocket listings. The NAR board of directors voted 729-70 on Monday to ban the controversial practice. The NAR stated the practice was controversial because it allowed agents to select who the property is sold to.
Pocket listings were surging in competitive markets in overpriced markets like New York, San Francisco, Los Angeles and Washington D.C.
A listing agent to use the MLS service to let select realtors know the property was for sale. Realtors would usually list it with code words or with an informal “coming soon” notice. This also allowed them to avoid officially sharing the listing and often retaining a full commission.