Just because there isn't a "For Sale" sign in a yard, doesn't mean the homeowner isn't taking offers. You just have to know the right person. See our Office Exclusives here.
Despite strong demand in our Silicon Valley market, some homeowners are skipping the process of officially listing their home on the multiple listing services, leaving agents with the task of finding a buyer without publicly advertising it.
And real estate professionals say these "secret" listings -- commonly known as "pocket listings" -- are becoming more popular.
But in a seller's market with bidding wars driving offers well above the asking price in some areas, why would a homeowner sell their home in secret?
The reasons vary: some want privacy, others are testing the waters and some think the exclusivity can draw a higher sale price.
"Many times I've had pocket listings where people will say, 'If I get this number I will sell, otherwise I have no desire."
Not publicly listing a home can reduce the pool of buyers, which could potentially mean missing a top offer.
Public sales can lead to off-market sales when a neighbor stops by an open house and questions the asking price of the home. When the home sells for that once-thought inflated price, agents will sometimes approach neighbors about selling. "We have the buyer demand to pair them with a home that isn't even on the market."
Pocket listings are also sold among agents representing buyers and sellers. Those with an offline property will work with other professionals to find a seller.