Who pays for pocket listing commissions?

Question

A realtor told me he’s got a pocket listing that may be right for me. I think I’ve read here that buyer gives bonus for such a thing .

Is that true ? if so , how much would be right for a $500 k building ? would it depend on weather or not the seller pays commission? please explain - thanks!

Account Closed · Answer

a pocket listing is simply one that has not hit the MLS yet Generally a listing agent might have 2- 5 days to place the listing on the MLS. In Vegas realtor board just started a coming soon listing which gives all agents a chance to sell a pocket listing. The seller would be paying the commission just confirm with the listing agent the commission @Marci Stein

Marci Stein · Answer

@Dan Mumm that’s exactly the info I was hoping for - thank you !

Dan Mumm · Answer

Hi @Marci Stein, great question. Dealt with this a bunch so let me give you the answer from the agent perspective.

Commissions are traditionally paid by the seller, even in pocket listing scenarios. In fact, if I'm representing a seller on a "pocket listing" and I find my own buyer, I'm bringing the seller even more value than with a traditional sale. I'm getting them the end result they want without any commitment from them, inconvenience, or marketing, showing of the property, cleaning it up, etc. So they are normally more than happy to pay for the Realtor's commission.

However, if a Realtor is bringing you (as a buyer) a large volume of lucrative, exclusive, off-market deals, they may ask to be rewarded for the relationship equity if these are not normally accessible or easily found. Sometimes I charge fees to investor clients in these scenarios ranging from $500 - 1% of the sales price at closing. This is rare, usually I just look to earn their future business (the listing when they sell, etc) and don't charge anything.

The only exception would be if you are buying foreclosure/auction/bank-owned properties where the commissions are dramatically reduced. Sometimes the agent may ask you to pay an additional fee to get you into the deal in these cases.

Overall, it's not necessary to reward the agent on the buying side. Just be a good customer, respect the relationship, send them a few referrals and they'll be happy :)

Marci Stein · Answer

I understand the seller pays commission but if I want more pocket listings from realtor in future ,

I’d need to reward him as well . just have no idea how much .suggestions?