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Sold before 'For Sale': How do you compete with 'pocket listings' in DFW?

Homes are selling before they're made public. How do you become a contender?

COLLIN COUNTY, Texas — Ever notice a home in your neighborhood sells before the "For Sale" sign goes up? 

As if finding a home in DFW wasn't hard enough, this is another aspect that prospective buyers are facing.

According to Redfin, homes that sold across the country without being marketed went up 67% in 2021, from 2019.

So if this is the case, how do you compete in a costly housing market that’s experiencing low inventory? 

Collin County Realtor Terry Soussan said this is where having a strong working relationship with your realtor comes in. 

Soussan recommended choosing a real estate agent that is well connected and has insight into homes their clients or colleagues are preparing to sell. Because often, they’re able to find these homes before they hit the market.

At the same time, Soussan is seeing renters who are desperate to become homeowners consider the place they’re already in.

“The other thing I’m seeing is renters asking their landlords ‘hey are you thinking about selling this? We’re already in here, what do we do?’ I know that’s tempting," Soussan said. "Unfortunately as a renter, your landlord is not necessarily going to have your best interest in mind, too. So again, it goes back to making sure there’s someone advocating there for you."

Other ways potential buyers are getting ahead of the game is scouting social media for "coming soon" posts, and reaching out to friends, family, and people in their community to see if anyone plans to sell their home.

What are the rules for 'pocket listings'? 

There are certain rules and regulations to listing a home, if you're not selling it on your own ["For Sale By Owner"].

In November 2019, the National Association of Realtors Board of Directors adopted the Clear Cooperation Policy in response to concerns about the use of pocket listings, and other tactics to keep properties off the MLS to the disadvantage of homebuyers and sellers.

The Clear Coop Policy went into effect on May 1, 2020. It requires the listing broker to submit a listing to the Multiple Listing Service, or MLS, for cooperation with other MLS participants within one business day of marketing a property to the public. The fine for violating this rule is $2,500 + $100 per day until entered on MLS.

For more information on the Clear Cooperation Policy and why it was put into effect, click here

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