The agent doesn’t advertise the property and moreover he is the agent for both buyer and seller. Thus not many people get to know about selling of the property nut in some cases the agent tell his/ her well known agents about the selling of the property. The agent usually shares the commission with the agents he/she share a good bond with that agent. It is also known as exclusive listing.
While in open listing the selling is usually done by professional real estate agents who negotiates and choose the best deal for the seller. Real agents can advertise the property and choose between different offers.
Pocket listing method helps the agents to get the commission from the buyer as well as the seller thus making double commission. It is also helpful for the sellers who wants to sell the property secretly and don’t want to list the property in the Multiple Listing Services.
These agents can take advantage of the sellers since many buyers don’t know about the property so thus manipulate the prices. So thus this can be a disadvantage for the sellers. The sellers are not open to the whole market in pocket listing and limited to few buyers. Thus this is not for general public. Buyers should have right connections to get houses from pocket listing.
Many people believe this is harmful for the real estate industry as it reduces competition in the industry. It also leads to manipulating of prices of the property. Moreover, no accurate data is there for such transactions thus it is difficult to find out the real price prevailing in the market for the properties that are sold in open listing.