Maximizing Returns with a 1031 Exchange out of California
A growing trend in real estate involves sellers asking agents to delay listing their homes on the Multiple Listing Service (MLS), particularly for investors exploring a 1031 Exchange out of California and into Texas. Instead of a public listing, agents quietly share the property with friends, brokers, and other agents. These “pre-MLS” or “pocket” listings often carry a slightly higher price, as sellers are not in a rush and want to test the market for maximum value. By postponing the MLS listing, sellers can gauge genuine buyer interest before making the home widely available.
Pocket listings can also benefit buyers. In markets with limited inventory, bidding wars are common, leaving buyers frustrated. Accessing pocket listings through informed agents can help avoid multiple competitive bids. However, buyers may face challenges negotiating price, especially if the seller holds firm. Despite this, buyers often accept the terms to secure a property quickly and start their new chapter.
This listing method isn’t new but has gained traction due to modern technology. Agents now share pocket listings via email, professional networks, and platforms like the “Top Agent Network,” making the approach more visible than ever before.
Luxury home sellers, in particular, find pocket listings valuable. High-net-worth individuals often prefer limited showings and controlled marketing while their agents spread the word discreetly. If no buyer emerges at a slightly higher price, the home can later be adjusted to match comparable market values. Pocket listings remain off the MLS until formally listed, and only then does the official market day count begin.
Despite these advantages, risks exist. Buyers may overpay if sellers price aggressively, while sellers risk losing potential buyers if priced too low. For this reason, many agents still favor traditional MLS listings to maximize exposure. Successful pocket listings rely heavily on marketing expertise. Sellers should partner with experienced agents like DMC Investment, who are skilled in creating effective marketing strategies while navigating discreet, high-value transactions.