The only constant beside taxes and death is change...an oxymoron if ever there was one. However, while there is little doubt that the real estate business, like all other businesses, has and continues to undergo change, one thing holds true. To position a home to sell for top dollar, it must be seen by as many prospective buyers as possible.

That is why the continuing practice of holding "secret listings" or pocket listings, as they are also known, is a disservice to sellers. It is in direct conflict with an agent/broker's fiduciary responsibility to the seller to sell the home for the highest price possible within the seller's time frame.

True, it only takes one purchaser to consummate a sale - but it is also true that the more a desirable property is seen, the greater is the chance that competition will increase the final sale price. Nothing succeeds like a good old- fashioned "bidding war" when it comes to getting top dollar for a property. This is particularly true when the market is heavy with potential purchasers and light in available inventory. Scarcity is a friend of the seller and challenges the buyer.

So what does that say about secret listings? These are listings that some real estate companies tell their sellers to let them keep in house. They are listings that those companies withhold from advertising in the Multiple Listing Service (MLS) and other publications. These are the two most visible and effective means of communicating to other agents that a home is available for sale.

It is a fact that in order to maximize exposure, every home must "sell" twice. First a home must be "sold" to the real estate professionals in the marketplace. When they become aware of the listing, they in turn are able to communicate the availability of that home to their anxious buyers. That sets in motion the viewing, bidding and ultimate sale. It makes all the sense in the world that without that buzz and excitement generated by the real estate agents and their anxious buyers, the seller loses opportunities.

How can one quantify the potential loss to a seller created by the small amount of exposure of an in-house listing, versus the maximum exposure generated by all-out competition? Who knows? - probably thousands of dollars out of the seller's pocket?

But that's not the whole picture. There are other factors that narrow the advantages to the seller and simply don't help them to achieve their goals. The two commodities we seem to all possess in short supply are time and money. We have talked about the potential loss of money to a seller, but what about the time?

Most of the motivated sellers I have worked with over the years have a time frame in mind to accomplish their task. The sooner the home is sold the sooner they can sigh in relief. After all, even the most tidy among us finds it hard to keep up with the home for showings. There are other time considerations. Where are the sellers going? Do they have a new purchase to close on in a given time frame? Is the move job-related and they are due on the job at the new location at a fixed time?

The point is simply this. Which home will sell more expeditiously, the home where only a handful of agents are privy to the sale or the one where all the potential buyers are in on the opportunity? The answer is obvious to even the most inexperienced agent.

While some companies lure sellers toward secret listings with promises of exclusivity and elitism, the fact remains that homes that are not well marketed and exposed to the most potential buyers will not fare as well as those that are. The listing company must work to bring the seller the most money the market will bear, in the least amount of time. That can't be accomplished when the listing company is more concerned about their own interests then those of their sellers.

Like it or not, we are a country built on competition. Competition creates opportunity and opportunity creates advantage. The only real secrets that pocket listings hold are the seller's time and money!

Let's stop the practice of secret listings now.

Published: March 4, 1999

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Editor's Note: This article reflects the opinions of Marylyn B. Schwartz only and not necessarily the views of this or any other publication, organization or Website owner.

Marylyn B. Schwartz, CSP, is a noted expert in real estate and corporate sales training, team development, customer care and diversity issues. She is president of TEAMWEAVERS and a trainer for Leader's Choice, the number one real estate sales training program in North America. Marylyn is also an author and Business/Life Coach. Contact her at , or visit her website at teamweavers.com.