Words matter, and how we use those words can confuse, clarify, or even confound our buyers and sellers, which is why understanding terminology is so important.  

As any writer would tell you, the words we use have power. Whether you’re a seasoned real estate professional or just starting out, the terminology you choose can make or break your relationships with clients, colleagues, and even those in your regulatory bodies. Today, we’re going to dive into the importance of using the correct terminology and clear up some of the most common misunderstandings because recognizing that the language you use can make or break your success.  

Pocket Listings vs. Exclusive Listings vs. MLS Listings 

Let’s start by setting the record straight on these terms. You may have heard them thrown around, but not everyone is clear on what they mean. When we don’t use these terms properly, we risk confusing clients and possibly even violating rules or laws. Here’s a breakdown: 

• Pocket Listings: A pocket listing is when an agent knows about a house for sale, is trying to sell it themselves, and they don’t tell any other agent, including the agents and their own office or their broker. 

• Exclusive Listings: This simply means that the seller has given exclusive rights to one brokerage to represent them. The key here is “exclusive,” but the listing can still be put on the MLS. If it’s not on the MLS, that’s when people start calling it a pocket listing, but remember, not all exclusive listings are pocket listings. 

• MLS Listings: This is the bread and butter of the industry. A Multiple Listing Service (MLS) listing means the property is available to any member of that MLS to show and sell. It’s the most transparent way to market a property, ensuring it gets the widest exposure possible. 

Let’s talk history for a moment. Years ago, the term pocket listing meant a listing where the seller didn’t sign any kind of agreement and would have essentially been considered a FSBO. The agent with that listing knows it’s for sale but doesn’t tell anyone (not even their own broker!) and tries to sell it themselves to get the whole commission for themselves. It’s in their pocket, hence the term “pocket listing.” This practice (and thus, the term) has gotten a bad reputation because agents who practice this behavior have integrity issues. They choose to hide their business for their own benefit, which is often detrimental to the homeowner. 

NAR, unfortunately, has taken to calling “exclusive listings” pocket listings to validate their agenda with the Clear Cooperation Policy that they created six years ago to force every homeowner onto the MLS. The more people can make money on listings, the more membership dues they can charge because their membership keeps growing. 

Professional vs. Salesperson

Here’s where I see a lot of agents getting caught up: Are you a salesperson or a real estate professional? The difference might seem small, but it’s monumental. 

A salesperson is focused on the transaction. They’re thinking about commissions, closing deals, and moving on to the next one. But a professional? That’s someone who sees their role as a long-term relationship builder. A professional is in the business of serving clients, not just selling to them. 

When you shift from being a salesperson to a real estate professional, you start building a reputation that goes beyond any one deal. Clients start seeing you as a trusted advisor. The terminology you use here impacts how people perceive you, so choose words that communicate professionalism and expertise.

Law vs. Rule

Here’s another one: What’s the difference between a law and a rule? 

• Law: This is what’s set by the government. Laws are non-negotiable. If you break a law, you could face legal consequences like fines, lawsuits, or even losing your license. 

• Rule: Rules, on the other hand, are often set by individual organizations—like your local MLS or brokerage. Rules can have serious consequences, too, but they don’t carry the same weight as laws. However, breaking a rule could lead to disciplinary action, and you may still lose business or reputation over it. 

The key takeaway? Know the difference, and make sure you’re always following both. It’s your responsibility as a real estate professional to stay educated on the laws and rules that apply to your business.

Professional Fee vs. Commission

Finally, let’s talk about Professional Fee versus Commission. This is one of my favorites because it’s about perception. 

A commission sounds like something you get for selling something—like you’re being paid just to close a deal. But a professional fee? That implies that you’re being compensated for your expertise, time, and the value you bring to the table. 

This small change in language can have a big impact on how clients see you. Instead of thinking of you as someone who’s just trying to make a sale, they see you as a skilled professional who is worth every penny of that fee. 

The Takeaway 

In this business, words are your tools. They’re how you communicate value, build trust, and create lasting relationships. Misusing terminology can lead to misunderstandings, missed opportunities, or worse. By educating yourself and your clients, you set yourself apart as a true professional. 

So, let’s commit to being intentional with our words. Let’s use the correct terminology and take our professionalism to the next level. Remember, you’re not just a salesperson—you’re a real estate professional. You’re a difference-maker, and the words you use can shape the success you create! 

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