pocket commission

Definition

The extra compensation an agent receives when representing both buyer and seller, also called double-ending. Twice the work or twice the conflict of interest, depending on who you ask.

Example Usage

By keeping it a pocket listing and finding the buyer herself, the agent earned a pocket commission of 6%, proving that limited exposure can be very profitable—for the agent.

Origin

Emerged from dual agency practices in real estate brokerage

Fun Fact

Some brokers prohibit dual agency entirely due to ethical concerns, while others embrace it as efficient capitalism, making it real estate's most contentious practice.

Source: Real estate brokerage commission terminology

Related Terms

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Price Point

A fancier way of saying "price" that makes real estate agents feel like they're doing economics instead of sales. It adds absolutely nothing to the conversation except an extra word and a sense of sophistication.

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lease option

A rent-to-own arrangement combining a rental lease with an option to purchase, letting tenants test-drive homeownership while locking in a future price. It's dating-before-marriage for real estate, popular when buyers can't qualify for financing yet.

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Lot Size

The amount of land your property sits on, which matters a lot until you realize most of it is a setback you can't build on anyway. It's the real estate equivalent of buying a large popcorn that's mostly air.

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Advanced

subordination agreement

A contract where one lien holder agrees to take a backseat to another in the priority line for getting paid if things go sideways, voluntarily accepting second-class status. It's cutting in line, but in reverse and with lawyers involved.

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remortgage

The financial equivalent of a do-over, where you replace your existing mortgage with a new one, usually to snag a better interest rate or release equity you've built up. It's like refinancing's British cousin—same concept, fancier vocabulary. Homeowners often remortgage when their initial deal expires or when they need cash for renovations, though banks will happily charge you fees for the privilege of switching.

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