Deep Dive Podcast: Private Listings and Home Buyers
Private Listings and Home Buyers.
When you’re buying a home, you expect your real estate agent to help you find the best property for your needs, not just the ones that happen to be listed by their brokerage. But what if your agent or their broker is quietly steering you toward private listings that benefit them more than you?
The Hidden Pitfalls of Private Listings. What Home Buyers Need to Know About Steering
It’s a real issue, and one that could cost you money, limit your choices, or worse, result in legal problems down the road. Let’s break down what’s going on, why it matters, and how you can protect yourself.
What Are Private Listings?
A private listing (also known as an office exclusive or pocket listing) is a property for sale that is not publicly listed on the Multiple Listing Service (MLS). Instead, it’s marketed privately, often only to clients of the listing brokerage.
While these can sound exclusive or enticing, private listings bypass market competition. That means less exposure, fewer eyes on the property, and potentially inflated prices.
Why Steering Toward Private Listings Can Be a Problem
When a buyer’s agent shows you only homes listed by their own brokerage, especially private listings, they may not be working fully in your best interest. That’s called steering, and it can come with serious consequences.
Here’s why:
- Conflict of Interest
Agents have a fiduciary duty to act in your best interest. If they’re prioritizing their own brokerage’s listings, they may be putting their paycheck ahead of your needs. - You Might Overpay
Private listings aren’t exposed to the full market, which means there’s no competitive pricing pressure. Sellers can ask more, and buyers often have less leverage to negotiate. - Limited Inventory
If your agent is only showing you in-house listings, you’re missing out on better (and possibly more affordable) homes that are publicly available. - Lack of Transparency
Buyers may not realize they’re being steered unless they ask. If your agent isn’t disclosing the reason certain homes are being pushed, or why others are being ignored. That’s a red flag. - Legal and Ethical Risks
In some cases, steering may violate state laws, licensing rules, or even the Fair Housing Act, especially if decisions are influenced by the demographics of neighborhoods.
What You Can Do as a Home Buyer
Here’s how to take control of your home search and avoid being steered into a bad deal:
- Ask Directly: “Are there any financial incentives for you or your brokerage if I buy this home?”
- Request Full Market Access: Insist on seeing all available homes, not just private or in-house listings.
- Check the Listing Source: Is the property listed in the MLS? If not, ask why.
- Understand Dual Agency: If the brokerage represents both the seller and buyer, get full disclosure in writing, and know that your agent may be restricted in how much they can advocate for you.
- Consider Independent Representation: A buyer’s agent from a different firm has no stake in the listing brokerage’s sales and may be more focused on your best deal.
- Get Everything in Writing: From agency agreements to disclosures about who the agent represents, make sure you have documentation of all relationships and responsibilities.
Final Thoughts on Private Listings and Home Buyers
The home buying process is complex, but transparency should never be negotiable. If you feel you’re not getting the full picture, it’s okay to pause, ask hard questions, or even switch agents. The right home, and the right deal, starts with representation you can trust.
By Dan Krell
Copyright © 2025
Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.