Private Listings and Home Buyers

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.

Homes for sale.

April 28, 2025April 28, 2025

Private Listing – What you need to know

Deep Dive Real Estate Podcast – Private Listings

The Truth About Private Listings: Why Sellers Should Think Twice

In today’s competitive real estate market, sellers are constantly looking for an edge. One tactic that’s often pitched as exclusive and elite is the private listing—also known as a pocket or off-market listing. While it might sound appealing on the surface, this sales model could actually hurt sellers more than it helps. And it has the potential to raise red flags when it comes to fair housing.

What is a Private Listing?

A private listing is a property that is for sale, but not listed on the Multiple Listing Service (MLS). Instead, it’s quietly marketed by a real estate agent to a small group of select buyers or investors, often within their own network or brokerage. The general public and even other agents may never know the home is available.

Sellers are sometimes told this strategy will protect their privacy, generate a sense of exclusivity, or attract high-end, cash-ready buyers. But the truth is, private listings come with serious downsides—especially for the seller.

What’s the Potential to Hurt Home Sellers?

1. Limited Exposure = Limited Offers

The MLS is where most buyers—and their agents—go to find homes. Not listing your property there drastically reduces its visibility. With fewer eyes on the home, sellers are less likely to get multiple offers or competitive bidding that drives up the price.

2. Potentially Lower Sale Price

When fewer people know your home is for sale, you’re far less likely to achieve top dollar. Data consistently shows that homes listed on the MLS sell faster and for more money compared to those sold off-market.

3. Reduced Transparency

The private listing model makes it harder to verify whether a seller truly got the best deal. Without an open and competitive market, there’s no way to know if the offer that was accepted was really the strongest one available.

Potential Legal and Ethical Gray Area

Perhaps even more concerning is how private listings can intersect with issues of fair housing and discrimination.

Exclusion by Design – Private listings can limit access to a home to a small, curated group—often based on an agent’s personal or professional circle. This process can unintentionally (or intentionally) exclude qualified buyers, particularly those from minority or underrepresented communities.

Fair Housing Act Implications =The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, or familial status (state and localities have additional protected classes). While private listings aren’t illegal on their own, if they result in exclusionary practices or disparate impact, they could violate federal or state housing laws.

Final Thoughts

As a home seller, it might sound enticing to keep things quiet and “exclusive,” but a private listing is more likely to hurt your bottom line and limit your home’s potential. Beyond the financial risks, there are also serious questions of fairness and equity.

In real estate, exposure equals opportunity. If you’re thinking of selling, don’t keep your home a secret—give it the platform it deserves. Open marketing through the MLS ensures your property reaches the widest audience, invites healthy competition, and stands up to both ethical and legal standards.

If you’re curious about how to get the most out of your home sale—or you’ve been pitched on a private listing and want a second opinion—reach out to a trusted real estate professional. A transparent, ethical, and results-driven sale is always in your best interest.

What’s your home worth?

By Dan Krell
Copyright © 2025

November 1, 2013November 23, 2021

Private, pocket listings surge during housing recovery

The recovering housing market has brought to light the controversial practice of the pocket listing. Although pocket listings are more common in the upper bracket and luxury real estate market, pocket listings tend to increase during hot markets when there are few available listings and increased home buyer competition.

by Dan Krell © 2013

Sometimes called “off-market” listings, or “private” listings, the pocket listing is a home sale that is not openly marketed in the multiple list service. The listing is kept “quiet” and is only known to the listing agent and/or broker who typically market the home to a select network of contacts and clients.

Pocket listings are common among the utra-wealthy because of privacy concerns; anonymity is an often cited reason for a home seller to choose to have a pocket listing, typically because the seller has some celebrity status. Private listings may also be promoted as a way to limit home viewings to those who are financially qualified to purchase the home; the focused buyer pool reduces the number of showings, which may be less disruptive to the seller’s daily schedule.

However, critics of pocket listings often point to MLS concerns, dual agency issues, and housing laws as reasons to be wary of the practice. Agents are not the only ones who have access to an MLS listing; MLS listings are often syndicated throughout the internet and available for anyone with internet access to see. Clearly, one of the obvious issues of a pocket listing is the reduction of marketing exposure that is lost from not having an MLS entry. Another issue that arises from a pocket listing is that it skews home sale and price data that appraisers use for valuations.

Consumer Advocates in American Real Estate (caare.org) cites the possibility of dual agency (where the buyer and seller’s agent is from the same real estate company) as a major concern for pocket listings. Because dual agents do not act exclusively in the interests of either the seller or buyer, the possibility of a conflict of interest may arise. Additionally, CAARE states that a seller who agrees to a pocket listing may exclude 70% or more of qualified buyers who are actively searching for homes.

A recent Maryland Real Estate Commission newsletter (The Commission Check; Summer/Fall 2013), reprinted an article from the August 2013 ARELLO® Boundaries discussing pocket listings, that stated; “pocket listings may run afoul of federal fair housing laws that not only prohibit readily apparent or intentional housing discrimination against protected classes, but also practices that have a “discriminatory effect” that “… actually or predictably results in a disparate impact on a group of persons or creates, increases, reinforces, or perpetuates segregated housing patterns because of race, color, religion, sex, handicap, familial status, or national origin…”

Unbeknownst to some home sellers, their home sale may be marketed as a pocket listing during the period between the signing of listing paperwork and when the home is entered into the MLS. Although this time is often used to prepare a home for sale; it may also be privately marketed by the listing.

Although the National Association of Realtors® has “not defined what constitutes a pocket listing, nor do they have an official policy regarding the practice” (“What is a Pocket Listing”; Realtor Magazine, May 2013); potential housing law issues and ethical concerns of pocket listings should be addressed with your real estate agent/broker.

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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. This article was originally published the week of October 28, 2013 (Montgomery County Sentinel). Using this article without permission is a violation of copyright laws. Copyright © 2013 Dan Krell.