Every so often a client asks us about a house that sold on their street without a sign, an open house or a listing online. That is a private sale, sometimes called an off-market or pocket listing. They are less common than people think, but they do happen, especially at the top of the market and with sellers who value their privacy.
What counts as a private listing
A private listing is a home that is for sale but is not entered into the local multiple listing service (MLS) and is not advertised to the public. The listing agent shares it quietly with buyers and agents they know, often with a few photos and a price, and arranges viewings by appointment only.
There is also a middle ground. Some homes are listed in the MLS but marked as "coming soon" or "office exclusive" for a short period before full public marketing starts. The rules for this vary between MLS areas, and the National Association of Realtors has changed its policies on it more than once in recent years, so ask the agent which category a home falls into.
Why sellers choose to sell privately
- Privacy. Well-known owners, or anyone going through a divorce or a family loss, may not want photos of their home online.
- Testing a price. A seller can see how buyers react to a number before committing to it publicly, without the house building up "days on market".
- Convenience. Fewer viewings, no open houses and no strangers walking through.
The trade-off for sellers
The obvious downside is reach. A home that only a few dozen people know about is less likely to attract the one buyer who would pay the most for it. Studies by listing platforms and brokerages have suggested that homes marketed publicly tend to sell for more, though the homes in these studies are not always comparable. If you are a seller, ask your agent to explain plainly what you may be giving up, and agree a date at which the home will go on the open market if the right offer has not arrived.
How buyers hear about them
Private listings move through relationships. Agents who sell regularly in a neighborhood hear about homes before they are listed, and they share them with buyers who are ready to act. That is why we ask new buyers to tell us exactly what they want, including the things that would make them move quickly. If a home comes up that fits, we can call you the same day.
It also helps to be prepared. Sellers in a private sale usually want a buyer who can show proof of funds or a lender's pre-approval, who can view at short notice and who understands the area. A buyer who has already seen several homes nearby, and knows what they are worth, is in a much stronger position.
Questions to ask before you make an offer
- Why is the seller selling privately, and how long do they plan to keep it off the market?
- Has anyone else seen the house, and have there been offers?
- Which recent public sales nearby are the best comparison for price?
- Are the usual disclosures and inspection reports available, just as they would be for a public listing?
A private listing should not mean less information. In California and Florida, sellers still have the same legal duties to disclose known problems, and you still have the right to inspect. If an agent is reluctant to share the paperwork, take that as a warning sign.
Our approach
We will tell you when we know of a home that is not publicly listed, and we will tell you if we think a public sale would serve a seller better. Either way, the price should be backed by recent sales, and you should never feel rushed past the normal checks.
