There is a growing trend in the real estate industry that puts sellers at a serious disadvantage: private, or “off-market,” listings. 

While many brokerages promote private listings as a premium service, sellers are being misled by sacrificing maximum exposure and higher offers in exchange for a strategy that primarily benefits the brokerage and agent. 

Brokerages are positioning private listings as exclusive or strategic, but let’s be honest, they’re usually a way to control both sides of the deal. Less exposure means fewer offers. Fewer offers mean a lower sale price. That’s not in the seller’s best interest. 

Private listings have become especially common in the luxury real estate market, where discretion is sometimes necessary for celebrity clients, executives, or high-profile individuals. In rare cases, extreme privacy is critical, and brokerages should be equipped

 to handle those situations with precision. 

However, for the majority of sellers, even in the high-end space, private listings come with serious drawbacks. 

Most sellers don’t realize that over 75% of luxury home sales are made by agents from outside and random brokerages. If your home isn’t on the open market, you’re potentially missing out on the majority of qualified buyers. That’s a massive risk. 

Some agents will quietly sell a property off-market, then enter it into the MLS just before closing to claim credit. They want the appearance of exposure without actually giving the property the benefit of real market competition. This is clearly more about the agent than it is about the client. Seller beware! 

At huntington & ellis, private listings are still an offering but not encouraged. If they’re being done, they’re done with full transparency. 

It is important to educate clients on all their options, including off-market, and explain the consequences clearly. If your goal is top dollar and the best terms, then I will always recommend full market exposure. That’s how you get results. 

My message is simple: Don’t fall for the marketing spin. Ask questions. Demand exposure. Protect your equity! 

Craig Tann is the founder of huntington & ellis, A Real Estate Agency.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the editor responsible for this piece: zeb@hwmedia.com.

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