If you’re planning to sell your home in 2025, there’s a critical real estate practice you need to understand: private listings, also known as pocket listings or office exclusives. While some brokers may push this strategy, it often comes with significant risks that could cost you time, money, and peace of mind. In this post, I’ll break down what private listings are, the potential pitfalls, why some brokerages promote them, and one rare scenario where they might make sense. Let’s dive in!
What Is a Private Listing?
A private listing is when a property is marketed and sold without being listed on the Multiple Listing Service (MLS) or public platforms like Zillow, Realtor.com, Redfin, or Homes.com. Instead, the listing is kept within a brokerage’s internal network or shared only with a select group of buyers or agents. While this might sound exclusive or strategic, it can severely limit your home’s exposure to the market.
The Risks of Private Listings
A seller advisory form from a major brokerage (shared publicly by EXP Realty, though I’m not affiliated with them) outlines the dangers of private listings. Here are the key risks every seller should know:
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1. Limited Buyer Exposure
When you opt for a private listing, your property isn’t exposed to the full pool of qualified buyers. The MLS and public portals connect your home to thousands of realtors and millions of potential buyers. Without this exposure, fewer people know your home is for sale, which means less demand and fewer offers. As the advisory states, “Reduced market exposure comes with reduced visibility, and reduced visibility comes with reduced demand for your property.”
2. Financial Risks
Limited exposure leads to less competition, and less competition often translates to a lower sale price and less favorable terms. The advisory is blunt: “Reduced competition means you lessen your chances of receiving the highest sales price and best terms for your property.” In my experience tracking the Portland, Oregon market, homes sold through private listings often fetch a lower price per square foot. For example, I saw a property in Beaverton sell for $95 per square foot less than it likely would have on the open market. That’s money left on the table!
3. Longer Time on the Market
Properties with limited exposure tend to sit on the market longer. This can disrupt your plans to sell quickly and for top dollar. The advisory notes that longer market times “may adversely impact or otherwise frustrate plans to sell your property for the highest price and best terms within the shortest period of time.” In contrast, listing on the MLS exposes your home to a vast network of realtors and buyers, increasing the likelihood of a faster sale with better offers.
4. No Public Portals
By withholding your listing from platforms like Zillow or Redfin, you’re missing out on the most popular channels where buyers search for homes. This drastically reduces your pool of potential buyers and can negatively affect your net proceeds. As a seller, your goal is to maximize the equity you’ve built over years of ownership and improvements. A private listing risks undermining that goal.
Why Do Some Brokerages Push Private Listings?
You might be wondering why some brokerages encourage private listings if they’re so risky. The answer comes down to their business model. Large brokerages often prioritize attracting and retaining realtors to grow their revenue. One way to do this is by offering “exclusive” opportunities, like private listings, to keep deals within their network.
This practice can lead to double-ending, where the same brokerage represents both the seller and the buyer. By keeping the listing private, they avoid sharing the deal with outside agents, effectively closing two transactions (seller and buyer sides) for themselves. While this is legal in many cases, it can raise conflict of interest. The brokerage may prioritize its own profits over getting you the best possible offer.
In my opinion, this approach is shady and disadvantages both sellers and buyers. Sellers lose out on maximum exposure and competitive offers, while buyers working with smaller brokerages may never even see these listings. This closed-market mentality could also violate fair housing rules or antitrust laws by limiting access to properties, potentially opening the door to lawsuits.
The Bigger Picture: A Threat to Small Brokerages
As an independent broker in Portland, Oregon, I’m concerned about the broader implications of private listings. If this trend continues, small brokerages could be squeezed out of the market. The real estate industry would become dominated by a handful of large firms controlling exclusive listings, much like what we see in commercial real estate. This isn’t good for consumers or competition.
To survive, small brokerages like mine would need to dominate niche markets—like securing every listing in a specific neighborhood. But that’s not a sustainable or fair solution. The best outcome for consumers is an open market where listings are accessible to all buyers and agents.
When Does a Private Listing Make Sense?
There’s one scenario where a private listing can work: when you’ve already found a buyer. For example, imagine your neighbor Sue has lived in her home for 35 years. John, who lives across the street, approaches her and says, “My mom wants to move next door. We’ll pay top dollar for your house.” In this case, a private listing (or “one-party listing”) might be appropriate.
However, even in this situation, transparency is critical. As Sue’s seller’s realtor, I’d give Sue a home valuation by using most recent comparable sold homes to ensure John’s offer is competitive. I’d also warn her: “If you list on the open market, you might get a better offer. Are you sure you want to sell to John for this amount?” Sue needs to understand the financial risks and make an informed decision. Only then would I facilitate the transaction. Anything less would be a disservice to her.
My Advice: Always Choose the Open Market
Private listings sound appealing—brokers might promise a “discreet” sale or claim they’ll “test the market” without public records showing price reductions and DOM (Days On Market). But the reality is, you’re almost always better off listing on the MLS and public portals. The data backs this up: open-market listings attract more buyers, generate more competition, and result in higher sale prices and faster sales.
As a consumer, you deserve transparency and the best possible outcome when selling your home. Be wary of brokers who push private listings without fully explaining the risks.
If you’re in the Portland, Oregon area and have questions about selling your home, feel free to give me a call at 503-515-4499. I’m here to help you navigate the market and make informed decisions.
Final Thoughts
The real estate market should be open and accessible to all. Private listings, while tempting for some, often prioritize brokerage profits over seller success. By understanding the risks—limited exposure, lower sale prices, longer market times, and missed opportunities—you can make a smarter choice for your home sale.
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Shawn Yu is an independent real estate broker based in Portland, Oregon. This post is based on a recent episode of the Shawn Realty Podcast. For personalized advice or inquiries, contact Shawn at 503-515-4499.
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