THE HIDDEN COSTS OF OFF-MARKET LISTINGS: FULL MARKET EXPOSURE IS KEY IN A SELLER’S MARKET

Off-market listings, also called "pocket listings" usually benefit the agent more than the home seller.

In today’s highly competitive real estate market, sellers hold the advantage. Low inventory and high demand mean homes are receiving multiple offers, often above asking price. Given these conditions, it may seem puzzling that some agents encourage sellers to consider off-market listings, also known as pocket listings. While there may be a few rare instances when selling off-market makes sense, in most cases, it benefits the agent far more than the seller.

What is an Off-Market Listing?

An off-market listing is a property that is sold without being publicly advertised on the Multiple Listing Service (MLS). Instead, the home is quietly marketed through private networks, word of mouth, or select agent connections. While this might sound exclusive, the reality is that it limits competition and, ultimately, the potential sale price.

The Downsides of Off-Market Listings for Sellers

1. Less Competition Means Less Money

   The key to maximizing a home’s value is exposure. When a property is listed on the MLS, it’s seen by thousands of buyers and their agents, generating competitive interest. Off-market sales significantly reduce the buyer pool, often leading to lower offers and missed opportunities for bidding wars.

   
   

2. Lack of Transparency

   The traditional listing process ensures fairness and transparency. Buyers make offers knowing they are competing against others, which encourages them to put their best foot forward. In off-market sales, sellers have no way of knowing whether they’re truly getting the highest and best price.

   
   

3. Potential for Ethical Concerns

   Why would an agent push an off-market sale in such a strong seller’s market? The unfortunate truth is that some agents prioritize their own interests over their clients'. By keeping a listing off-market, they may be attempting to double-end the deal (represent both buyer and seller), securing more commission for themselves while depriving the seller of true market value. A reputable agent will always advocate for open-market exposure to ensure their client gets the best possible outcome.

   
   

4. Appraisal and Financing Risks

   Without competitive market data from multiple offers, an off-market sale may lead to a lower appraised value. This can create financing challenges for buyers and potentially lead to a deal falling apart.

Are There Ever Good Reasons for an Off-Market Listing?

While full market exposure is almost always the best strategy, there are a few instances where an off-market listing might be appropriate:

• Privacy Concerns: Some sellers, such as celebrities or high-profile individuals, prefer to avoid public listings to maintain privacy.

• Distressed Sales: If a seller is in financial distress and needs a quick, discreet sale, an off-market deal could be a viable option.

• Pre-Listing Agreements: Occasionally, a seller may wish to test the waters with a trusted network before officially going on the market. However, this should be a temporary strategy and not replace full market exposure.

  
  

A Good Agent Advocates for the Best Outcome—Not Just Their Own Interests

A true professional will always prioritize their client's financial interests above their own. If an agent is recommending an off-market sale in a highly competitive market, it’s worth asking why. Are they truly looking out for you, or are they looking to double-dip on commission?

At the Sold by Stephanie Team, we believe in full transparency and market exposure because we know that’s what gets our sellers the best results. If you’re thinking about selling and want to ensure you get the highest possible price for your home, let’s discuss a strategy that works for you—one that puts your interests first. 

Reach out today to learn how we will help you navigate your home sale and maximize your home’s value!

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Stephanie Jones & her loyal assistant, Jake.

The agent you choose matters. With over two decades of dedicated service to Greater Boston, Merrimack Valley, and New Hampshire, Stephanie Jones brings unparalleled expertise and a proven track record of success to every transaction. Her intimate knowledge of these markets, combined with an unwavering commitment to client success, has made her a trusted name in New England real estate.