By Colleen Barry, Chief Executive Officer, Gibson Sotheby’s International Realty
When I began my real estate career in 2002, it was prior to the democratization of property data on the internet. At that time, information was hard to come by—buyers had to rely on real estate agents or call individual brokerages to find out if there were any properties available that suited their needs. Agents were the “gatekeepers” of critical market knowledge.
That changed with the advent of Multiple Listing Services (MLSs) sharing their data with third-party platforms like Zillow, Realtor.com, and local news websites. For the first time, consumers had the ability to view all available listings that fit their search criteria in one place—ushering in a new era of transparency.
Now some forces within the real estate industry are seeking to turn back the clock, and they are doing it under the guise of private listings.
What are private listings?
The word “private” can bring to mind a lot of appealing things, such as “private stock” champagne or “private way” for secluded properties. But, “private listings” are something different entirely. They reduce exposure and competition in the sale of a person’s most valuable asset.
Why use the MLS?
The benefit of the MLS is to transparently share information, not only between real estate professionals, but also with consumers. This means that buyers can find what they are looking for and easily compare like-kind properties. It also means that sellers can rest assured that the sale price of their property was the most a buyer was willing to pay for it.
When real estate companies promote private listings, they undermine the advantages of an open market—concealingavailable properties and limiting access for buyers. For sellers, this approach introduces significant risks: potentially lower sale prices, extended time on market, and increased vulnerability to Fair Housing violations. In the short term, both buyers and sellers lose. But the long term consequences are equally concerning, as the growing prevalence of private inventory threatens the integrity of market data, making it more difficult to accurately price and analyze future sales.
Who benefits from private listings?
If neither the buyer nor the seller stands to benefit from a private listing, then who does? In many cases, it’s the listing agent and their brokerage who gain a greater opportunity to sell the property to their own clients—effectively capturing both sides of the transaction. This practice may increase market share for the firm, but it does so at the expense of consumer choice and transparency, introducing a clear conflict of interest.
When do private listings make sense?
On rare occasions, a seller may choose to prioritize privacy over achieving the highest possible sale price. This might occur in sensitive situations—such as divorce or the discreet sale of a business—or when a specific buyer, like a developer, is uniquely motivated to pay a premium to acquire an adjacent property. While there are circumstances where a private listing may be appropriate, sellers must carefully weigh those priorities against the potential risks, including the loss of tens or even hundreds of thousands of dollars. Consumers, too, should be mindful of the broader implications, as a return to limited access and agent-controlled information threatens the progress made toward transparency and fairness in the market.
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