Private listings, a strategy once reserved for high-profile sellers, are gaining traction among major real estate firms in New York City.
These exclusive listings, often referred to as pocket listings or private exclusives, have arisen as a solution for sellers who seek to maintain their privacy or test the market with an aspirational price.
Recent shifts from firms like Compass indicate a broader acceptance among sellers who might be facing personal situations that necessitate discretion, such as caregivers or couples undergoing divorce.
However, not everyone is in favor of this approach.
Various real estate firms, listing sites, and consumer advocates argue that private listings diminish transparency and competitiveness in the market, potentially leading to violations of Fair Housing regulations.
The debate has intensified, particularly in New York City, as sellers and buyers grapple with the implications of this trend.
Why are private listings becoming increasingly popular?
Compass, one of the largest brokerages in the U.S., has unveiled a three-phase strategy aimed at sellers that prominently features private listings.
In the initial phase, properties are listed privately for buyers represented by Compass agents only.
The second phase transitions the listing to a “coming soon” status, making it available only on Compass.com.
The final stage involves full public marketing on a multiple listing site (MLS), specifically the REBNY Residential Listing Service (RLS) for New York City properties.
According to Compass, in February 2025, 55% of their listings commenced as either Private Exclusives or Coming Soon listings nationwide.
Data from Compass suggests that properties pre-marketed as Private Exclusives command an average close price that is 2.9% higher and tend to receive accepted offers about 20% faster than those listed on the MLS.
Additionally, they report that these listings are around 30% less likely to experience price reductions once they hit the market.
Compass asserts that their private listing strategy helps counteract negative online information, such as excessive days on the market or price cuts, which buyers often struggle to interpret effectively.
Agents with experience in the market confirm that private listings can serve various strategic purposes.
Abby Palanca, a broker at SERHANT, highlights that she often uses private listings as a tactic to gauge market reactions and determine an appropriate pricing strategy.
Using a recent example, Palanca mentioned representing a buyer who was initially interested in a private exclusive but still encouraged the seller to take the listing public to maximize exposure and potential bids.
Anna Klenkar, who operates her own brokerage, shared a recent listing experience where a seller opted for a private approach at an unrealistic price to test market interest.
As anticipated, if the property does not sell while the tenants are still in place, it will eventually be listed publicly once the property is well-prepared for showings.
Conversely, some buyers express frustration over being blocked from accessing private listings, highlighting potential issues of fairness and transparency.
One anonymous buyer from the NYC suburbs recounted their disappointment when they were informed that they could not view a property without joining the listing agent’s exclusive buyers network, feeling that this practice might not align with the seller’s best interests.
In response to the growing trend of private listings, significant pushback has emerged from other real estate firms as well as major listing sites.
For instance, CEO Bess Freedman of Brown Harris Stevens has been vocal about her opposition to exclusive networks, stressing the importance of broad market exposure in real estate transactions.
Her concerns were mirrored by Mark D. Friedman, another agent at the same firm, calling the practice of selling privately “antithetical” to the proper marketing of properties.
In a bid to promote transparency, Zillow and Redfin have responded by banning listings marketed through private networks on their respective platforms.
Zillow’s new policy, effective May 1st, stipulates that listings marketed directly to consumers without MLS submissions will be excluded from the site, based on the belief that every buyer should have access to all properties.
This action coincided with the National Association of Realtors reaffirming its existing policy mandating that properties must be listed on MLS within a day of starting public marketing.
Redfin similarly implemented a ban on its platform for listings that have been publicly marketed before appearing on MLS.
In the context of New York City, the approach to private listings differs somewhat from national standards.
REBNY has established four distinct ways to market a property on the RLS: active standard status, coming soon, participant only, and opt-out.
Active standard status allows wide exposure among all REBNY members, while coming soon status is intended for properties not yet ready for showings, lasting up to 14 days before accruing days on the market.
Participant only status is for listings kept off the public domain but shared selectively within the RLS, which does not count days on market.
Finally, the opt-out option enables owners to refrain from sharing their property through RLS altogether with strict limitations on public marketing.
Sellers need to be aware that StreetEasy, a key real estate listing site in NYC, has its own policy requiring all listings to be posted within 24 hours if they were made available for public advertisement.
When it comes to navigating private listings, both sellers and buyers have specific questions they should consider.
For sellers contemplating a private listing, questions could include: How do you plan to market my property? Do you frequently handle private exclusives?
And does this strategy align with my goals for selling? Is this a temporary approach to check pricing or a reflection of unrealistically high expectations on my part?
Additionally, sellers might inquire how the broker intends to share the listing with a broader audience and how an exclusive listing might influence competitive bidding opportunities.
On the buyer’s side, particularly if asked to join a private buyers’ network, essential questions include: How can I be certain I’m aware of all possible listings within my budget?
How does your brokerage manage available properties categorized as private listings? And will these listings be transitioned into the public domain?
Before proceeding with any agreements, it’s advisable for potential buyers to seek the guidance of a real estate attorney early in the process.
Legal expert Shaun Pappas recommends that engaging an attorney sooner rather than later can help navigate unfamiliar contracts and ensure buyers are fully informed before making decisions.
While there could be an additional cost associated with hiring an attorney, many offer flat-rate fees and can provide invaluable support in the marketplace.
In summary, as the landscape of private listings evolves, both sellers and buyers in New York City should approach this trend with caution, prioritizing transparency and informed decision-making.
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