Private Listing Networks are Damaging the Housing Market, Harming Buyers, Sellers and Agents

Transparency and equitable access to real estate listings are at risk due to the rise of private listing networks, or "pocket listings." These private networks, which are accessible only to exclusive groups of agents, harm,buyers, sellers and agents. According to Zillow research, homes sold off the MLS typically yield significantly less money for sellers – sellers who didn’t market their listing on the MLS left more than $1 billion on the table in 2023 and 2024.

For buyers, private listing networks mean limited options and potential loss of their dream home. Almost 91% of buyers believe they should have free access to all listings, but private networks often require buyers to work with specific agents, locking them into agreements before they see the inventory. This can lead to a disadvantageous situation for buyers and increase the risk of dual agency, where the same agent represents both the buyer and the seller, potentially compromising the transaction.

Large brokerages touting the benefits of private listing networks are the only party that stands to gain by proliferating these “velvet rope” clubs. Agents working within these organizations are often coached to push private listing networks as an exclusive marketing tactic without proper education about their negative impacts to the clients they serve.

Zillow is advocating for listing transparency to support a fair and equitable housing market. To learn more about this critical issue and how it affects the real estate market, read the full story on Zillow's blog: https://www.zillowgroup.com/news/private-listing-networks-are-damaging-the-housing-market/