Real Estate Off-Market Real Estate: Pros, Cons, and Current Trends

by Rachael Quisel

When it comes to selling your home, broadcasting it to the entire online real estate world isn’t your only option. Some prefer off-market or “pocket” listings – a discreet alternative gaining traction in our tight real estate market. From privacy to exclusivity, there can be a number of reasons why a seller or buyer may seek an off-market listing. These private listings, often shared through word-of-mouth referrals, have seen a rise in popularity as limited supply drives the demand. Since these sales do not always get reflected in data trends, it can be hard to track their exact impact. But how do these listings operate? What are the legalities? And what do these off-market listings mean for sellers and buyers?

[Cristal] Clarke suggested that the current focus on off-market houses might stem from the bias created by the scarcity of inventory. With fewer options available, any movement, whether on or off the market, garners increased attention.

Off-Market Specifics

First, let’s look at what the policy is on pocket listings, as well as other distinctions like an “office exclusive” or a “coming soon” offering that can be enacted when listing a home off-market.

Clear Cooperation Policy

In professional circles, “pocket listings” have become something of a dirty word. That’s due at least in part to the 2020 introduction of the National Association of Realtors’ (NAR) Clear Cooperation Policy (CCP).

According to this policy, agents are required to post a listing on the Multiple Listing Service (MLS) within one business day of marketing it to the public. Public marketing includes putting information up on signs, websites, social media, written and verbal communications (ex: phone, email, text), multi-brokerage or franchise listing sharing networks, and open houses. However, direct inquiries from other agents to the listing agent aren’t considered public marketing.

Opinions on the impact of the CCP differ. While some argue that off-market sales have significantly decreased, others believe that market conditions have driven up off-market transactions despite the policy, as there are still alternative, legal ways to market a property without marketing it to the open market. To shed light on this matter, we sought insights from industry insiders who offer diverse perspectives.

Office Exclusives

Sellers can choose for their agent to hold their property as an “office exclusive” to bypass mandatory MLS submission. This allows them to limit promotion to internal channels only within their brokerage, communicating only with affiliated licensees and their respective clients. However, as Berkshire Hathaway agent Cristal Clarke points out, sharing off-market listings is restricted beyond the brokerage. “You can share information within your own company, but not with others,” Clarke says. “But sometimes people hear about off-market properties.”

Coming Soon

A number of Multiple Listing Services have adopted “coming soon” statuses and

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