How Much Are You Losing With A Private (Pocket) Listing?
In an ever-competitive real estate market, sellers often hear about “pocket listings” as a way to sell quietly and discreetly. A pocket listing is a property that’s for sale but not publicly marketed or listed on the Multiple Listing Service (MLS). It may only be shown to a select few buyers through an agent’s private network.
While it can sound appealing—especially for those who value privacy or want to avoid the hassle of open houses—pocket listings often come with hidden costs. And in most cases, they don’t serve the seller’s best interest.
Here’s why:
Fewer Eyes = Fewer Offers
Real estate is a numbers game. The more qualified buyers who see your home, the greater the competition—and the higher the potential sale price. When your home isn’t exposed to the open market, you're essentially removing the possibility of a bidding war. That can mean leaving tens of thousands of dollars (or more) on the table.
Many buyers are emotionally driven and competitive. When they see others vying for the same property, they often increase their offers and reduce contingencies. Without that dynamic, you're relying on one offer—maybe two at best—and losing the momentum that drives up value.
Sellers Lose Nearly $5K Per Home
Zillow Research (2023–2024) found that homes sold off-MLS—like pocket listings—typically fetched $4,975 less, a 1.5% drop, compared to those listed on the MLS wsj.com+15zillow.com+15realestatenews.com+15.
In high-cost states like California, the median loss was even more dramatic—3.7%, or about $30,075 per home
You Lose Market Feedback
Going to market gives you a critical early read on buyer sentiment. If you're overpriced, the market will tell you. If your home has standout features, buyers and agents will notice and respond accordingly. With a pocket listing, you lose that feedback loop—and the chance to adjust quickly if needed.
Without broader market input, you’re operating in a vacuum, relying solely on the opinion of a few buyers rather than letting real demand determine your home’s true value.
Potential Fair Housing Pitfalls
Pocket listings can raise serious fair housing concerns. By limiting exposure to a select group, you may inadvertently restrict access to a diverse pool of buyers. In fact, this issue has attracted regulatory attention, and some industry groups—including the National Association of Realtors—have implemented policies discouraging the use of pocket listings unless there’s a compelling reason.
Less Leverage in Negotiation
With limited competition, buyers know they don’t need to compete aggressively. They’re more likely to offer below asking, request concessions, and maintain contingencies—because they’re not worried about being outbid.
Contrast this with a well-marketed home that receives multiple offers: buyers will often stretch their budget, shorten contingencies, or even submit all-cash offers to win. As a seller, that puts you in the driver’s seat.
Missed Historical Pricing Data
When your home isn’t listed on the MLS, it doesn’t create a public sales record. That can make it harder for future appraisers, agents, and buyers to understand the value of your home (or neighborhood). If and when the buyer resells, the lack of comparable sales data may hurt their value—and by extension, your area’s perceived value.
So, When Is a Pocket Listing Justified?
There are rare cases when pocket listings make sense—such as for high-profile clients who require discretion, or for off-market investment deals. But for the average homeowner looking to sell for the highest price with the least amount of risk, full market exposure is still the best route.
The Bottom Line
Selling your home is likely one of the most significant financial decisions you’ll make—and while an off-market sale might seem easier or more discreet, that convenience can come at a serious cost.
Even in the luxury space, where the average impact appears smaller (just –0.4%), that still translates to tens—or even hundreds—of thousands of dollars in missed potential. In high-demand areas like Sonoma County, the difference can be even more pronounced.
Listing your home on the MLS ensures maximum exposure, drives buyer competition, and strengthens your negotiating position. These elements consistently lead to stronger offers and better terms.
If you're thinking about selling—or weighing a private sale—let's connect. With a strategic marketing plan tailored to your home, I’ll help ensure no opportunity is left on the table.
