If you are looking to buy a house, private listings can make a real difference in your search. If you are not seeing them, you are missing inventory and often finding out about homes after the serious buyers already have.
In this article, we’ll look at what private listings are, and why they matter in your search for a home.
What are Private Listings?
Before we talk about private listings, let’s start with public listings. You’re probably already familiar with public listings. These are the listings that are syndicated to sites like Zillow and Redfin.
Private listings are a different story. Many never show up on those sites at all.
So what are private listings? Think of private listings as word-of-mouth listings, or coming-soon listings that agents share with each other. Private listings are not private sales. In private sales, the seller and buyer work out an agreement without a real estate agent. Private listings, on the other hand, are entirely agent-driven. Sometimes referred to as “pocket listings” or “off-market listings”, private listings are listings that are shared agent to agent rather than launched to the general public.
There are many reasons why sellers may choose to list privately. Sometimes the timing for going public just doesn't make sense, or maybe the seller wants more privacy. The seller may want to inform the community that a listing is coming, but they’re not quite ready to show yet. Whatever the reason, serious buyers are typically the ones looking at private listings.
Some private listings eventually become public, but not all of them. So if you’re a buyer, you absolutely need to be plugged into private listings.
Advantages for Buyers Looking at Private Listings
If you are a buyer, there are two main advantages to looking at private listings: time and inventory.
Time
Having access to private listings can save you precious time during your home search. Finding out about private listings doesn’t always guarantee early access to the house. But it can be incredibly helpful to know what’s coming. If you know that the house will be coming on the public market soon, you can be totally prepared and ready to go when it does. You can do a drive-by, research the neighborhood, and get a pre-approval letter locked in all before you even walk into the showing. This kind of preparation gives you an advantage when the home does eventually go on the market.
Inventory
Sometimes houses are sold exclusively through private listings, and you would never have the chance to consider the home otherwise. A meaningful share of homes trade this way, and the share has grown as more sellers choose a quieter launch. If you are not looking at private listings, you are missing out on a huge amount of inventory, and you may overlook your perfect home.
How to Find Out About Private Listings
You’ll need to work with an agent to access private listings. And here’s our recommendation: find someone local.
Any agent can set you up with searches on the private listing networks, but only a local agent in the specific market you are targeting can be your on-the-ground expert. A local agent will be in-tune with the neighborhoods, the sellers, and the other agents in the community.
Think of your agent as a partner in your home-buying process. Your agent needs input and feedback from you, and in turn, your agent will help you find exactly what you’re looking for. That’s why it’s important to find an agent that you trust, and who will help you navigate through every step of the buying process.
All this expertise adds up to make all the difference in giving you a competitive edge when buying a home.
3 Ways to Look for Private Listings
Once you are connected with a real estate agent, there are 3 main ways to look for private listings. Your agent will be able to help you with each way, but here’s a breakdown of each:
1. The Private Listing Network
The private listing network, or PLN, is a section of the Multiple Listing Service (MLS) where agents can add listings without the listings getting syndicated to public portal sites like Zillow. The network is only visible to agents and their clients. Agents constantly monitor the PLN, and your agent can notify you when new listings hit the network. Some houses trade entirely through the PLN and never reach the public market. If you are a buyer, you need to be plugged into it.
2. Exempt listings
Exempt listings are exempt from the MLS and other listing services. These listings are represented by an agent, but are not advertised publicly or on the PLN. Agents typically find out about exempt listings through broker-to-broker networks.
3. Agent-to-Agent Relationships
These relationships are really where a local agent will make a huge difference in your home search. Local agents are on the ground talking with other agents to find out what is coming soon. These relationships are key to staying on top of the market and really understanding what is happening in the community. When your agent knows a house is coming on the market soon, they can let you know ahead of time so you can prepare.
Get Plugged into Private Listings
As we mentioned above, the best way to find out about private listings is to work with an agent. If you are looking to buy a home on the North Shore of Chicago, we would love to work with you. We are here to be your local on-the-ground experts, and we will help you navigate both public and private listings. Sign up for private listing alerts and we will get you connected.
