Off Market Listings are Bad for You.
Zephyr Real Estate conducted a study comparing MLS-marketed and off-market homes and found that single-family homes sold for an average of 17% higher in 2013 when marketed on MLS. This is consistent with other studies that have found that off-market “pocket listings” actually fetch a lower sales price, on average, than properties marketed on MLS. Greedy listing agents love off-market listings as it allows them to pocket all of the commission, as there is no buyer broker to share it with. Although many agents don’t care how they harm their clients as long as they enrich themselves, some – like Patrick Barber (president of San Francisco Association of REALTORS®) opposes it, as exposing a property to a limited market eliminates competition and does not yield the best terms and price. Like me, he believes that is contrary to our fiduciary duty to obtain the best deal for our seller clients.