“Have you ever noticed how some expressions start off meaning one thing but somehow take on a life of their own?” asks Suzy Minken rhetorically. A Compass star agent from Short Hills, New Jersey, she studies the industry closely. “That’s exactly what’s happening with the term ‘off-market’ in real estate. I’ve seen this term tossed around in the media with a bit of negativity. The result? Lots of confusion.”
Minken notes that in real estate, to say that a property is “off-market” is to indicate the status of a property as being “off” the market, while in the traditional sense, a property is “off” the market when it gets sold, or when it is no longer available to be shown because it is under contract.
Within the industry, the debate over private listings, the Clear Cooperation Policy and various other types of delayed or limited marketing is raging. But what it actually looks like on the ground—and what the average buyer and seller are hearing—is a totally different story. Terminology is the first thing that can confuse buyers and sellers, whether they are talking to an agent who is being careless with their language, or reading a news article.
“A property might also be considered ‘off’ the market when it is either temporarily or permanently ‘withdrawn’ from the market,” Minken says. “This might happen, for example, when it’s the holidays and sellers want to temporarily take their home off the market so they can enjoy time with family and friends. And sometimes, a property is permanently withdrawn because the seller chooses to no longer sell their home. Alternatively, it could be that the home is not getting any offers and the seller decides to go with a different agent.
“A home might also be ‘off’ the market when the term of the real estate listing agreement has expired, for example, after six months. For these reasons, a property that is ‘off’ the market may be viewed as an ‘off-market’ property.”
Terms like “private listing” or “pocket listing” also might be used interchangeably, but have very different definitions. Beyond that, different agents have different takes and different understandings of how they perceive off-market homes. There is no pure right or wrong.
“I focus on the properties that are fully listed,” says Pam Rosser Thistle, an agent with Berkshire Hathaway HomeServices Fox & Roach, REALTORS® in Philadelphia. “This shows commitment. Sometimes, sellers using the off-market approach are more curious than serious about selling.
“I understand that off-market has its place for privacy, if someone is very ill or dying in a bedroom in the home or other special circumstances. As a standard practice, I believe it excludes underrepresented groups from the home-buying process, which is already difficult for many. My preference is full exposure in most cases. It’s better for the seller.”
Minken emphasizes that to understand how the “off-market” properties term has evolved, it is essential to first recognize that there are multiple markets, or channels, of residential real estate property for sale.
In a post on her LinkedIn page, Minken sought to break down the different avenues that homes can go on the market:
- Multiple Listing Service (MLS)
For many REALTORS®, the traditional place to identify residential properties that are for sale is to go to the website of the local Multiple Listing Service (MLS). The MLS then feeds this data to a multitude of public sites. This is how the property data is accessible on numerous websites across the internet.
- For Sale by Owner
Some homeowners may prefer to begin their home-selling journey alone, without representation. These sellers often list their own home on various internet sites as a FSBO (For Sale by Owner). Anyone who is house hunting can find this additional layer of housing inventory by checking out FSBO properties. These properties are “on the market,” but simply not sourced by the MLS.
- New construction: For sale by builder
There are a number of builders who focus on developing new communities comprising single-family and/or attached homes and townhomes. For new construction developments, the builders frequently have a dedicated marketing team that advertises these homes for sale directly to the consumer, creating yet another layer of housing inventory not sourced by the MLS, but considered “on the market.”
- Private exclusives: For sale by brokerage
When homeowners make the decision to sell their home, they may find a considerable amount of repairs and home improvement that need to be done to their home. They may also want to do some home staging. And since this all takes time, the homeowner may choose to make the home available as a “Private Exclusive” of the brokerage that their listing agent is affiliated with. In addition, the homeowner has the choice as to whether or not they want their brokerage to cooperate with other brokerages and allow for showing appointments.
- Coming soon: For sale by brokerage
The properties begin as a Compass Private Exclusive and then move to Compass Coming Soon before going onto the MLS. Compass Coming Soon essentially extends the marketing runway of the Private Exclusive for sellers without accumulating days on market and without showing any price drops.
Notably, portal giant Zillow recently announced it is banning listings that are marketed this way, potentially limiting their exposure in the long run.
Like other agents, Libby Tritschler, with William Raveis in Southport, Connecticut, has particular views of the off-market market, but also mirrors some of Minken’s thoughts.
“Some of the best real estate opportunities never hit the MLS,” she says. “Off-market properties, also known as ‘pocket listings’ or ‘exclusive listings,’ can offer unique opportunities for both buyers and sellers, and it all starts with relationships. A well-connected REALTOR® often has access to a network of homeowners considering a sale but who aren’t ready to list publicly.
“These properties can come through word-of-mouth, private networks or even past clients who are quietly exploring their options. Door-knocking, targeted outreach and neighborhood farming are some of the ways I uncover off-market possibilities. For sellers, this offers them more privacy and control. But in a market where there is no inventory and so many buyers, will the seller be leaving money on the table by not putting it on the open market? Or will the buyer be willing to offer a ‘make me move price’ to ensure it never hits the market? Working with a season agent is key when finding and navigating these properties.
“For buyers, buying an off-market listing means less competition. The first step is working with an agent who often knows about properties before they’re even discussed publicly. It’s important for buyers to realize that off-market deals can move quickly, so having financing lined up and terms in place can help secure the property before anyone else even knows it’s available. Approaching an off-market deal requires discretion, strong negotiation skills and trust. That’s why working with a seasoned agent, who knows how to navigate these quiet transactions, is key. Off-market doesn’t mean unavailable, it means exclusive.”
As soon as I clicked on this article an ad for Zillow popped up! Lol. This caption from the article sums it up for me; “Terms like “private listing” or “pocket listing” also might be used interchangeably, but have very different definitions. Beyond that, different agents have different takes and different understandings of how they perceive off-market homes. There is no pure right or wrong.”
I mostly appreciate my competitors at Compass Realty’s path for a property before listing it in the MLS and having it syndicated everywhere before it is ready to make it’s one chance to make a first impression. Compass “Coming Soon” essentially extends the marketing runway for sellers without accumulating days on market and without showing any price drops. Makes total sense! Screw Zillow.