If you’re looking to buy a house, private listings can make all the difference in finding your dream home. If you’re not looking at private listings, you’re missing inventory and you’re already late to the game.
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.
But you won’t find all the private listings on these popular sites.
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 not available to be viewed by 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’re 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. According to the New York Times, it’s estimated that as many as 20% of all listings are now available only to buyers through private listings. If you’re not looking at private listings, you’re 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’re 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. Many houses trade exclusively through the PLN and may never go out to the public market. If you’re a buyer you need to be plugged into PLN.
2. Exempt listings
Except 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 except 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’re looking to buy a home on The North Shore of Chicago, we’d love to work with you. We’re here to be your local on-the-ground experts, and we’ll help you navigate both public and private listings. Get in touch, and we’ll help you get connected to the private listing network!
