Navigating the New Wave: Home Sellers Embrace Private Listing Networks!

A recent survey conducted by Zillow and The Harris Poll sheds light on the growing reliance on private listing networks among home sellers and real estate brokerages. The findings highlight shifting consumer preferences in the housing market, indicating how real estate agents guide sellers toward these exclusive platforms instead of listing on the Multiple Listing Service (MLS).

The study revealed that while older Americans (ages 55+) are more likely to be familiar with the MLS, awareness of private listing networks remains lower across all age groups. Notably, only 14% of individuals aged 65+ could accurately define a private listing network, compared to 22% of those aged 18-34.

The research found that 63% of recent home sellers (those who sold within the past five years) reported their real estate agent had recommended listing on a private network instead of the MLS. Yet, despite this trend, 68% of sellers indicated that their agent did not explain the differences between listing on a private network and the MLS.

A significant racial discrepancy was also observed. Hispanic (74%) and Black (73%) home sellers were substantially more likely than white sellers (24%) to receive agent recommendations to list on private networks. This correlates with a more recent selling history among Hispanic and Black homeowners compared to white homeowners.

The study emphasizes that most home sellers (81%) value making their home listings publicly available on consumer real estate websites like Zillow and Redfin, where potential buyers can view listings for free. Additionally, 86% of respondents agreed that for-sale listings should be accessible to all buyers at no cost.

Access to a wider pool of buyers also impacts competition. 81% of survey participants believe that a bidding war is more likely when more buyers can see a listing. Furthermore, 73% of respondents expressed concerns that restricting for-sale listings to a select group of buyers could result in discriminatory practices within the housing market.

One of the most striking insights from the survey was how financial incentives influence listing preferences. When respondents were shown research from Bright MLS indicating that homes listed on the MLS sell for 17.5% more than those on private networks, 44% of homeowners who initially preferred private listings reconsidered their stance. Younger sellers (ages 18-34) were more likely to change their preference in response to this data than older sellers.

When selecting a real estate agent, t-he highest priority for home sellers was the agent’s ability to reach the largest pool of buyers (52%). Other critical factors included promising the highest sale price (45%), agent qualities such as accurate pricing recommendations (49%), and ensuring a quick sale closure (37%). Meanwhile, only 21% considered access to an exclusive buyer network a key factor in their decision.

The survey’s findings underscore a broader shift in housing market trends, with real estate brokerages increasingly promoting private listing networks. However, public listings on the MLS remain crucial for maximizing exposure and sale prices. As consumer real estate websites continue to drive transparency, home sellers must weigh the trade-offs between visibility and exclusivity when deciding how to list their property.