Buyer advocates warn pocket listings tilt the market toward brokerages

The National Association of Exclusive Buyer Agents is warning consumers that private real estate listing networks can limit competition, reduce transparency and steer deals toward brokers’ own interests. The group says the practice can hurt both buyers and sellers as pocket listings spread across U.S. markets.

Why it matters: - Exclusive Buyer Agents say hidden listings can reduce competition for sellers and cut off inventory for buyers. - The group argues the practice can also raise fair housing, fiduciary duty and transparency concerns. - Buyers may lose access to homes they never knew were available. - Sellers may accept less than they could have received in an open-market sale.

What happened: - The National Association of Exclusive Buyer Agents warned homebuyers about the growth of private listing networks, also known as pocket listings, office exclusives, first-look programs, coming-soon listings and whisper listings. - The group said traditional brokerages are encouraging sellers to keep homes off the open market. - NAEBA framed the practice as a nationwide trend that can favor brokerage profits over consumer interests. - The release included comments from brokers and buyer advocates in Salt Lake City, San Diego County, Sarasota, Seattle, Greater Washington, Orlando, Greater Boston and Worthington.

The details: - Private listing networks limit a property’s exposure to buyers outside a particular brokerage or network. - Supporters describe the programs as another marketing option for sellers. - Critics say the arrangements can let brokerages keep both sides of a transaction in-house. - Benjamin Clark, NAEBA president and principal broker at Homebuyer Representation, said private listing networks harm consumers by prioritizing brokerage profits over fiduciary duty. - Clark said sellers forfeit open-market competition needed to maximize price, while buyers face artificial scarcity and compromised or no representation. - William True, a broker at True Real Estate, said in-house marketing can keep both sides of the commission and reduce exposure that should come from immediate MLS posting. - Jeretta Mcrae-Bell, broker at First Exclusive, said pre-market listings can limit access, reduce transparency and steer buyers toward the listing agent. - Rich Rosa, co-founder and past NAEBA president, said buyers should not need to be connected to a particular brokerage or private network to know what homes are available. - Victoria Ray Henderson, broker at HomeBuyer Brokerage, said private listings only work as a seller choice if sellers understand what they are giving up. - Paula Howard, broker at Your Special Agent, said private pocket listings can restrict the buyer pool, potentially lower sale prices and weaken comparable-sales data because the transactions are not recorded in the MLS. - Nicholas Martin, broker and buyers advocate at Buyers Choice Realty, said office exclusives can generate little competition, delay sales and pressure sellers to accept weak offers. - Eve Alexander and Erika Phelan, both with Buyers Broker of Florida, said pocket listings mainly help the agent keep more commission. - Andrew Show, a past NAEBA president, said limited advertising can cost sellers money and steering buyers toward in-house listings can violate federal fair housing laws. - NAEBA said its member brokers exclusively represent homebuyers and work at brokerages that never represent home sellers, never accept listings and never advertise homes for sale. - The group said that structure is meant to remove conflicts of interest common in firms that represent both sides in the same transaction. - NAEBA said it was founded in 1995 by consumer advocates. - The group said it is committed to fair housing and eliminating discrimination and steering in the housing industry. - The release pointed readers to NAEBA's website for more information.

Between the lines: - The release is as much a consumer warning as it is an industry argument. - NAEBA is positioning exclusive buyer agents as the antidote to a market structure it says rewards closed-door dealmaking. - The core dispute is not whether private listings exist, but whether sellers and buyers fully understand the tradeoffs. - The group is also linking pocket listings to broader debates over fair housing and comparable-sales data.

What's next: - NAEBA is likely to keep pressing for open-market listing practices and buyer-only representation. - The debate over private listing networks will continue as brokerages test “coming soon” and in-house marketing models. - Consumers weighing off-market offers may face more pressure to decide between access and representation.

The bottom line: - NAEBA says homes sell best in the open market, where buyers can compete and sellers can see the full price the market will bear.