Private listings are polarizing real estate, here is a path forward

"When a listing brokerage keeps a home off the MLS and sells it in-house, meaning one of their own agents represents the buyer, that brokerage earns both sides of the commission from a single transaction. In a traditional cooperative sale, that commission is split between two brokerages. In a private, in-house sale, it all stays in one place. That is a significant financial advantage for the brokerage."

"A brokerage that successfully matches its own listing with its own buyer has delivered real value and earned that outcome. Maximizing revenue per transaction is a legitimate business goal. What is not acceptable is when that financial motivation goes undisclosed to the seller."

Private listings have become a contentious issue in real estate, with advocates highlighting benefits while critics raise concerns, yet both sides fail to acknowledge legitimate counterarguments. The core issue involves brokerages keeping homes off the MLS and selling them in-house, allowing them to earn both sides of the commission rather than splitting it with another brokerage. This represents a significant financial advantage for brokerages. While earning higher revenue from successfully matching internal listings with internal buyers is a legitimate business goal, the critical requirement is full transparency with sellers about this financial motivation. The debate remains unresolved because most participants cannot simultaneously acknowledge both the validity of private listings and the risks they pose to industry infrastructure.

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