A growing number of homes are being sold through private, off-market channels, a practice once reserved for celebrities and the ultra-wealthy. This trend is sparking a fierce debate across the real estate industry, pitting major players like Zillow against brokerage firms over market transparency, fairness, and who ultimately benefits from these so-called “whisper listings.”
While sellers seek privacy and control, critics argue these secret sales create an uneven playing field for buyers and can cost sellers thousands of dollars. The conflict has escalated from industry debate to a high-stakes legal battle, questioning the very structure of how homes are bought and sold in America.
Key Takeaways
- Off-market, or "whisper," listings are homes sold privately without being advertised on public platforms like the Multiple Listing Service (MLS).
- A major lawsuit between Zillow and brokerage Compass highlights the industry-wide conflict over the practice.
- In the Greater Boston area, homes sold off-market reportedly sell for 3.8% less on average, a potential loss of over $26,000 for the seller.
- Proponents argue private listings offer sellers flexibility and a way to test the market, while opponents claim they limit competition and raise equity concerns.
A Divided Market
The core of the issue revolves around access to housing inventory. Traditionally, when a home is for sale, it is entered into the local Multiple Listing Service (MLS). This data is then shared widely with real estate websites, agents, and the public, creating an open marketplace where any interested buyer can compete.
Off-market listings bypass this system entirely. A seller and their agent might only share the property's availability within their own brokerage or through a private network. For some sellers, this method offers significant advantages. Holly Mitton, a homeowner in Danvers, Massachusetts, chose this route to coordinate selling her home with buying a new one.
"It takes the pressure off selling the house, and you’re not tied to having to officially drop the price if it’s on for two weeks and you don’t get any offers," Mitton explained. Her primary concern was avoiding a situation where her home sold too quickly, leaving her with nowhere to go.
This desire for logistical control, rather than celebrity-style secrecy, is driving more everyday homeowners to consider private sales. They want to avoid the stigma of a property sitting on the market for too long, which can invite lowball offers.
The Financial and Ethical Debate
While sellers gain privacy, they may be losing money. Zillow, a vocal opponent of the practice, has presented data showing that off-market sales in the Greater Boston area fetch 3.8% less than their publicly listed counterparts. This translates to an average loss of approximately $26,477 per seller.
A Costly Secret
According to Zillow, the 3.8% price reduction for off-market sales in Boston is one of the highest in the nation, trailing only cities like San Diego and Los Angeles. The platform argues that limited exposure eliminates the bidding wars that drive up prices.
"You’re essentially leaving, on average, 3.8 percent of that sale price and just walking away from it when you sell off-market,” said Matt Kreamer, a spokesperson for Zillow. The company contends that this system creates a market based on connections rather than financial capability.
Beyond the financial impact on individual sellers, broader concerns about fairness have emerged. Critics worry that these exclusive networks could lead to a form of "digital redlining." Research from Chicago, where private listing data is tracked, showed that homes in majority-white neighborhoods were more than twice as likely to be sold privately compared to those in diverse neighborhoods. This raises questions about equitable access to housing for all potential buyers.
A Strategic Advantage for Buyers and Brokers?
Brokerages that champion private listings, like Compass with its "Private Exclusives" program, push back against the idea that they are hiding inventory. They frame the practice as a strategic "soft launch"—a way to gauge interest and pricing before a full public debut on the MLS.
Eric Johnson, a senior vice president at Compass, argues that this method can lead to better outcomes. He described it as building leverage before a property hits the open market. He pointed to a waterfront home in Quincy at 700 Sea St. that was first marketed privately. This initial phase allowed the agent to gather feedback and ultimately sell the home for $1.63 million, which was above the seller's target price.
For buyers, finding an off-market property can be a significant win, especially in a competitive market. A client of Johnson's, exhausted from losing multiple bidding wars, was able to secure a private listing in the Stoughton area. This allowed them to purchase the home with inspection and mortgage contingencies—luxuries often waived in the heat of a public bidding war.
"It can be better for a buyer seeing those private listings, because there aren’t as many other buyers looking," acknowledged Kristen Keegan, the 2026 President of the Massachusetts Association of Realtors. "So, it can give the buyers more leverage and negotiation room."
The Pre-Market Strategy in Action
Proponents argue that the goal isn't to keep a home secret forever. Data from Compass shows that 94 percent of its private listings eventually go on to be listed on the MLS. The private phase is positioned as a preparatory step, not the final destination.
Another example is a property on Strathmore Road in Brighton. The seller used the private listing period to reject initial low offers and refine their strategy. When the home was finally launched on the MLS, it sold for $4.6 million, approximately $400,000 over the seller's original target.
"The MLS launch was the execution phase, not the discovery phase," Johnson noted. He compares the strategy to luxury retail, suggesting that high-value items don't need mass-market platforms to be sold effectively.
The Future of Home Sales
The clash over off-market listings is more than just a corporate dispute; it's a fundamental question about the future of the real estate market. On one side, platforms like Zillow advocate for an open, democratized system where all buyers have equal access to information and inventory.
The Legal Battleground
The conflict came to a head in mid-2025 when Compass filed an antitrust lawsuit against Zillow. The suit was a response to Zillow's policy that effectively bans agents from its platform if they withhold listings from the MLS. Zillow maintains its policy is designed to ensure a fair and transparent market for all participants.
On the other side, brokerages and some agents argue for the right to offer clients a tailored, strategic approach that prioritizes privacy and control. They believe the seller should have the choice to use a more discreet "on-ramp" to the market.
For sellers like Holly Mitton, the trade-off is clear. While she acknowledged potentially leaving money on the table, the certainty and reduced stress of a private sale aligned perfectly with her needs. "If this aligns with the house we want to buy right now, to me it’s worth it," she said. "I definitely would do it again."
As this debate continues in boardrooms and courtrooms, buyers and sellers are left to navigate a complex market where who you know can be just as important as what you can afford.
