Private real estate listings may seem exclusive, but they often hide a troubling truth — they limit competition, reduce sale prices, and quietly benefit agents at the seller’s expense. Learn how these off-market deals could be costing home sellers thousands and what you can do to protect your property’s true value.
Let me tell you a story about Caitlin Bigelow, a San Francisco homeowner who nearly got played by the slick machinery of modern real estate. Last month, she dodged a bullet not out of cunning, but by sheer luck. When a deal to sell her condo fell apart, she didn’t cry into her coffee. No, she felt relief. That’s right: relief. Why? Because the system she trusted a system we’re all told to trust was quietly working against her. And it’s working against you, too.
Bigelow’s saga shines a light on a dirty little secret in the housing market: private listings. These are homes that don’t show up on Zillow or Redfin, homes that are dangled before a select few buyers like VIP passes to an exclusive club. It’s a practice that’s been around for years, but it’s now at the heart of a firestorm shaking up the real estate industry. And if you’re a homeowner or dreaming of becoming one you need to know what’s at stake. Because this isn’t just about Bigelow. It’s about fairness, truth, and whether the American dream of homeownership is being gamed by those who profit most from it.
A Deal Too Good to Be True
Bigelow was working with a Realtor from Compass, one of the heavyweights in American real estate. Her agent pitched a strategy called a “Compass Private Exclusive.” Sounds fancy, right? It’s not. It just means her condo wouldn’t be listed publicly on sites like Zillow or Redfin. Instead, it would be whispered about internally at Compass, shared only with buyers represented by Compass agents. Think of it as a secret handshake for the real estate elite.
The pitch worked. Bigelow got two offers, one for $2.1 million $95,000 over her asking price. “That’s the magic number,” she thought, and she signed on the dotted line. But then doubt crept in. “Only two people saw the home, and we hit the number already,” she told CNN. “What if 50 people saw it?” That nagging question is the crack in the facade of private listings a crack that exposes how sellers are being shortchanged.
The Industry’s Dirty Laundry
Bigelow’s unease isn’t just a personal quirk. It’s a symptom of a deeper rot in the housing market, one that’s been festering since the National Association of Realtors (NAR) settled a landmark lawsuit last year over how homes are bought and sold. The settlement was supposed to bring transparency, but instead, we’re seeing a new fight over private listings. And let me be clear: this isn’t about celebrities hiding their mansions from paparazzi. It’s about everyday people like Bigelow getting less than they deserve.
Private listings aren’t new, but they’ve become a signature move for Compass. About 35% of their listings are either “Private Exclusives” or “Coming Soon,” according to CEO Robert Reffkin’s own words on a recent earnings call. That’s a third of their inventory kept off the public market, away from the prying eyes of regular buyers. Compass claims it’s about giving sellers “choice.” But whose choice is it, really?
“If a portion of inventory is removed and only shown to a small group, that’s exclusionary behavior that’s going to hurt others,” says Leo Pareja, CEO of eXp Realty.
Pareja’s not wrong. When homes are hidden from the market, only a select few get a shot at them. That’s not just unfair—it’s a betrayal of the seller’s interests. If you’re selling your home, don’t you want every possible buyer to see it? Don’t you want the highest price? Of course you do. But private listings limit competition, and less competition means lower offers. It’s basic economics, folks.
The Compass Playbook
Compass has a three-step game plan for listings, and it’s as calculated as a chess match. Step one: list the home as a “Private Exclusive” to “test” the price. Step two: move to a “Coming Soon” phase, teasing the listing on Compass’ website to drum up hype. Step three: finally go public on the Multiple Listing Service (MLS), where all agents can see it. Sounds reasonable, right? Except it’s not.
Summer Goralik, a real estate compliance consultant, cuts through the spin. “If the plan to market off the MLS is driven by client need, that’s fine,” she told CNN. “But if it’s the agent pushing it before the seller even asks, that dirties the water.” And the water is plenty dirty. Critics argue that Compass’s strategy nudges sellers toward deals with Compass buyers, letting the brokerage pocket commissions from both sides. Double the profit, half the transparency.
Compass denies this, of course. “Home sellers deserve choice,” a spokesperson told CNN, as if anyone’s arguing against choice. The real question is whether sellers are being given informed choice or just fed a slick sales pitch. Bigelow didn’t feel pressured, but she still regrets her private listing. After her initial buyer fell through, she listed publicly and got $100,000 more than the private offer. That’s not pocket change that’s a life-changing sum.
The Industry Fights Back
The backlash against private listings is growing louder. Ryan Schneider, CEO of Anywhere Real Estate (think Coldwell Banker, Century 21), isn’t mincing words. “We’re advocating for transparency and broad distribution of nearly all listings,” he said on an earnings call. “It’s best for buyers to see all inventory, and it helps sellers get the highest price.” Sounds like common sense, but it’s a radical stance in an industry that thrives on opacity.
Ironically, Anywhere’s own subsidiary, Corcoran, just launched Corcoran Reserve, a private listing network for “discreet” sellers. Pot, meet kettle. Meanwhile, Douglas Elliman is jumping on the bandwagon with its own private network. It’s like watching a room full of foxes swear they’re guarding the henhouse.
Then there’s Zillow and Redfin, the people’s champions in this mess. Last month, Zillow announced a new rule: if a listing is marketed anywhere, it has to hit Zillow within 24 hours, or it’s banned. Redfin followed suit. It’s a direct shot at Compass’s “Coming Soon” nonsense. Reffkin fired back, whining that Zillow and Redfin show price cuts and days on market ষdata he claims hurts sellers. Cry me a river, Robert. That data is called transparency, and it’s what keeps the market honest.
The Bigger Picture
Let’s zoom out. The housing market is already a mess sky-high prices, low inventory, and buyers scraping by to afford a starter home. Private listings make it worse. They fragment the market, letting well-connected buyers (and their agents) snatch up homes before regular folks even know they’re for sale. It’s a rigged game, and the losers are the sellers who don’t get top dollar and the buyers who never get a chance.
“An increasingly fragmented market hurts both buyers and sellers,” Goralik says. “That’s not moving toward the future. That’s going backwards.”
She’s right. This isn’t progress it’s a throwback to the days when real estate was a closed club, where deals were made in backrooms and the little guy got screwed. The NAR tried to clean things up with a 2020 rule requiring listings to hit the MLS within a day of marketing. But in March, they backtracked, loosening the rules to allow more private listings. Why? Because the industry’s powerful players like Compass wanted it that way.
A Voice for the Voiceless
I’ve spent years calling out systems that prey on the vulnerable, and this is no different. Private listings aren’t just a business strategy they’re a power grab. They let big brokerages like Compass control the market, hoarding inventory and dictating terms. And who gets hurt? People like Bigelow, who almost left $100,000 on the table. People like you, who might never see your dream home because it’s locked away in a private database.
Here’s my take: the real estate industry needs a reckoning. Transparency isn’t a buzzword it’s a lifeline. Sellers deserve to know their options, not be spoon-fed strategies that benefit their agents. Buyers deserve a fair shot, not a system that rewards insiders. And if companies like Compass want to play gatekeeper, they should expect pushback not just from competitors, but from homeowners who’ve had enough.
Bigelow’s story has a happy ending, but not everyone’s will. She got lucky when her private deal fell through, giving her a second chance to list publicly. Most sellers won’t get that chance. They’ll take the first offer, not knowing it’s a fraction of what they could’ve earned. And that’s not just unfair it’s wrong.
The Fight for Truth
So where do we go from here? First, homeowners need to wise up. If your agent suggests a private listing, ask why. Demand numbers how many buyers will see it? How does it compare to public listings? Don’t let jargon or charm sway you. Second, support platforms like Zillow and Redfin, which are fighting for transparency. And third, call out the NAR and big brokerages for enabling this mess. They’re not your friends they’re businesses, and businesses prioritize profit over people.
As for Compass, they’re not the only ones playing this game, but they’re the loudest. Reffkin’s latest stunt inviting other agents to view private listings in a physical book at Compass offices is a laughable attempt to dodge scrutiny. A book? In 2025? Come on, man. This isn’t transparency it’s theater.
I’ll leave you with this: the housing market isn’t just about money. It’s about dreams, families, and the chance to build a life. When brokerages hide listings and limit competition, they’re not just stealing dollars—they’re stealing hope. And if we let them get away with it, we’re complicit. So let’s not. Let’s demand better. Because the truth, as always, is worth fighting for.
