Off-market home sales, also known as pocket listings, are real estate transactions that occur without being listed on the Multiple Listing Service (MLS). These types of sales are becoming increasingly common in the real estate industry, as sellers and buyers look for more privacy, exclusivity, and convenience.
The exact number of off-market home sales in the United States every year is difficult to determine since these transactions are not publicly reported. However, industry estimates suggest that off-market home sales account for a significant portion of the real estate market. According to a study by Redfin, a national real estate brokerage, off-market sales accounted for approximately 1 in 8 home sales in 2019.
Another report by the National Association of Realtors (NAR) found that 15% of real estate agents surveyed said they had completed an off-market sale in the past year. The report also found that off-market sales are more common in high-end markets where properties are priced at $750,000 or higher.
One reason why off-market sales are becoming more popular is that they can offer certain advantages for both buyers and sellers. For sellers, an off-market sale can provide more privacy, fewer disruptions, and potentially a higher sale price since the property is not exposed to the open market. For buyers, an off-market sale can offer a more exclusive opportunity to purchase a unique property or avoid competition from other buyers.
However, off-market sales also have some potential drawbacks. For sellers, an off-market sale can limit the exposure of the property to potential buyers, potentially resulting in a longer sales cycle or lower sale price. For buyers, an off-market sale can limit the number of available properties to consider, potentially resulting in a missed opportunity or overpaying for a property.
In summary, off-market home sales are becoming more prevalent in the United States real estate market, accounting for approximately 1 in 8 home sales according to industry estimates. While off-market sales can offer certain advantages for both buyers and sellers, they also have some potential drawbacks, and it’s important to weigh the pros and cons before deciding to pursue an off-market sale.