Why Selling Your Home Privately Might Be a Big Mistake (And What Real Estate Companies Aren’t Telling You)
Real Estate
Real Estate
In today’s competitive real estate market, how you list your home can directly impact how much you walk away with. At San Diego Castles Realty, we believe in full transparency and giving our clients every advantage possible, starting with how their home is marketed.
Lately, there's been a lot of buzz about private listings, especially after a real estate giant doubled down on its “Private Exclusive” strategy. Let’s break down what that means, what’s at stake, and why going public almost always delivers better results for sellers.
Why This Is Making Headlines Now
A major real estate company has recently launched a three-phase listing strategy that intentionally delays exposure to the full market. Sellers are encouraged to first list privately within their network, excluding the MLS and even outside agents.
Proponents argue that this gives sellers more control over pricing and allows for a "quiet test" of the market. But critics, including some of the biggest names in real estate, say it reduces visibility, limits competition, and may not always be in the seller’s best interest.
In fact, another real estate company has now responded by implementing a policy that bans listings from appearing on their platform if they’ve been marketed off-MLS for more than 24 hours. This resulted in an antitrust lawsuit, claiming the rule is monopolistic. The ripple effects of this legal battle could reshape how homes are listed, and how many buyers ever get to see them.
What Is a Private Listing, Anyway?
A private or “off-market” listing is a property that isn’t posted on the MLS. Instead, it's shared discreetly, often only among agents within the same brokerage.
Sounds exclusive? Maybe. But for most sellers, it means fewer eyes, fewer showings, and fewer offers.
The Hidden Downsides of Private Listings
Limited Exposure = Fewer Offers
Private listings don’t appear on the MLS, nor are they shown on third-party sites. That drastically reduces the buyer pool, and with it, your negotiating power.
Lower Sale Prices
Homes marketed to the full public benefit from competitive pressure. When more buyers see your home, they act faster and often offer more. This is especially true in sought-after neighborhoods like Scripps Ranch, where San Diego Castles leads the market.
Dual Agency & Conflicts of Interest
Private listings frequently result in in-house deals, where one agent represents both buyer and seller. While legal in California, dual agency can raise serious concerns about who’s really being represented. In some cases, commission, not your best outcome, becomes the driving force.
Skewed Market Data
When homes sell off-market, those sales may not show up in public comps. That can distort pricing trends and hurt future home valuations across the neighborhood, including yours.
While we don’t recommend it for most sellers, there are a few cases where an off-market approach might be appropriate:
● Privacy concerns (celebrities, public figures, etc….but really, how often is that?)
● Testing a price before a full launch (note: we can still do this in our MLS when we list the home as a “coming soon”)
● Prepping a home for the market while beginning quiet outreach
These situations are rare, and even then, we advise proceeding with caution.
At San Diego Castles Realty, we believe your home deserves full exposure, and you deserve the highest possible return. That’s why we craft thoughtful, powerful listing strategies that maximize interest, offers, and final sale price.
We don’t believe in cutting corners or hiding your home behind closed doors.
We believe in smart pricing, beautiful presentation, and open-market visibility.
And with SDCR currently holding the #1 spot in individual sales volume in the 92131 zip code, we know how to deliver results. Our listings receive high-impact exposure, professional staging, and smart pricing strategies designed to maximize value.
Before you commit to a private listing, get a second opinion. We’ll walk you through all your options, with no pressure, no hype, and no obligation.
👉 Contact San Diego Castles Realty
Let’s get your home the attention—and the results—it deserves.
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