Withheld Listings Aren't Helping the Housing Shortage. They're Adding to It.
If sellers won't list on the MLS until they've found their next home, there won't be any homes for them, or anyone else, to find.
That's the simple truth behind a trend we're seeing more of: homes kept off the open market as "private," "office exclusive," "pocket" or "delayed marketing" listings. We see it in our own office: listings get circulated internally, by email, instead of going to every buyer. They're often pitched as a smart move in a tight market. We think they make the tight market tighter.
If no one ever lists their house, there won't be any houses to find.
1. Hidden homes shrink inventory everyone is searching
Buyers in Rochester and across southeast Minnesota already have few homes to choose from. Every home that's for sale but hidden from the public is one less home buyers can find. And when sellers who also need to buy wait to see what turns up privately, they keep their own home off the market too. Each household waits, and the shortage everyone worries about gets worse.
2. Less competition can mean less money for the seller
The more buyers who see your home, the more likely you get competing offers. Zillow studied 2023 and 2024 sales and found that homes sold off the MLS typically sold for 1.5% less, about $4,975, than comparable MLS-listed homes. Lower-priced homes saw bigger gaps (Zillow Research). That estimate is based on Zillow's own price model, so it isn't the last word. Still, the logic is simple. Fewer buyers usually means less competition.
3. Not every buyer gets the same chance
When a home is shown only to one brokerage's clients or to a small, well-connected circle, other buyers never get a shot at it. That includes first-time buyers, people moving here for work at Mayo Clinic and families without an agent "in the loop." Fair housing is built on equal access. Even NAR's own policy announcement describes equal access to listing information as supporting fair housing.
4. Market data gets less accurate
Home values are set by comparable sales. When sales happen quietly, the public picture of prices and inventory gets blurrier. Sellers pricing homes, buyers making offers and appraisers checking values all depend on that data. And even when a private sale is added to the MLS after closing, a lower price from a sale with less competition (see point 2) becomes a comparable that can pull down the value of similar homes nearby.
5. Who benefits most?
When a home is marketed only inside one brokerage, the odds go up that the same firm represents both the seller and the buyer and collects both sides of the commission. That isn't against the rules, and some sellers have real reasons for privacy. But it's worth asking whose interests the strategy serves first. Too often, it's pitched as a way to win the listing: "Don't worry, this way we can find you a home without risking selling yours too quickly." There are better ways to protect yourself that don't cost you, the seller, money.
What the rules say now
Under NAR's Clear Cooperation Policy, a listing must go into the MLS within one business day of being publicly marketed. In March 2025, NAR added "delayed marketing exempt listings," which let a seller hold off on internet display for a period each MLS sets. Sellers who choose delayed marketing or an office exclusive must sign a disclosure acknowledging they're giving up the benefits of immediate public marketing (NAR: Multiple Listing Options for Sellers).
A better way: list it, on your terms
Many sellers hold back because they're afraid of selling before they've found their next home. There's a better answer than hiding the listing. List your home on the MLS so every buyer can see it, and set terms that protect you:
- An extended closing date, so you have time to find and buy your next home before you have to move.
- A sale contingent on you finding your next home, meaning you go under contract on your next place before your sale moves forward.
Buyers know these terms up front, and your home still gets full exposure and real competition. Your home also adds to the inventory, so the next family has something to find, and so do you.
Some sellers also choose a short "coming soon" period or a delayed-marketing period while the home is in the MLS. Those can work in some cases, but we start with full exposure and the right terms.
Questions to ask before you agree to keep your home off the market
- Who will actually see my home, and how many buyers is that?
- Will the same brokerage likely represent the buyer? How does that change the commission and who's looking out for me?
- What disclosure am I signing, and what benefits am I giving up?
- How will I know I got the best price if only a few buyers had a chance to bid?
If you have a real privacy or safety need, there are proper ways to handle it. For most sellers, full exposure is the better choice.
How we market our listings
Our team puts every listing in front of every buyer: on the MLS, on the major home search sites, here on Med City Home Finder, and with every agent in the area. We believe that's how you get the best price, and it's how Rochester gets more homes to choose from. If you're thinking about selling and want your home seen by everyone, call or text the Reinalda Lancaster Real Estate Group at 507-951-7316.