As the real estate market tips slowly toward a buyer’s market, it’s time for a serious gut-check on the rise of private or “exclusive” listings. Damian Eales, CEO of Realtor.com, hit this issue head-on in an Op-Ed yesterday, calling out what he sees as a growing and dangerous trend: the quiet erosion of transparency and competition in the U.S. housing market.
According to Eales, “Selling a secret is no way to start a bidding war and will surely result in shortchanged sellers.” I have to agree. The data doesn’t lie—more eyeballs mean more competition, and more competition typically means better offers.
The U.S. real estate system is built on something many other countries can’t offer: a mostly open, accessible marketplace where buyers and sellers interact with fair access and clear representation. This openness wasn’t an accident—it was shaped by MLS cooperation, uniform data standards, and policies like Clear Cooperation that ensure listings are visible to everyone, not just a select few.
So what’s the issue? Eales suggests that “seller choice”—the idea that sellers benefit from controlling access to their listing—is often misrepresented. While there may be rare exceptions, more often, sellers are being convinced by their agents to keep listings off-market in ways that directly reduce buyer exposure, reduce competition, and lower sale prices. As Eales puts it, “It is utter nonsense, and never-more-so in an emerging buyers’ market.”
There’s also a legal and ethical layer to this. Steering, discrimination, and litigation risks all become more likely in a secretive sales process. The Newsday investigation into fair housing violations back in 2019 made that crystal clear. And if we’ve learned anything, it’s that appearances matter—agents and brokers need to not only act ethically, but also be seen doing so.
From a seller’s perspective, the choice seems obvious. If I’m paying a full commission to a listing agent, I expect maximum exposure for my home—not a whisper campaign limited to their private network. You wouldn’t throw a party and then lock the doors.
The bottom line? Sellers should ask their agents one critical question: “Who won’t see my listing, and why?” If the answer isn’t convincing, it might be time to reconsider who’s really being served.