Why Brokers Are Turning To Private Real Estate Listings In Today’s Challenging Market
Recently, private real estate listings have gone from a niche option to a strategic tool for many brokerages.
Private listings used to only make up 2% to 4% of all listings. However, in 2025, that number has nearly doubled in some markets, reaching close to 8% of new listings.
This increase shows a shifting real estate market, as brokers are increasingly relying on private deals to navigate the challenges of the current competitive market.
Understanding why private listings are gaining traction and how you can secure these exclusive opportunities is essential for staying ahead.
In this guide, we’ll explain the current challenges in the U.S. real estate market, why brokers are turning to private real estate as a solution, and how you can secure these deals yourself.
Market Challenges Driving Brokers to Private Listings
Brokers are currently facing significant challenges that are reshaping how they find and secure properties. Understanding these helps explain why private real estate listings have become an increasingly attractive option.
Inventory shortages and high demand
Brokers are facing a persistent shortage of available real estate properties. Supply is around 20% to 30% below previous low points, meaning inventory is tight.
Whether it’s residential, commercial real estate, or income-producing real estate, the limited supply has made it increasingly difficult for agents to find suitable options for their clients.
This scarcity has driven competition, resulting in bidding wars that often push prices beyond what buyers initially anticipate.
Increased competition among brokerages
The competition isn’t just between buyers. It’s also fierce among brokers themselves.
With fewer public listings available and falling property prices, real estate professionals are constantly looking for new ways to differentiate their offerings. In fact, price cuts on public listings are at around 19%.
Brokerages that rely solely on public listings risk losing clients to competitors who have access to exclusive or private deals.
This increased competition can strain relationships with clients, as brokers may struggle to deliver on expectations when the market is flooded with buyers who don’t have high-quality properties.
It also drives brokers to explore less conventional avenues, such as private real estate listings, to secure unique opportunities for their clients.
Limitations of public multiple listing service (MLS) listings
While the MLS remains an important tool for many brokers, it comes with limitations. Publicly listed properties often face overexposure, attracting multiple offers in a short time frame.
This reduces negotiation leverage for buyers and can lead to rushed decisions without thorough diligence.
Additionally, sellers of commercial or income-producing real estate sometimes prefer to avoid the MLS to maintain discretion or minimize disruptions.
For brokers, relying only on public listings can mean missing out on these off-market properties that could offer better terms and less competition.
Impact on brokers’ ability to close deals
The combination of limited inventory, intense competition, and MLS restrictions impacts brokers’ ability to close deals effectively.
For those working in commercial real estate or managing real estate investments, the pressure to find exclusive properties that aren’t widely available is bigger than ever.
This is driving many brokers to look out for private real estate deals to gain an edge in a challenging market.
What Are Private Real Estate Listings?
Private real estate listings, sometimes called off-market or pocket listings, are properties that are not publicly advertised through traditional channels like an MLS.
Instead, these listings are shared discretely within a select network of brokers, individual investors, or industry insiders. This approach allows sellers to maintain more control over who sees their property and how the sale takes place.
In the property sector, private listings have become a popular alternative investment strategy for those looking to diversify beyond the typical public market offerings. For brokerages, private listings can open doors to exclusive opportunities that are often overlooked in the broader market.
One of the key reasons private listings are so attractive is their potential to increase cash flows. As these properties are marketed discretely, there’s typically less competition, allowing buyers to negotiate better terms and potentially secure higher returns.
This can be valuable for investors focused on core strategies like acquiring income-producing real estate or properties that enhance long-term cash flow.
Additionally, private listings can include various property types, including residential, commercial, and mixed-use real estate.
By tapping into private real estate listings, brokers can access unique deals that support their objectives while avoiding some of the pitfalls in a crowded public marketplace.
Why Private Listings Are Becoming a Key Strategy for Brokerages
As you now know, private real estate listings are becoming a big part of how brokerages are competing and growing. Below are some reasons why brokers are making private deals a central part of their strategy:
Gaining a competitive advantage
Private listings offer brokers a valuable competitive edge. By securing exclusive access to off-market properties, brokers can present clients with unique opportunities unavailable to others relying only on public listings.
This exclusivity not only helps brokers win deals but also strengthens their reputation as trusted advisors who go beyond the ordinary to deliver results.
Building client loyalty and trust
Private listings foster deeper relationships between brokers and their clients. Sellers appreciate the discretion and control that come with off-market deals, while buyers benefit from less competition and greater negotiating power.
These advantages foster loyalty, encouraging repeat business and referrals, which are crucial factors in growing your brokerage and achieving long-term success.
Supporting growth and diversification
Brokerages that incorporate private real estate listings into their strategy can diversify their revenue streams.
Access to a variety of property types allows brokers to meet different client needs and capitalize on emerging trends. This flexibility supports sustained growth and resilience in challenging market conditions.
Enhancing value-added opportunities
Private listings often include properties with untapped potential for value-added improvements. If you’re skilled at identifying opportunities, you can help investors maximize returns by targeting properties that are perfect for renovation, repositioning, or development.
| Looking Ahead: The Future of Private Real Estate Deals As market challenges persist, brokerages are likely to continue relying on private real estate. Brokerages that invest in relationships, technology, and specialized knowledge will be in the best position to capitalize on these opportunities. By making private listings a core part of your business strategy, you can navigate the uncertainties and continue delivering strong outcomes for your clients. |
How Real Estate Brokers Secure Private Deals
Securing private real estate deals is about more than just access. It means fostering relationships, building a strategy, and using the right tools. Here’s how brokers find and close these exclusive opportunities:
Building strong relationships and trust
One way brokers gain access to private real estate listings is through building strong, long-term relationships with property owners, investors, and developers.
Trust plays an important role, especially when dealing with properties in prime locations that owners prefer to keep off the public markets.
Brokers who can be professional, discreet, and have a deep understanding of the market’s nuances are often invited to participate in these exclusive deals.
Maintaining a track record of past performance also helps brokers prove their credibility. Sellers and investors want to work with professionals who can deliver results, especially when the stakes are high and the listings aren’t publicly advertised.
Leveraging networks and referrals
Brokerages often need to tap into extensive networks of contacts to find private listings. This includes connections with investors, estate fund managers, attorneys, and financial advisors who may know of upcoming opportunities before they hit the market.
Referrals within these networks provide brokers with a valuable pipeline of potential deals that aren’t accessible to the general public.
Using technology and market data
Technology and data tools are important when it comes to identifying and securing private real estate deals. Brokers use market analytics to identify properties with strong growth potential or those that could benefit from added improvements.
These insights help them approach property owners with tailored proposals that highlight the potential benefits of a discreet sale or partnership.
By analyzing trends beyond public markets, brokers can spot hidden opportunities that others may overlook, giving their clients an edge in competitive environments.
Personalized marketing and exclusive agreements
Brokers also use personalized marketing strategies to build relationships and trust with potential sellers and investors. This might include targeted outreach, confidential presentations, or exclusive agreements that ensure discretion throughout the sale process.
Non-disclosure agreements and exclusive listing contracts are common tools used to protect sensitive information while providing brokers with confidence to invest time and resources into closing a deal.
The Challenges and Risks of Private Listings
Now that you know why private real estate has become such a popular strategy for brokers, let’s look at how this particular type of deal could be challenging:
Legal and ethical considerations
While private real estate listings offer many advantages, they also come with legal and ethical challenges that brokers need to navigate carefully.
Transparency is key, especially when it comes to disclosure requirements. Brokers need to ensure that all parties are fully informed about the terms of the deal to avoid potential conflicts or unfair practices.
As private listings limit exposure and could potentially disadvantage other buyers, brokers need to balance discretion with acting in the best interests of their clients and the broader market.
Limited market exposure
Another risk of private listings is the limited exposure a property receives. Unlike public listings that attract multiple buyers, off-market deals may reach fewer potential purchasers.
While this can reduce competition and increase negotiation power, it also risks lowering the final sale price if the pool of interested buyers is too small.
For sellers, especially those looking for maximum returns, this trade-off can be a big consideration. Brokers need to evaluate whether private marketing aligns with the seller’s goals and the property’s value.
Managing client expectations
As private listings are less visible and often more complex, managing client expectations becomes even more important.
Buyers need to understand that while private deals can offer unique opportunities, they may also involve longer timelines or more uncertainty.
On the other hand, sellers should be aware of the potential disadvantages, such as a narrower buyer base and possible challenges in establishing market value.
Clear communication helps prevent misunderstandings and fosters trust throughout the transaction.
Potential market perception issues
Lastly, using private listings frequently can sometimes lead to market perception challenges. Overly relying on off-market deals might create an impression of exclusivity that alienates some clients or investors who prefer transparency and open communication.
Brokers need to balance private listings with public market opportunities to maintain credibility and ensure they have a reputation for fairness and professionalism.
Use the Best Transaction Management Tool to Secure Private Deals
Navigating private real estate listings means you need careful coordination, clear communication, and organization.
Managing exclusive deals often involves multiple parties, sensitive documents, and tight timelines, all of which need a reliable system to keep everything on track.
Paperless Pipeline streamlines every step of the real estate transaction process, giving brokers the tools to handle private deals with confidence and professionalism efficiently.
From document management to task tracking and client communication, our platform simplifies everything so you can focus on building relationships and closing more deals.
Having powerful transaction management tools supports smoother workflows and better collaboration, helping you maintain the discretion and precision you need to secure and close private listings.
Explore how we can transform your brokerage’s approach to private real estate deals by starting a free 14-day Paperless Pipeline trial today.