Losing out on homes: Why Manhattan buyers may be missing properties kept off public listings |
Manhattan homebuyers may be missing out on a significant share of properties for sale as brokerages increasingly market homes privately before listing them on public real estate platforms, raising concerns about transparency, competition and whether sellers are getting the highest possible price.Compass, the largest residential brokerage in the US by sales volume, has expanded the use of its “Private Exclusive” and “Coming Soon” listings, allowing sellers to test demand within its agent network before making a property publicly available, reported NY Post.The practice has particular significance in Manhattan, where Compass has an estimated 80 per cent share of the residential brokerage market, according to data cited by the New York Post. Critics say such concentration can leave buyers who are not connected to the brokerage’s agents with a narrower view of available inventory.Under the marketing model, a property can initially be offered as a “Private Exclusive” to its agents and their clients. It can then move to a “Coming Soon” stage before being listed publicly.Compass says the approach gives sellers more control over the marketing process and can help properties sell faster and at higher prices. The company says homes that skip an immediate public launch can sell 34 per cent faster and for 4.6% more, according to the report.But critics argue that keeping homes away from the broader market can reduce competition among buyers and make it harder to establish the true market value of a property.“You cannot determine what a home is worth unless you expose it to the broader market,” James Dwiggins, CEO of rival brokerage NextHome, told the New York Post.Housing analyst Jonathan Miller similarly warned that buyers using public platforms may not realise they are seeing only part of the available inventory.
What it means for sellers
The debate is not only about buyers. A private listing can produce a quick sale, but sellers may potentially miss competing offers if a property is not exposed to the full market.That was the experience of San Francisco homeowner Caitlin Bigelow, who initially sold her condominium through a Compass Private Exclusive after receiving an offer at the price she had hoped for. When the buyer later backed out, she listed the property publicly.Six days later, the couple received an offer $100,000 above their original target, ultimately selling the home for $2.15 million.The experience led Bigelow to argue that wider market exposure had helped her achieve a better price.The issue becomes particularly significant in Manhattan because of Compass’ market concentration. If a brokerage controls a large share of listings and those properties are initially circulated within its own network, buyers outside that network may have difficulty accessing the full pool of homes.The concern has already attracted regulatory attention. New York Attorney General Letitia James’ antitrust division is investigating Compass’ market footprint, while several states are considering restrictions on private or off-market listings.The debate ultimately comes down to a question of how much of Manhattan’s housing market should be visible to everyone; whether sellers should have the freedom to privately market their homes, or whether concentrated private listings risk creating a less transparent market for buyers and potentially limiting competition for sellers.
