As the real estate industry continues to evolve, few topics have generated as much conversation, confusion, and debate as private listings and private listing networks (PLNs). While the two terms are often used interchangeably, they represent distinct strategies with different implications for sellers, buyers, and the agents advising them.

For today’s real estate professionals, understanding these differences and clearly explaining the trade-offs to clients is no longer optional. It is a core part of an agent’s fiduciary responsibility.

What Is a Private Listing?

Private listings, often referred to as pocket listings, have existed for decades. In this scenario, a seller intentionally chooses not to market their property publicly. Instead, the agent discreetly shares the opportunity with a small number of qualified buyers or trusted colleagues.

These listings are typically used in limited circumstances, such as when a seller prioritizes privacy, security, or discretion over broad market exposure. High-profile clients, unique properties, or sensitive personal situations are common drivers behind this approach.

A private listing is not inherently a marketing system. It is a seller-specific decision made for clearly defined reasons, often with full awareness that limiting exposure may impact demand, competition, and final sale price.

What Is a Private Listing Network (PLN)?

A private listing network is structurally different. PLNs are organized, brokerage-controlled databases where listings are shared internally or within invitation-only groups, sometimes before they are entered into the Multiple Listing Service (MLS), and sometimes instead of being entered at all.

These networks may include features such as:

• Restricted access limited to agents within a brokerage or affiliated network
• “Coming Soon” or pre-marketing phases are designed to test pricing or gauge interest
• Internal promotion without public syndication to consumer portals
• Concentration in luxury or high-end markets

Industry surveys suggest that roughly half of agents now work at brokerages that operate some form of private network, making PLNs an increasingly common part of the landscape.

How PLNs Interact With MLS Rules

The National Association of REALTORS®’s Clear Cooperation Policy requires listings to be submitted one business day after initiating any public marketing. Some PLNs operate entirely within internal channels to remain exempt from this requirement, avoiding public advertising while still promoting listings internally.

This distinction has fueled industry scrutiny, especially as private networks scale and become more sophisticated.

Why Sellers and Agents Consider Private Options

There are legitimate reasons sellers may explore private listings or PLNs, including:

• Privacy and discretion, especially for high-net-worth or public-facing individuals
• Market testing without accumulating days on market
• Reduced showings and tightened buyer qualification
• Controlled marketing and timing strategies

In some cases, these benefits align well with a seller’s goals. In others, they may introduce trade-offs that are not immediately obvious without clear agent guidance.

Industry Criticism and Consumer Concerns

Critics of private listing networks argue that broad adoption can create unintended consequences for both sellers and buyers.

Research cited by industry analysts, including studies referenced by Zillow, suggests that properties sold off the MLS may achieve lower sale prices due to reduced exposure. A 2025 report estimated that sellers using non-MLS strategies left more than $1 billion on the table over a two-year period.

Buyers may also be impacted. When homes are marketed selectively, consumers may never know certain properties were available, limiting choice and competition.

There are also fair housing considerations. Restricting access to listings, even unintentionally, can increase risk if certain groups are disproportionately excluded from private networks.

Finally, private environments can increase the risk of dual agency, which requires heightened disclosure and careful management to avoid conflicts of interest.

A Key Legal Development in 2026

On February 6, 2026, a federal court denied a preliminary injunction seeking to block Zillow’s Listing Access Standards. The ruling found insufficient evidence that the policy harmed competition or unlawfully excluded brokerages from the market.

Importantly, the court affirmed that sellers and brokerages remain free to use alternative marketing strategies, even if doing so limits exposure on major platforms. The decision reinforced a long-standing principle in real estate: transparency and broad exposure generally serve consumers, while choice and flexibility remain available when clearly explained.

While litigation continues, the ruling underscored the importance of informed consent and documented seller education.

The Agent’s Role: Education Over Advocacy

Private listings and private listing networks are tools. Like any tool, their effectiveness depends on how and why they are used.

The most successful agents are not defined by which option they favor, but by how well they educate their clients. Sellers deserve to understand what they stand to gain, what they may lose, and how each approach aligns with their goals. Buyers deserve clarity and fair access to available inventory. And agents must remain a trusted source of truth in an increasingly complex marketplace.

Why Brokerage Support Matters More Than Ever

Navigating these conversations requires more than personal experience. It requires a brokerage that supports transparency, compliance, and agent autonomy without pushing a single strategy that benefits the company over the client.

At Fathom Realty, agents are empowered to advise based on facts, fiduciary duty, and market realities, not brokerage-driven inventory goals. With flexible business models, modern technology, and an agent-first culture, Fathom gives professionals the freedom to serve clients ethically and confidently in any market environment. Ready to align your business with a brokerage that puts trust, transparency, and agent success first?

Explore how Fathom Realty supports agents at every stage of their career. Visit fathomcareers.com to learn more and start the conversation.