In high-value markets like Chicago, many top properties sell every day without ever being listed publicly because of the private listing network, and this network helps sellers get top dollar for their properties. The private listing network is a network of word-of-mouth listings that agents share with each other. By keeping the listing off the MLS, and selling directly to clients through other agents instead of through the public markets, many agents get top dollar for their properties.
How the Private Listing Network Works
Here’s how the process typically works: An agent has a client with a house they wish to sell, typically one that is a high value for the area. The house is photographed and staged, but instead of listing it with the MLS, the agent sends it to other local members of the chosen private listing network. The agent may also have a personal network of agents that receive the listing. This often brings a buyer to light right away. If it does not, the agent may have a broker’s and agent’s open house, giving other agents a chance to see the house and suggest it for their own clients.
Benefits of the Private Listing Network
In a high-value market like Chicago, a private listing network carries several benefits. First, agents with high net worth buyers can often attract new clients when they offer access to a private listing network. For sellers, this means a pool of qualified buyers and investors who are ready to purchase and have the funds for a high-value purchase. It also protects sellers from having to host showings and open houses.
Often, sellers can get a higher asking price when selling through a private listing network rather than the open market. It allows them to test the waters for their desired price before starting the “listing date” clock on an official listing. In the end and often with the help of a real estate lawyer, private listings can sell more quickly and for a better price than public.
Disadvantages of the Private Listing Network
Like all selling options, the private listing network carries some disadvantages. Primarily, sellers must rely solely on their agents to market the properties, as they aren’t listed publicly for buyers to find on their own. Also, in a high-value market like Chicago, there can be a large number of listings in the private network every month, increasing competition for the buyer pool.