Home search sites always use the label “commercially available,” but it doesn’t always mean the same thing. For buyers and sellers, the difference is important.
In real estate, the term “off-market” is used in a variety of ways, and its meaning largely depends on the context. Whether it’s San Francisco, CA or Burlington, VT, understanding what off-market means and how it works can help you understand what you’re looking at and how it impacts property availability and visibility.
>>See details: How to find off-market properties
What does it mean if the property is off the market?
In the real estate industry, “off market” means that a home is not listed on the Multiple Listing Service (MLS) and therefore not available for sale to the public. A property may be off the market because it’s not listed for sale, the listing has expired, the seller has temporarily stopped marketing, or the home is only being shared through a professional network of real estate agents.
This term can be confusing, as “off-market” is used to mean different things in different contexts. On home search sites like Redfin, that usually means there are no properties currently listed for sale based on available data. But for real estate agents and investors, “off market” can refer to homes that are listed for sale but are not publicly advertised and sold privately.
The MLS is the primary database used by real estate agents to share property information with each other and distribute it to public home search sites. Homes that are not actively listed for sale on the MLS are generally considered off-market.
What is off-market real estate?
Off-market properties may be for sale, but are not listed on the MLS or major home search sites. In these cases, properties may be shared through agents, word of mouth, or professional groups. These off-market properties are sometimes referred to as pocket listings, private listings, or exclusive listings.
In accordance with the MLS’ clear cooperation policy, listing agents are required to submit homes to the MLS within one business day to allow fair opportunity and access if there is a for sale sign or other public advertisement. Off-market properties are not publicly sold or shared as active listings on the MLS.
Off-market properties are different from homes marked as “off-market” on search sites. This often means the home is not listed in active listings.
How are homes sold off-market?
When selling your home off-market, the sales process itself is usually the same as most other real estate transactions. The buyer makes an offer, the parties sign a contract, and the transaction proceeds through an inspection, appraisal (if necessary), and closing. The biggest difference is how homes are marketed and discovered.
Non-market housing is typically shared in some limited ways. Some properties are distributed through agent networks or broker-only listings, where property information is shared only within the company or with selected agents and clients before the home is listed on the MLS. Other properties are sold as pocket listings, meaning the seller lists the home with an agent but chooses not to sell it publicly. In some cases, homes are sold through word of mouth and direct outreach such as referrals, letters to buyers, and investor networks.
Why do sellers choose to sell off-market?
When a home is sold off-market, reduced exposure can result in fewer offers and a less competitive final sale price. However, there are several reasons why sellers may choose to sell off-market.
Privacy: Selling off-market can limit public photos, open houses, and visibility on listing sites, which can be attractive to sellers who want a quieter sales process, such as public figures or celebrities. More control and less potential hassle: Because only selected buyers view homes, sellers have more choice in timing, logistics, and inspections. Testing the market: Some sellers use off-market exposure to gauge buyer interest and price before deciding whether to go public. Target specific buyers: Helps sellers reach a smaller, more qualified group of buyers, such as developers and investors, especially if the home doesn’t qualify for traditional financing. Other Opportunities: A home may not be for sale, but a willing buyer may contact the current owner to inquire about private sale opportunities.
Can I buy a house that is off the market?
In some cases, it’s possible, but it depends on why the home is off the market. Some off-market homes are for sale privately, but homes listed as “off-market” on public listing sites are not actively for sale and may not be available.
You may be able to purchase an off-market home depending on the following conditions:
Seller’s Intent: Some owners are open to offers without a public listing, while others have no plans to sell. How homes are sold: Homes shared privately through agents and networks may be available, but removals or suspensions are more uncertain. Timing and motivation: Life changes, relocation, or market trends can make sellers more receptive to out-of-market offers. Buyer flexibility: Off-market transactions often proceed on the seller’s terms, which can affect price, contingencies, or timing.
Is it a good idea to buy or sell off-market?
Off-market home purchases are centered around more specific buyer and seller goals and timelines.
Selling off-market makes sense if privacy, convenience, and timing are top priorities for sellers. For buyers, off-market opportunities mean access to homes they wouldn’t otherwise see, and they may be more focused on location and desirability rather than outbidding competing offers.
However, selling off-market can reduce your exposure and potentially result in fewer offers, which can affect your final price. Buying off-market can result in less transparency, fewer comparable sales available, and no guarantee of a “good” deal.
Ultimately, while off-market deals can work well in some situations, it’s best to consult with an experienced real estate agent to develop a buying and selling strategy that best suits your personal goals.
FAQ
Is it cheaper to buy commercially available products?
Buying off-market does not necessarily mean a better deal. By nature, off-market homes are not publicly advertised and may have less competition, but the price is more likely to be based on the seller’s goals rather than the local market. Like any other home transaction, off-market homes can sell below market price, at same market price, or above market price.
Is off-market listing legal?
Although it is legal to sell a home off-market, there are certain MLS and industry rules that real estate agents must follow regarding when and how they can publicly sell properties. Although clear cooperation policies aim to ensure that all buyers find homes available for sale, there are still scenarios in which off-market properties are circulated through private networks.
Can first-time buyers buy off-market?
First-time homebuyers can also purchase off-market homes, but those opportunities may be difficult to find. Off-market real estate sales can be more advantageous for cash-rich buyers, as traditional financing can be more difficult or less attractive. Working with a real estate agent with a wide professional network may increase your chances of finding an off-market home.
