When you’re buying a home you want to make sure

you’ve exhausted all the possibilities

If you've only been looking for homes on the public aggregator websites, you are missing out on a large portion of Austin homes for sale.  A significant portion of Austin homes are actually sold by Realtors outside of the public market as private listings.  While the number of private sales vary from year to year, in July 2023 around 48% of Austin homes for sale for $1.5M or above were marketed privately outside of the Multiple Listing Service (MLS) and in July 2024 that number was around 22%. That means those homes don't show up on public-facing sites like Zillow, Redfin, or Trulia.

Understanding private market vs. public market home sales in Austin

There are three general places where you can find homes for sale in Austin.  The bulk of Austin homes for sale can be found on the MLS operated by the Austin Board of Realtors where those properties can be seen and searched by other Realtors with access to the MLS.  Realtors also have the ability to share search results with their clients, and a good Realtor will sift through the hundreds of available listings to find homes that meet a buyer’s criteria.  The general public, however, cannot directly access the MLS. 

That’s where third-party aggregators like Zillow or Redfin come in.  These sites often have agreements with the MLS which allow them to access and re-post the MLS listings on their third-party sites. As a result, these aggregators end up being a backdoor for the general public to see what is in the MLS.  These aggregator sites may also share listings from other sources like For Sale by Owner.  But even the aggregator sites are not a one-stop-shop – they only feature listings by agreement, and not all companies or Realtors allow their listings to be syndicated to these websites.  

Additionally, there are also homes available for purchase that are not publicly listed for sale.   This sales method is most common in higher price brackets.  To sell these homes agents utilize portals built to showcase private listings locally and nationwide.  Agents also rely on their personal networks to get these homes exposure.  These private sales go by many names such as off market homes, pocket listings, hidden homes, private exclusive, or quiet market. 

In Austin there are four major portals for searching private listings.  Three of those portals require an application and a substantial membership fee.  The membership fees are high, and some agents don’t meet the prerequisites to participate in these exclusive groups. That means that if your Realtor isn’t a member of those groups, you may not be seeing all the properties that fit your search criteria.

How many homes are sold off market in Austin?

Since these sales are not tracked by the Austin Board of Realtors, there is not a perfect way to calculate off market sales data other than to visit each of the off market portals and do our own manual tabulations.  Our research shows that there have been times when almost half of available Austin homes are being marketed privately outside of the MLS.  The number of homes for sale privately is often impacted by market conditions and seasonality. 

The number of private listings will also vary by locations and price point.  Some neighborhoods are more likely to have off market listings than others.  And as you might expect, off market sales are higher in more affluent areas of Austin.

Are off market sales effective?

It’s hard to measure the effectiveness of off market sales since they aren’t tracked along with the public sales data in the MLS and very little sold information is available in the portals themselves.  Most notably, we lack data on how long these private listings are on the market or where the final sales price landed.  While real data is lacking, we can say anecdotally, however, that the percentage of sellers and buyers we are personally helping with off market sales is increasing.  In many cases the off market properties meet a need that isn’t being satisfied in the MLS.  

Why would a seller choose to sell their home off market?

Sellers choose the off market route for a variety of reasons.  Some sellers want or need the added privacy and control over showings that comes from being off market.  Off market sales often include an added layer of vetting potential buyers by requiring proof of funds prior to showing.  The more hurdles in place prior to showings, the less likely sellers are to have their time wasted. 

Off market status is also a way to weigh interest and test the potential price before going on the MLS.  The negotiation metrics also shift since the seller has less risk if a deal falls apart without the publicity of the MLS.   The converse can also be true, with homes being pulled from the MLS temporarily to avoid being shopworn or accruing days on market during slower sales cycles.

The downside is that the seller will never know how the full force of market competition would have impacted the final sales price. With fewer people knowing a home is for sale, you significantly reduce the slate of potential buyers.  Whatever the seller chooses, he or she needs to be comfortable with the risk.

For buyers, let’s not forget the appeal of exclusivity.  Some people are attracted to the feeling of luxury and selectiveness of buying a home that isn’t available on the general market. Similar to a home that is coming soon, this can fuel a fear of loss that generates a sale before the home goes to the MLS. There can also be less competition since fewer people are aware the home is for sale.  As an added benefit, none of the portals track sold prices so buyers also get added privacy about their purchase.

How can buyers access homes sold off market?

It can be frustrating to realize you aren’t seeing the full array of homes for sale and potentially missing out on properties.  If you want to see more of the homes available for sale – especially luxury homes – you should work with a Realtor that has access to private listings.  

When interviewing a Realtor, always ask how they will find properties for you, and make sure they have access to all of the private listing portals.  In the off market arena, Realtor-to-Realtor relationships with other agents matter more than ever; so it can be beneficial to have a seasoned agent that has been in the business for a while with contacts across a variety of brokerages.

We scour all of the portals for you.

We make sure you don’t miss out on the right opportunity.  With our professional connections we are able to source homes from a myriad of sources that you won't find on conglomerate sites.   Whether its homes available on the Austin Luxury Network, properties marketed on the Top Agent Network, exclusive listings on Clubhouse, homes shared on ATX Pocket, listings offered for sale by owner, or homes recently withdrawn, we won't leave any stone unturned when it comes to finding the right property for you.  

If you want help finding your place in Austin or selling your home off market, reach out for some candid advice and experienced guidance.

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