AUSTIN, Texas — Some Realtors in Austin are seeing an increase in "whisper" listings or "pocket" listings in an already competitive housing market.
A pocket listing is a real estate property that isn't listed on the area's public multiple listing service (MLS) but is instead marketed by specific brokers to a small group of exclusive buyers, keeping other brokers and buyers in the dark.
Remax Realtor Hope Teel said private sales aren't illegal and, typically, people do it for privacy reasons, but the controversial practice walks a fine line of violating fair housing laws.
"Who is that exclusive group of buyers that they are offering this estate to?" asked Teel. "How did they determined which buyers they are going to market this listing to?"
In 2020, the National Association of Realtors established a clear cooperation policy to crack down on this controversial practice. The policy requires all brokers to list homes on the multiple listing service within one business day of marketing a property so that everyone can have an opportunity to buy, but there are exceptions.
"Fair Housing Laws are in place for a reason because property should be marketed to everyone despite any criteria for who that buyer is," said Teel.
It's not just happening in Austin but nationally. According to Redfin, from November 2019 to March 2021, whisper listings increased by 67%, from 2.4% to 4% of home sales.
The analysis also said with the market being so competitive, nailing pocket listings helps brokers recruit new customers with the promise of exclusive access to listings. The broker also gets a chance to take home two fees instead of one by representing both the buyer and the seller.
Teel said the market is stabilizing a little but still very competitive. With a record low inventory, multiple offers per home are still high and buyers are still paying way over the asking price.
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