If you’ve been house hunting lately, you’ve probably seen properties labeled “off market” and wondered what that actually means. Or maybe you’re thinking about selling and someone mentioned you should try selling “off market” first.
Here’s the straightforward answer: Off market means a property that is for sale (or could be for sale) but isn’t publicly listed on the Multiple Listing Service (MLS) or major real estate websites like Zillow, Realtor.com, or Redfin.
Think of it like this: most homes for sale are advertised everywhere—yard signs, MLS listings, online photos, open houses. Off-market properties are the opposite. They’re available quietly, behind the scenes, usually through word of mouth, agent networks, or private connections.
In this guide, I’ll explain everything you need to know about off-market properties, whether you’re buying or selling. We’ll cover what off market really means, why people choose this route, how to find these hidden properties, and whether it’s the right choice for you.
Understanding Off Market: The Basics
Let’s start with some important definitions.
What Is the MLS?
The Multiple Listing Service (MLS) is the main database that real estate agents use to list and share properties with each other. When a home is listed on the MLS, it gets distributed to public websites like Zillow and Redfin where anyone can see it.
The MLS gives properties maximum exposure. Every agent in the area can see the listing, bring buyers to tour it, and make offers. This is the “traditional” way to sell a house.
What Makes a Property “Off Market”?
A property is considered off market when it’s:
- Not listed on the MLS
- Not advertised publicly on major real estate websites
- Not marketed with yard signs, open houses, or mass advertising
However, off market doesn’t always mean the same thing. The term is used in different ways depending on the context.
Two Different Meanings of “Off Market”
Meaning #1: On Home Search Websites
When you see “off market” on Zillow or Redfin, it usually just means the property isn’t currently for sale. It might have sold recently, the listing expired, or the seller took it off the market temporarily. This doesn’t mean the owner wants to sell—it’s just a status label showing there’s no active listing.
Meaning #2: In the Real Estate Industry
When agents and investors talk about “off market,” they mean properties that are available for sale but being marketed privately. These are also called:
- Pocket listings (the agent keeps it in their “pocket”)
- Private listings
- Exclusive listings
- Pre-market listings (coming soon but not listed yet)
These properties ARE for sale—they’re just not advertised publicly.
Types of Off-Market Properties
Not all off-market properties are the same. Here are the main types you’ll encounter:
1. Pocket Listings
These are properties that a real estate agent knows about but hasn’t listed on the MLS yet. The agent shares the property only with:
- Other agents in their brokerage
- Select clients who fit the property profile
- Their personal network of buyers
Pocket listings are often used for high-end homes, celebrity properties, or sellers who want privacy.
2. For Sale By Owner (FSBO)
Some homeowners sell directly without hiring an agent. They might:
- Post on Facebook Marketplace or Craigslist
- Put up a yard sign
- List on FSBO.com or ForSaleByOwner.com
- Rely on word of mouth
These aren’t on the MLS because there’s no agent involved. The owner handles everything themselves.
3. Pre-Foreclosure and Distressed Properties
Homes in financial trouble often sell off market:
- Owners facing foreclosure want to sell quickly and quietly
- Short sales (selling for less than the mortgage balance)
- Properties with tax liens or unpaid property taxes
These owners often prefer private buyers who can close fast. Learn more about selling a house with unpaid property taxes.
4. Inherited and Estate Properties
When someone inherits a house, they often want to sell quickly without the hassle of traditional listing. Executors handling estate sales prefer off-market deals to:
- Settle estates faster
- Avoid months of showings and open houses
- Split proceeds among heirs quickly
Selling inherited property is a perfect example where off-market sales make sense.
5. Divorce Sales
Couples going through divorce often need to sell their home fast and quietly. They don’t want:
- Neighbors knowing their business
- Months of showings while living together
- The stress of traditional sales during an already difficult time
Selling during divorce is another situation where off-market sales are common.
6. Problem Properties
Homes with major issues often sell off market:
- Fire-damaged houses
- Hoarder houses needing extensive cleanup
- Fixer-uppers requiring major repairs
- Properties with foundation or structural issues
These sellers know traditional buyers will be scared off by the problems. Off-market sales to investors or cash buyers make more sense.
Why Do Sellers Choose Off-Market Sales?
Understanding why people sell off market helps you find these properties or decide if it’s right for you.
1. Privacy and Discretion
Some sellers value privacy above all else:
- Celebrities and public figures don’t want the public knowing about their home sale
- High-net-worth individuals prefer discretion with luxury properties
- Professionals (doctors, lawyers, executives) want to keep their move quiet
- Anyone going through personal issues (divorce, bankruptcy, health problems) prefers to avoid public scrutiny
2. Avoiding the Hassle
Traditional sales require a lot of work:
- Deep cleaning and decluttering
- Staging the home to look perfect
- Constant showings and open houses
- Keeping the house “show-ready” for weeks or months
- Dealing with lots of strangers walking through
Some sellers just don’t want the hassle. They’d rather sell privately to one buyer and skip all that stress.
3. Testing the Market
Off-market listings let sellers test the waters without commitment:
- See what offers come in
- Gauge buyer interest
- Understand market value
- No “days on market” counting against them if it doesn’t sell
If they don’t get the price they want, they can either list publicly later or just stay put.
4. Speed and Convenience
Some situations demand fast sales:
- Job relocation across the country
- Financial hardship or foreclosure
- Settling an estate
- Downsizing for retirement
These sellers care more about closing quickly than getting the absolute highest price. They’ll accept a fair cash offer to move on with their lives.
5. Condition of the Property
When a house needs major work, many sellers go off market because:
- They don’t want to invest in repairs
- They know traditional buyers won’t qualify for loans on problem properties
- Investors and cash buyers are the realistic buyer pool anyway
- Companies that buy houses in any condition are their best option
6. Controlling the Narrative
Some sellers want control over:
- Who sees the property
- How it’s marketed
- What information is shared
- When showings happen
Off-market sales give them that control.
How Buyers Can Find Off-Market Properties
Finding off-market properties takes more work than browsing Zillow, but it’s worth it for the right buyers. Here’s how to do it.
1. Work With a Well-Connected Agent
This is the single most effective strategy. A experienced local agent with a strong network:
- Knows about pocket listings in their brokerage
- Hears about upcoming listings before they go live
- Has relationships with other agents who share off-market opportunities
- Can reach out to homeowners on your behalf
Tell your agent explicitly: “I’m interested in off-market properties.” Make it clear you’re a serious buyer ready to move quickly.
2. Network Like Crazy
Tell everyone you know that you’re looking to buy:
- Family and friends – They might know someone planning to sell
- Neighbors in your target area – They know when people are moving
- Local business owners – Barbers, mail carriers, landscapers hear neighborhood gossip
- Contractors and property managers – They work in homes and know which owners are struggling
According to the National Association of Realtors, approximately 10-20% of transactions in some markets happen off the MLS, showing that networking and connections really matter.
3. Join Real Estate Investor Groups
Even if you’re not an investor, these groups share off-market deals:
- Local real estate meetups
- Facebook groups for your area
- BiggerPockets forums
- LinkedIn real estate groups
Investors find deals and sometimes wholesale them (sell the contract) to other buyers.
4. Search Public Records
You can find properties where owners might be motivated to sell:
- Pre-foreclosure notices – Homeowners behind on payments
- Tax lien properties – Owners who owe back taxes
- Probate records – Recently inherited homes
- Divorce filings – Couples who’ll need to sell
Many counties have online property records you can search for free.
5. Drive for Dollars
This old-school technique still works:
- Drive through neighborhoods where you want to buy
- Look for properties that appear:
- Vacant or abandoned
- Poorly maintained
- Overgrown with weeds
- With pile-up mail or newspapers
Write down addresses and send letters to the owners expressing interest in buying.
6. Send Direct Mail Campaigns
Create a targeted list of homeowners in your desired area and send letters:
- Keep it friendly and personal (handwritten is best)
- Explain why you love the neighborhood
- Mention you’re ready to buy without the hassle of listings
- Include your contact info
Response rates are low (1-3%), but the leads you get are often motivated sellers.
7. Check FSBO Websites
Search sites like:
- ForSaleByOwner.com
- FSBO.com
- Craigslist
- Facebook Marketplace
Look for homes listed by owners directly.
8. Use Off-Market Platforms
Some specialized platforms focus on off-market properties:
- PropertyRadar
- PropStream
- DealMachine (for investors)
- LoopNet (commercial properties)
These services often charge fees but provide access to off-market opportunities.
The Pros and Cons of Off-Market Properties
Let’s be honest about the advantages and disadvantages for both buyers and sellers.
For Buyers:
PROS: ✅ Less competition – Fewer buyers mean less chance of bidding wars ✅ Early access – You see properties before they hit the market ✅ Potentially better deals – Motivated sellers may accept lower prices ✅ More flexible negotiations – Without competing offers, you have more leverage ✅ Exclusive opportunities – Access to properties others never see
CONS: ❌ Harder to find – Takes significant time and effort ❌ Limited inventory – Far fewer off-market properties than on-market ❌ Less transparency – Fewer comparable sales to judge fair value ❌ Not always cheaper – Some sellers expect premium prices for privacy ❌ More due diligence needed – Properties may have hidden problems
For Sellers:
PROS: ✅ Privacy maintained – No public listings, yard signs, or open houses ✅ Less preparation needed – Don’t have to stage or make it picture-perfect ✅ Avoid days on market – If it doesn’t sell, you’re not “tainted” by time on market ✅ Control who sees it – Only serious, pre-qualified buyers ✅ Faster process – Often close quicker than traditional sales ✅ Test market value – See what offers come in without commitment
CONS: ❌ Less exposure – Fewer potential buyers see your property ❌ Potentially lower sale price – Limited competition may mean lower offers ❌ Smaller buyer pool – You’re marketing to a select group ❌ Harder to comp – Fewer recent sales to support your asking price ❌ Agent limitations – Not all agents are skilled at off-market sales
Off-Market Sales: What the Numbers Show
Let’s look at some real data about off-market transactions.
Market Share: According to Redfin’s latest research, approximately 1.2 million pocket listings were sold in the U.S. in 2024. That represents nearly 30% of all home sales happening off the MLS when you consider total sales of 4.06 million homes.
Texas and Florida lead the nation in off-market sales volume.
Price Differences: A 2013 study found that homes sold off-market averaged sales prices 9% to 17% less than comparable MLS-marketed properties. However, this doesn’t account for the money sellers save on:
- Agent commissions (5-6%)
- Repairs and staging
- Carrying costs during longer sale periods
Time on Market: Off-market sales to cash buyers typically close in 7-14 days versus 30-60+ days for traditional MLS sales.
Legal Considerations and NAR’s Clear Cooperation Policy
If you’re selling off market, you need to understand the rules.
NAR Clear Cooperation Policy
In May 2020, the National Association of Realtors implemented the Clear Cooperation Policy. Here’s what it means:
The Rule: If a property is being “publicly marketed” (yard signs, email blasts, advertising), it must be entered into the MLS within one business day.
What This Allows:
- True pocket listings shared only within a brokerage
- Private sales without any public marketing
- Office-exclusive listings (within one company only)
- Pre-MLS negotiations before official listing
What It Prohibits:
- Advertising a home with a “For Sale” sign but not listing it on MLS
- Mass marketing via email or social media without MLS listing
- Keeping properties “in your pocket” while publicly advertising them
The policy aims to ensure fair housing practices and prevent agents from hiding properties from certain buyers.
Disclosure Requirements
Important: Selling off market doesn’t exempt you from disclosure laws. You still must:
- Disclose all known material defects
- Provide required seller disclosures forms
- Be honest about property condition
- Follow state and local regulations
Hiding problems can get you sued, even in an off-market sale.
Fair Housing Compliance
Off-market sales have been controversial because historically they were used to:
- Hide properties from minority buyers
- Create exclusive access based on race, religion, or ethnicity
- Discriminate against protected classes
Today’s fair housing laws prohibit discrimination based on:
- Race
- Color
- Religion
- Sex
- Disability
- Familial status
- National origin
Agents and sellers must market to all qualified buyers, even in private sales.
How to Sell Your Home Off Market
If you’re a seller considering the off-market route, here’s how to do it right.
Step 1: Decide If Off-Market Makes Sense
Ask yourself:
- Do I need privacy more than I need top dollar?
- Is my house in rough condition that would scare off traditional buyers?
- Am I in a hurry to sell?
- Can I afford to wait for the right buyer without broad exposure?
If you answered yes to these questions, off market might work.
Step 2: Choose Your Approach
Option A: Work With an Agent
Find an agent experienced in off-market sales who:
- Has a strong network of buyers and investors
- Understands your goals
- Can market privately without violating Clear Cooperation rules
Make sure they agree to keep it off the MLS if that’s what you want.
Option B: Sell to a Cash Buyer
Companies that buy houses for cash specialize in off-market purchases:
- They make offers within 24-48 hours
- Close in as little as 7-14 days
- Buy in any condition
- No repairs, staging, or showings needed
This is the fastest, most private option. Learn how to sell your house fast through this method.
Option C: For Sale By Owner
Sell it yourself through:
- Word of mouth
- Social media in local groups
- FSBO websites
- Yard sign (though this triggers MLS requirements if you have an agent)
This saves commission but requires more work on your part.
Step 3: Price It Right
Without MLS comps and competition, pricing is tricky:
- Get a professional appraisal or CMA (Comparative Market Analysis)
- Research recent off-market sales in your area
- Be realistic about condition
- Factor in the value of speed and convenience
Don’t overprice just because it’s “exclusive.” Serious buyers know the market.
Step 4: Market Strategically
Even off market, you need to reach qualified buyers:
- Have your agent share with their network
- Reach out to known investors in your area
- Post in private buyer groups
- Leverage personal connections
The key is targeted marketing to serious buyers, not mass advertising.
Step 5: Vet Buyers Carefully
Since you have fewer buyers, make sure they’re qualified:
- Request proof of funds (for cash buyers)
- Get pre-approval letters (for financed buyers)
- Check buyer history and references
- Work with experienced buyers who close reliably
Don’t waste time with window shoppers.
Common Misconceptions About Off-Market Properties
Let’s clear up some myths.
Myth #1: “Off market always means cheaper”
Reality: Sometimes off-market properties cost MORE because sellers expect a premium for privacy and convenience. It depends entirely on seller motivation.
Myth #2: “Off market means something is wrong with the property”
Reality: While some off-market properties have issues, many are in great condition. The seller might just value privacy or speed over maximum exposure.
Myth #3: “You can’t get financing for off-market properties”
Reality: You can absolutely get a mortgage for an off-market purchase, as long as the property appraises and you qualify. Many off-market sales do involve traditional financing.
Myth #4: “Off market sales are sketchy or illegal”
Reality: Off-market sales are completely legal when done properly. They’re just a different marketing approach.
Myth #5: “Only rich people can access off-market properties”
Reality: Anyone can find off-market deals with effort and the right connections. You don’t need to be wealthy—you need to be proactive.
When Off-Market Makes Perfect Sense
Off-market sales work best in specific situations.
For Sellers:
- High-profile individuals needing privacy
- Properties with major repair needs
- Inherited homes from out-of-state heirs
- Divorce situations requiring quick, quiet sales
- Homeowners facing foreclosure or financial hardship
- Estates that need to settle quickly
- Sellers who don’t want to prepare their home for public showings
Selling in a slow market? Off-market might be your best strategy.
For Buyers:
- Investors looking for deals
- Buyers tired of losing bidding wars
- People seeking specific properties in tight markets
- Those with cash ready to close quickly
- Buyers willing to do extra legwork for exclusive access
The Future of Off-Market Real Estate
The off-market segment is growing. Here’s why:
- More sellers want privacy in the digital age where everything is online
- Buyers want to avoid competition in tight markets
- Technology makes private networking easier through apps and platforms
- Cash buyers and investors prefer off-market deals
- Sellers with problem properties know off-market is their best option
However, regulatory pressure from NAR and fair housing advocates may continue to limit how off-market properties can be marketed.
The key is finding the balance between private sales and fair access for all qualified buyers.
Final Thoughts: Is Off Market Right for You?
Off market doesn’t mean better or worse—it’s just different.
For Buyers: If you’re willing to put in extra effort, build relationships, and move quickly when opportunities arise, off-market properties can give you access to homes others never see. But don’t assume they’re always cheaper or better deals. Do your homework.
For Sellers: If you value privacy, speed, and convenience over maximum exposure and sale price, off market might be perfect. Just understand you’re trading broad market exposure for discretion and a faster process.
The bottom line: Off-market sales are a legitimate, growing part of the real estate market. They work best when both parties benefit from privacy, speed, and direct negotiation.
Whether you’re buying or selling, understanding what “off market” really means helps you make smarter real estate decisions.
Ready to Sell Your Home Off Market?
If you’re considering selling your house quickly and privately, 123 We Buy House specializes in off-market purchases throughout New York.
Why Choose Us:
- Fast cash offers within 24-48 hours
- Close in as little as 7 days on your timeline
- Buy houses in any condition – no repairs needed
- Completely private – no MLS listing, no showings, no open houses
- No agent commissions – keep more money in your pocket
- Handle any situation – divorce, foreclosure, inheritance, relocation
We’ve helped hundreds of homeowners sell their houses fast in New York without the stress of traditional sales.
Whether you need to sell because of divorce, foreclosure, inheritance, relocation, or you just want to skip the hassle—we make it simple.
Get your free, no-obligation cash offer today and experience the benefits of a true off-market sale.
Frequently Asked Questions
Q: Is it legal to sell a house off market?
Yes, completely legal. Off-market sales are a legitimate way to buy and sell real estate. Just make sure you follow disclosure laws and fair housing regulations.
Q: Do I need a real estate agent for an off-market sale?
No, you don’t need an agent. You can sell directly to a buyer or cash home buying company. However, an experienced agent can help you navigate the process and find qualified buyers. Learn about selling without a realtor.
Q: Are off-market homes cheaper?
Not always. It depends on the seller’s motivation. Some off-market properties sell for less because sellers prioritize speed over price. Others sell for premium prices because buyers pay for exclusivity and privacy.
Q: How do I know if an off-market price is fair?
Get a professional appraisal or comparative market analysis (CMA) from a local agent. Research recent sales of similar properties in the area, both on and off market, to understand fair value.
Q: Can I still get a mortgage for an off-market property?
Yes. As long as the property appraises and you qualify, you can get traditional financing for an off-market purchase.
Q: What’s the difference between off-market and pocket listing?
They’re essentially the same thing. “Pocket listing” specifically refers to properties that an agent knows about but hasn’t listed on the MLS. “Off market” is the broader term that includes pocket listings, FSBO sales, and any property not publicly listed.
Q: How long does an off-market sale take?
It varies widely. Cash sales can close in 7-14 days. Financed off-market sales typically take 30-45 days, similar to traditional sales.
