Do Private Listings Work?
The "Notorious" Reality of Market Exposure
The lack of broad market exposure typically
results in a higher matched
price for the seller."
— Inspired by Hahn (2026)
For years, the real estate industry has operated under a widely accepted assumption: maximum exposure produces maximum price.
Industry analyst Rob Hahn recently highlighted a neutral academic study by Dr. Darren Hayunga that challenges this long-standing belief. The research suggests that the “market microstructure” of a sale—how a home is introduced to the market—may materially affect seller outcomes, sometimes more than broad public exposure itself.
Key Findings from Hahn’s Analysis
The Negotiation Discount of the Open Market
One of the study’s most notable findings is that publicly marketed listings may experience a measurable negotiation discount.
According to the economic analysis cited by Hahn, homes exposed broadly to the public market may sell for approximately 1.6% less than comparable privately negotiated transactions.
Why? Because public listings provide buyers with market visibility and leverage. Buyers can track price reductions, Days on Market, and listing history—signals that often encourage negotiation and downward pricing pressure.
The Stigma of Public Days on Market
Once a listing enters the MLS, Days on Market begins accumulating publicly.
Extended market time may create adverse signaling, causing buyers to perceive a property as stale or overpriced regardless of its actual value.
The Privacy Premium
In contrast, the study suggests that private listings may generate a measurable pricing premium.
Hahn notes that privately marketed transactions showed an average 1.7% sale-price premium relative to public listings.
For luxury properties, where exclusivity and scarcity significantly influence buyer psychology, that premium reportedly rises to more than 8%.
Why Private Listings May Perform Better
The explanation offered is not merely privacy—it is pricing psychology.
Private listings prevent buyers from accessing the public signals that often drive negotiation:
Days on Market, price changes, prior listing history, and visible public exposure.
Without those signals, sellers may retain stronger negotiating leverage and preserve the perception of exclusivity.
The Clear Cooperation Policy Debate
These findings also raise questions regarding the industry’s Clear Cooperation Policy (CCP), which broadly requires listings to be submitted to the MLS within a defined timeframe.
Hahn argues that by limiting private listing strategies, such policies may remove a potentially advantageous marketing option for sellers—particularly those in premium and luxury market segments.
Why This Matters to Sellers
The takeaway is not that every home should be sold privately.
Rather, the data suggests that exposure strategy should be tailored to the asset, seller goals, and market conditions.
At The Rowland Group, we evaluate whether public or private market exposure is the most strategic approach based on each property’s unique positioning.
Source
Hahn, R. (2026, April 9). A neutral economics study on pocket listings. Notorious ROB.
https://www.notoriousrob.com/a-neutral-economics-study-on-pocket-listings/