In today’s competitive real estate market on Cape Cod, you might come across the idea of buying a home that isn’t publicly listed—also known as an off-market or pocket listing. These properties aren’t advertised on the Multiple Listing Service (MLS) but are instead shared through private real estate brokerage networks. While this might sound like a secret way to get ahead of the competition, there are some serious risks to consider before going down this path.
1. You Might Overpay
When a home is listed on the MLS, it’s open to all potential buyers, creating competition that helps determine a fair price. With pocket listings, there’s no open bidding process, so you could end up paying more than the home is actually worth. Without competitive offers to gauge the price, it’s easier to get stuck in a deal that isn’t in your favor.
2. Less Protection for You as a Buyer
MLS-listed properties come with standard protections like required disclosures and oversight. Off-market deals can sometimes be a bit murkier, with less transparency about potential problems—think undisclosed property issues or title complications. Without these safeguards, you might run into unpleasant surprises.
3. You Could Miss Out on Better Homes
Focusing on pocket listings means you’re narrowing your search, potentially missing out on better homes in your price range. Just because a home isn’t publicly listed doesn’t mean it’s a hidden gem—sometimes, the best deals are right there on the open market.
4. Ethical and Legal Concerns
Some pocket listings can create ethical dilemmas. The National Association of Realtors (NAR) has even put policies in place to limit them because they can lead to unfair housing practices. If an agent is pushing you toward off-market deals, it’s worth questioning whether they have your best interests at heart or if they’re prioritizing their own connections.
5. Seller Indecision
Sometimes sellers use off market listings to test the waters on the asking price. Without the competition from the open market, when they get an offer they can be indecisive
Final Thoughts
While buying an off-market home might seem like an exclusive opportunity, the risks can easily outweigh the rewards. The best way to ensure a smooth home-buying experience is to work with an ethical, experienced REALTORr® and focus on MLS-listed properties.
If you’re searching for a home and want to make a smart investment, make sure you explore all available options with a trusted professional by your side. That way, you’ll avoid hidden pitfalls and find a home that’s truly right for you.
