Tony Accardo March 31, 2025
In the dynamic world of real estate, the strategy of pre-marketing properties—introducing homes to select audiences before their official listing on Multiple Listing Services (MLS)—has sparked considerable debate. A recent analysis by Compass, a leading real estate brokerage, sheds light on the potential advantages of this approach for sellers.
Key Findings from Compass's Analysis
According to Compass's study, homes that underwent pre-marketing through their Private Exclusives or Coming Soon channels experienced notable benefits:
Higher Sale Prices: These properties achieved an average sale price increase of 2.9% compared to those listed directly on the MLS.
Faster Offers: Once listed on the MLS, pre-marketed homes received accepted offers 20% sooner—approximately eight days earlier—than their non-pre-marketed counterparts.
Reduced Price Reductions: There was a 30% decrease in the likelihood of price drops for homes that were pre-marketed.
Dave Crosby, Chief Data Officer at Compass, interprets these findings as a positive indication that extending the marketing period before an MLS listing can enhance seller outcomes. He emphasizes that this supports the notion that sellers should have more autonomy in deciding how and when to market their properties.
The Broader Industry Debate
The practice of pre-marketing intersects with the National Association of Realtors' (NAR) Clear Cooperation Policy, which mandates that properties must be listed on the MLS within one business day of any public marketing. Compass CEO Robert Reffkin has been a vocal critic of this policy, arguing that it limits seller choice and flexibility. Conversely, opponents of pre-marketing contend that private listings may reduce market transparency and potentially disadvantage buyers by restricting access to available properties.
Contrasting Perspectives
While Compass's data highlights the benefits of pre-marketing, other studies present differing views. For instance, an analysis by Zillow found that homes sold without MLS exposure resulted in an average loss of nearly $5,000 per home, suggesting that MLS listings might offer broader market reach and potentially higher sale prices.
The discourse on pre-marketing underscores the importance of tailoring selling strategies to individual circumstances. Sellers should collaborate closely with their real estate agents to determine the most effective approach, considering factors such as market conditions, property specifics, and personal preferences. As the industry continues to evolve, staying informed about various marketing strategies and their implications remains crucial for achieving optimal outcomes in property transactions.
For a detailed exploration of Compass's findings, refer to the original article on Real Estate News.
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