Why Private Listings Are Usually a Terrible Idea for San Francisco Sellers

By now most of you know how I feel about private listing networks. I have talked about them for years because they chip away at the thing that matters most in real estate. Trust. Sellers deserve transparency. Buyers deserve a fair shot. And agents should not be trafficking in secrets when a client’s biggest asset is on the line.

But instead of talking about the theory, let’s talk about how this plays out in real life here in San Francisco.

I had dinner with an agent friend who got a call about a so-called great private listing. It was sitting quietly on one brokerage’s in-house network. No MLS. No public visibility. No chance for buyers working with other firms to even know it existed unless someone happened to whisper it to the right person.

He showed it. His buyer loved it. But he was stunned by the price. He believed it was underpriced by roughly three hundred thousand dollars. They offered full price. The seller declined. They offered slightly above. The seller accepted. It closed.

Here is the part that keeps me up at night. He told me that if he were the seller, he would be furious. Because once that home traded hands, the truth became obvious. With full exposure, it would have attracted more buyers. It would have generated competition. It would have sold for more. In a city where homes regularly receive multiple offers, choosing to hide a listing is like choosing to leave money on the table.

And here is the data that should stop every seller in their tracks. Homes sold privately sell for less. Not a little less. On average, they sell for 18 percent less than publicly marketed properties. Eighteen percent. That is not strategy. That is a self-inflicted wound.

In San Francisco, where every dollar of equity matters, that difference can mean another decade in the home you love or the opportunity to buy the home you want next. It can mean funding a remodel, paying down debt, or shaving years off your financial goals. Losing eighteen percent because a listing was tucked away behind a brokerage’s velvet rope is not sophistication. It is sabotage.

Private networks also break the most basic part of the market. Price discovery. Real pricing happens when the full market responds. Not when a handful of agents are invited to play in someone else’s sandbox. Without broad exposure you cannot know the true demand. You cannot know the true value. You cannot protect the seller’s best interest.

San Francisco buyers are discerning. They study neighborhoods, school zones, microclimates, and architectural eras. They look at data. They watch trends. They are not casual participants. They deserve access to every available home. And sellers deserve every qualified buyer.

So why do private listings exist? Because brokerages benefit from controlling information. They get to keep both sides of the deal. They get to look powerful because they have “inventory.” But that power does not serve the seller. It serves the firm.

If someone tells you they have a secret network that will get you a better price, ask them for proof. Ask them if they are willing to guarantee the outcome in writing. Ask them why, if their approach is so strong, the data says the opposite.

In a city like San Francisco, the market works. People show up. Competition happens. Homes sell for what they are worth because buyers have the chance to respond. Strip that away, and you strip away your leverage.

As a seller, you deserve full visibility. You deserve honest pricing based on real demand. You deserve a market that reflects the true value of your home. You deserve representation that puts your outcome above a brokerage’s ego.

Are there times that a private listing makes sense? Absolutely. Private circumstances sometimes call for private listings. And your agent should fully understand your needs and motivation for selling, and you should understand that money will almost definitely be left on the table. But these situations are few and far between.

Private listings are not innovative. They are not chic. They are not strategic. They are a shortcut that costs sellers real money.

If you want to talk about how to position your home for maximum exposure, maximum competition, and maximum result, reach out. I will always choose the path that protects your equity, your confidence, and your future.