Pro-Consumer Trend: New York to Ban Private Listings, Making More Homes Visible to Buyers

Most people visit real estate websites when they kick off their home-buying process. In New York, a proposed state law would ensure they can actually view everything that’s for sale.  

The New York state Senate just unanimously passed the Fair and Transparent Real Estate Listing Act. If signed by the governor, real estate agents must market properties on free or publicly accessible channels, rather than through exclusive networks.

If enacted, New York would join Washington and Connecticut in banning so-called pocket listings. These private listings let brokerages handle real estate sales without posting the homes on their local multiple listing service (MLS).

Yes, transparency is now a real estate trend.

New York’s Fair and Transparent Listing Act: The Details

State Senator Nathalia Fernandez, the bill’s sponsor, says it’s meant to make sure potential buyers see all the homes for sale. With enthusiastic backing from the state-level Association of REALTORS®, the New York bill should soon be law. Once enacted, the law will mean:

• Sellers will use a free platform that does not force a buyer to work with the brokerage.

• The public advertisement will be released immediately.

Can there be exceptions? Yes. But to create a private listing, the seller would have to sign a form. This opt-out form would inform sellers that private listings receive “reduced visibility” and fewer offers. A broker who flouts the law would face fines up to $5,000 and risks losing their license.

Connecticut’s Law Takes Effect October 1, 2026

Connecticut’s new law, just signed by the governor and effective in October, says Connecticut homes for sale must be shown publicly, unless the seller makes a point of opting out with a signed form disclosing the financial implications. In short, private listings generally take longer, and bring in less money. That concern is reflected in reporting by Axios, as well as research carried out for Bright® MLS and Zillow®.  

Connecticut’s new law comes with a potential $5,000 fine and loss of licensing. Why such heavy penalties? Consider this. Broker-investors are waiting to scoop up boomers’ homes today. They might benefit from the ability to make deals without having their listings in the public view. Some prefer to act as the broker for both seller and buyer—and be paid by both.

But is that the way a healthy market works? 

A sponsor of the Connecticut law noted that some sellers never knew their listings were hidden from the public view. Now, they’ll know, and they’ll have a meaningful choice in the decision of how to list. Because the new law doesn’t prohibit pocket listings. In some situations, a seller’s desire to keep a sale on the down-low could be understandable—even if it means less profit. Let’s look closer at the reasons a seller might want privacy.

What’s the Point of a Secret Listing, Anyway?

Maybe the sale is the subject of a probate or divorce case, and so the matter is sensitive. Maybe it’s a celebrity who’d be swamped with unwanted attention if the word got out. Sellers might be concerned that openly advertising showings could attract sightseers, or even stalkers. In these circumstances, the parties could feel safer if they could handle a sale without attracting extra attention.

Or maybe it’s a senior deed holder selling to a younger relative. Often, an older adult wants to offer a gift of equity to a younger buyer. In that case, the unique aspect of the deal is the gift.  

If you’re set on selling to someone you’ve chosen, you may legally do that. Perhaps two brokers aren’t needed, and you can save money on commissions. In that case, do order an independent appraisal. And a word to the wise: sales that lack two distinct agents don’t bring in as much money.

Senior Home Sellers Do Better in Publicly Listed Sales

We’ve been observing for some time that when senior deed holders sell, their homes tend to need work. People who have lived in their homes for a long time, and who might have mobility challenges, could believe that getting the home ready to open up for showings would be too difficult.

They would usually do better, though, if they sold through open listings.

For most sellers, maximizing proceeds is the major goal in a sale. A private listing usually can’t do that. Opting for a private listing, or selling to an investment company, is simply not conducive to making top dollar on a sale.

In most cases, home sellers and home buyers need their own agents. This is because an agent commits to advancing the client’s best interests. Learn more with Deeds.com about your agent’s fiduciary duties.

What’s Next? Watch for a String of States to Ban Private Real Estate Listings

Washington and Wisconsin have brought forth their own listing transparency bills. Their real estate agents’ associations have worked for these bills to pass. And Zillow has been willing to fight in court for the cause. Zillow cites Washington and Wisconsin as examples in a “growing national movement” to ensure open access to homes for sale.  Zillow considers pocket listings a form of “manufactured scarcity” of homes available to deed seekers.

In Illinois, Zillow is waging a legal battle with the giant real estate brokerage Compass and the Chicago-area MLS, called Midwest Real Estate Data (MRED). By using a private listing network exclusive to real estate professionals, Zillow claims, that MRED and Compass are violating antitrust law.

The debate over private listings is now being taken up by Illinois lawmakers. A pending bill would require prompt, public listings unless the seller signs a disclosure form. The form has the seller acknowledge that going through with a pocket listing will lessen the home’s exposure to potential buyers and “negatively impact the seller’s ability to sell the listed property at terms favorable to the seller.” 

Meanwhile, Hawaii lawmakers are considering a bill to outlaw private real estate listings. Under this bill, a pocket listing would be deemed an unfair or deceptive trade practice. Pro-transparency backers include both the Hawaii Real Estate Commission and the Hawaii Association of Realtors.

Transparency Is the Best Policy for Our Hero, the Deed Seeker

Are companies that use non-public listing methods truly representing the best interests of their customers? Granted, there might be the rare case where privacy is truly a matter of safety. But in general, transparency helps the deed seeker.

Pocket listings have an element of exclusivity that tips the playing field in favor of those who already have the most advantages in the real estate market. If more people are to get access to deeds, transparency is vital. Buyers and sellers alike should be able to find local listings without running up against barriers to information, controlled by businesses.

Important note: This commentary is not legal or financial advice. See your licensed financial adviser and consult with reputable local real estate agents for individualized guidance that meets your state’s legal rules.