Are we heading into a more European type real estate world?
Picture this: you're scrolling through your favorite real estate app, carefully filtering by price, location, and all your must-haves, only to discover that half the homes in your budget never even show up in your search. It sounds like a glitch, but according to industry analyst Brian Boero, this scenario is becoming reality as "exclusive" and pocket-listing strategies gain momentum across the country.
The warning Boero issued this week centers on a fundamental shift that could completely reshape American real estate. Luxury brokers and platforms like Compass have been popularizing tactics that keep certain listings away from the traditional Multiple Listing Service system that has powered home buying and selling for decades. What started as a high-end marketing strategy is now threatening to splinter the entire foundation of how properties get bought and sold.
The MLS has worked so well precisely because it operates on a simple principle: nearly every broker shares their data in one massive, accessible pool. When a property goes on the market, it becomes visible to virtually every agent and buyer in the area, creating the kind of transparency that makes competitive markets function efficiently. But as Boero explains, if that cooperative norm breaks down, the American real estate landscape could start looking more like parts of Europe, where opaque, broker-controlled inventories force buyers to rely on personal connections or pay substantial finders' fees just to learn what homes are actually available.
This shift toward exclusivity happens through agreements that promise sellers either privacy or "premium positioning" while giving the listing brokerage control over both sides of the transaction. CoStar's research team has documented a growing percentage of high-end properties that appear first—or sometimes only—within proprietary portals, completely bypassing Realtor.com and local MLS feeds that most buyers rely on. While sellers might appreciate what feels like VIP treatment, this approach fundamentally narrows their potential buyer pool and can actually reduce the competitive bidding that drives final sale prices higher.
The implications extend far beyond luxury markets. When inventory becomes fragmented and harder to find, buyers face increased search anxiety and a much greater risk of overpaying simply because they can't access complete market data. They might tour a home thinking it's fairly priced based on visible comparables, not realizing that similar properties sold recently through exclusive channels for significantly different amounts. Meanwhile, sellers who choose the private route may never discover they could have received a better offer if their property had reached the full market.
Even renters get caught in the crossfire of this fragmentation. When sales data becomes less transparent and harder to aggregate, it becomes much more difficult to gauge neighborhood trends that directly influence future rental prices. The ripple effects of reduced transparency don't stop at the point of sale—they flow through to every aspect of local housing markets.
If this trend toward fragmentation accelerates, the technology landscape could shift dramatically as well. App developers and startups might rush to build pay-to-play search tools that promise access to hidden inventory, or we could see a return to "bring a buyer, get a bounty" compensation models that were common before Zillow democratized property search. Regulators are already paying attention—the Department of Justice has probed MLS rules in recent years, and increasing market opacity could invite much stricter data-sharing mandates from federal agencies.
For real estate professionals, this emerging landscape creates both challenges and opportunities. The smart move involves getting ahead of the fragmentation by expanding beyond traditional listing sources. Successful agents are already telling clients, "Off-market deals are growing—do you want to see everything available, or just what shows up in one app?" They're creating value by actively tapping their full network of agent relationships, monitoring private Facebook groups, and even sending direct-to-seller letters to uncover properties before they hit any public platform.
Buyers should start asking "Is this on the MLS?" before touring any property, while sellers need to carefully weigh the market exposure they sacrifice when they choose to stay private. The math often doesn't work out in favor of exclusivity—reduced competition typically means lower final sale prices, even after accounting for any privacy benefits or marketing prestige.
In a market that's moving toward fragmentation, transparency becomes a genuine competitive advantage. Agents who can provide clients with the most complete picture of available inventory and recent sales will command premium value, while those who rely solely on traditional MLS feeds may find themselves working with incomplete information. The key is recognizing that the old model of centralized, universal listing data may not survive intact, and adapting strategies accordingly while the transition is still in its early stages.
Sources: Brian Boero industry analysis, CoStar research data, MLS market studies, Department of Justice regulatory filings, Compass platform analysis, Realtor.com market reports