Unveiling the Hidden Home Sales Boom in Texas & Florida's Real Estate Markets

While housing inventory is increasing across the U.S., not all properties make it to the public market. Off-market real estate transactions, where properties are sold without being listed on the Multiple Listing Service (MLS), are a significant part of the housing market. These transactions are often conducted privately through direct negotiations between buyers and sellers or with the assistance of specialized agents.

The Scope of Off-Market Sales

Off-market sales are more common than one might think. Data from BatchService, a property intelligence and technology company, reveals that approximately 1.2 million homes in the U.S. have been sold off-market this year. In states like Texas, Florida, and Georgia, thousands of properties change hands without ever being publicly advertised.

Reasons Sellers Choose Off-Market Transactions

Several factors drive sellers to opt for off-market sales. Privacy concerns are a major reason, as some sellers prefer to keep their transactions private to avoid public attention, particularly if the property belongs to a high-profile individual. Market testing is another reason, with off-market listings allowing sellers to gauge interest and pricing without committing to a full public listing. Speed is often a factor, as homeowners in need of a quick sale due to financial issues, divorce, or other personal reasons often find off-market transactions faster and less complicated. Additionally, exclusivity plays a role, as keeping a property off-market can create a sense of exclusivity, attracting serious buyers willing to pay a premium.

Who Typically Sells Off-Market?

Off-market sellers often have specific circumstances that make a traditional listing less appealing. According to Ben Riehle, managing partner at FFCM, a real estate investment firm in Arizona, these sellers might include divorced couples, owners of homes in disrepair, or individuals looking to avoid commission fees by dealing directly with investors.

The Prevalence of Off-Market Sales in High-Value Markets

In some regions, particularly in high-value markets like Austin, Texas, off-market transactions are surprisingly common. Real estate agent Austin Stowell notes that a significant portion of high-end properties in Austin—around 40% of homes valued over $2 million—are sold off the MLS. This trend highlights the importance of off-market data in understanding the full scope of the real estate market.