Pre-marketing could boost housing supply by over 10%: Redfin
Some markets could see inventory go up if sellers have "the option to gauge interest in their homes before listing," according to a Redfin analysis.
Key points:
- Shortly after inking an exclusive listings deal with Compass, Redfin has published data suggesting inventory could jump in areas that embrace pre-marketing.
- Reluctant sellers could feel more confident about listing if they've had an opportunity to test their price before marketing their home broadly, the report indicates.
- Analyses by some other companies (including Redfin competitors) have concluded that pre-marketing has little to no benefit for sellers.
Pre-marketing could play a pivotal role in unlocking housing inventory in crunched markets, according to a recent Redfin analysis.
With homebuyers outnumbering sellers in many competitive areas, prospective sellers could be at risk of losing money if they pick a listing price that's too high or too low, according to Redfin's report, which was published two weeks after parent company Rocket announced a Redfin-Compass exclusive listings partnership.
By enabling sellers to test buyer interest before officially listing, the March 13 report suggests, participating markets could see 6% gains in inventory — or more — at a time when the U.S. has millions fewer homes than it needs.
Price-testing could boost seller confidence
The big questions involved with listing a home — such as how much a home is worth and how long it'll take to find a committed buyer — make many homeowners "reluctant to sell," Redfin Senior Economist Asad Khan said.
By testing pricing strategies, sellers can zero in on their home's worth and lower the risk of price cuts later, the report states. When priced correctly, a home is less likely to rack up days on market, as overpricing — even by as little as 10% — can result in a listing lingering on the market for over a month, according to Redfin economists. About 1 in 3 sellers either underprice or overprice their home, the report notes.
Other costs — including those related to agent commissions, repairs, home staging and more — can contribute to a seller's hesitation to take the plunge. The benefits of price testing and reducing days on market risks are worth about 1.2-2.4% of a home's value, the report estimates.
"Offering sellers the option to gauge interest in their homes before listing gives them a clearer picture of their property's value," Khan said. "When more homeowners feel confident listing, buyers benefit from more homes to choose from."
A Redfin model based on the report's estimates suggests annual listings could increase by 6-12% in areas where sellers are permitted to deploy these strategies. Though the National Association of Realtors codified a delayed marketing addendum to its Clear Cooperation Policy last spring, some MLSs remain firmly against pre-marketing strategies.
Conflicting data muddies the waters
Redfin's report echoes Compass' position on "Private Exclusive" and "Coming Soon" listings, which the brokerage has said lead to faster offers and higher sale prices.
But other analyses have raised doubts about the benefits of pre-marketing.
An April 2025 Bright MLS report suggested listings that start as office exclusives spend weeks longer on market compared to homes that debut on the MLS. Another study analyzing San Francisco County listing trends from the San Francisco Association of Realtors (SFAR) and RealReports found that homes listed on the MLS had an 18.6% price advantage over off-MLS listings.
Zillow has published its own research pointing to thousands of dollars in losses among off-MLS sellers and raised concerns that racial disparities in housing access may result from the use of private listing networks.
The elephant in the room?
Redfin's report surfaced just two weeks after Rocket Companies — which acquired Redfin last March — announced a "first-of-its-kind" partnership with Compass. The three-year deal enables Compass to display "Coming Soon" listings on Redfin immediately, with "Private Exclusives" coming later.
The agreement signaled a pivot for Redfin, which took a strong stance against private listings under former CEO Glenn Kelman. Redfin suggested last May that it would, as Zillow did, implement a ban on such listings, though Redfin's ban never came to pass. Compass meanwhile sued Zillow over its ban last June.
But even Zillow has appeared to soften its tone. The leading search portal announced today that it would allow some pre-market listings to be displayed on its site, in accordance with local MLS policies.