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Overview

This week, Rob and Greg are joined by Professor Darren Hayunga of the University of Georgia to discuss his research on pocket listings and private sales. Using 20 years of Dallas-Fort Worth MLS data, Darren explains why his findings challenge conventional wisdom about off-market transactions, how Clear Cooperation Policy impacted pocket sales, and why sellers may not be sacrificing value by avoiding the open market. The conversation explores market efficiency, buyer and seller behavior, luxury listings, and the broader implications for the ongoing industry debate around private listing networks and consumer choice.

Key Takeaways

• Professor Darren Hayunga's study found that pocket sales in Dallas-Fort Worth generated an average premium of roughly 1.7%, with luxury properties showing significantly higher premiums.
• The research suggests sellers may benefit from avoiding what Darren calls the "negotiation tax" associated with traditional MLS listing strategies.
• Clear Cooperation Policy largely eliminated the pricing advantage of pocket sales, but did not eliminate their use.
• Pocket listings became more common over time, growing substantially after the early 2010s despite industry efforts to curb them.
• The discussion highlights the challenges of measuring off-market transactions and the importance of comparing truly comparable properties when conducting housing research.
• Rob and Greg debate whether the continued popularity of private sales reflects consumer preference, brokerage incentives, or broader market efficiencies.

Links

Contact Professor Hayunga

Pocket Sales in the Housing Market: Selection, Outcomes and Policy

Connect with Rob and Greg

Rob's Website

Greg's Website

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