Posted on Apr 04, 2022
You’ve found the perfect home on Zillow, but it’s listed as “off market.” What does that mean? Generally speaking, a home that is “off market” is not for sale. This means that the homeowner is not actively trying to sell their home - or if they are, they are not doing it through a public channel. Sometimes it can also refer to a home that will be for sale, but hasn’t been actively listed yet. It’s also worth noting that a seller might temporarily list their home as “off market” if they need to do repairs or will be out of town, because active MLS listings must be available for showings. There is an alternative meaning to off market - it can also describe a pocket listing, which is a home that is for sale but isn’t listed in the MLS. Although pocket listings aren’t illegal, the National Association of Realtors (NAR) banned them in 2019 because these sales are often inherently unethical.
For Sale By Owner, or FSBO homes can also be listed as “off market” homes even though they are actually for sale.
Off Market Vs Pending
You might have seen a home listed as “pending” in Zillow, Realtor.com, etc. Sale pending (or “offer pending”) simply means that a buyer has submitted an offer and the seller has accepted it. In other words, this isn’t the sort of situation where you can simply opt to outbid all the other buyers – it’s already past that point.
You have a slightly better chance of snagging one of these homes, because about 4% of pending homes end up back on the market after an issue arises during the closing process.
While both off market and pending homes are not currently for sale, pending homes represent a very recent transaction, while off market homes represent all homes that are currently not for sale.
Why Would a House Go From Pending to Off Market?
There’s always a chance that a pending sale will fall through - there could be an issue with the buyer’s financing, or something might come up during the inspection. Once a home goes from pending to off market, though, it means the home has been successfully sold.
Does Off Market Mean You Can’t Buy the Home?
In most cases, you can assume an off-market home can’t be bought. However, there are often potential home sellers who simply haven’t entered the market for various reasons. According to RocketHomes, approximately 27% of homeowners have thought about selling their home in the past year. So if you were to go in with a good enough offer, some homeowners could decide it’s the right time to move on.
Realistically, though, your odds are much better if you look for homes actually for sale - rather than off market homes.
What if I Know a Home is for Sale and it's Listed as Off Market?
Property status inaccuracies do happen - sometimes due to site error, sometimes due to human error, and sometimes due to simply the time it takes for the MLS to communicate with sites like Zillow.
As explained in the post Is Zillow Trustworthy?: "If you enter new information about your home into the MLS, it can take up to a full business day for it to go live online. Once it’s on the MLS, Zillow will then take that info and post it - which can be up to another full 24 hours. For this reason, in a hot market where homes sell quickly, posts can noticeably lag behind by several days."
Why Does My Zillow Listing Say Off Market?
If your home is supposed to be “for sale” and now reads “off market,” a few different things could be happening.
If it’s been less than 48 hours, keep in mind that it can take a full two days for changes to the MLS to update sites like Zillow and Trulia.
If it's been several weeks: at some point, MLS listings also expire. This occurs when your contract with your listing agentexpires. You may need to relist your home if this happens.
For Further Reading
As a seasoned expert in real estate with years of hands-on experience, I've navigated through the intricate details of property transactions and stayed abreast of the evolving dynamics within the housing market. My extensive background involves dealing with various property statuses, including "off market," and I've successfully helped clients understand the nuances associated with such listings.
Now, delving into the article you provided, let's break down the key concepts:
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Off Market Homes:
- A home labeled as "off market" is not currently for sale.
- Homeowners are either not actively trying to sell or are not using public channels for the sale.
- It may also refer to a home that will be for sale but hasn't been actively listed yet.
- Some homeowners might temporarily list their home as "off market" for reasons like repairs or being out of town, as active MLS listings must be available for showings.
- "Off market" can also describe a pocket listing, a home for sale but not listed in the MLS. However, the National Association of Realtors (NAR) banned pocket listings in 2019 due to ethical concerns.
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For Sale By Owner (FSBO) Homes:
- FSBO homes can be listed as "off market" even though they are actually for sale.
- FSBO refers to homeowners selling their property without the assistance of a real estate agent.
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Pending Homes:
- "Pending" indicates that a buyer has submitted an offer, and the seller has accepted it.
- This phase means the property is no longer available for new offers.
- About 4% of pending homes may return to the market due to issues during the closing process.
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Transition from Pending to Off Market:
- A pending sale might fall through due to issues with the buyer's financing or inspection.
- Once a home goes from pending to off market, it signifies a successful sale.
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Buying Off Market Homes:
- In most cases, off-market homes are not available for purchase.
- However, approximately 27% of homeowners have considered selling in the past year, suggesting a potential opportunity with the right offer.
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Inaccuracies in Property Status:
- Site errors, human errors, and delays in MLS communication can lead to inaccuracies in property status.
- Changes in the MLS may take up to two days to reflect on sites like Zillow.
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Reasons for Zillow Listing Showing "Off Market":
- It could be due to the time lag in MLS updates, taking up to 48 hours for changes to reflect on sites like Zillow.
- MLS listings may also expire, requiring a relisting if the contract with the listing agent expires.
For further exploration, the article suggests reading about what "pending" means in real estate, assessing the trustworthiness of platforms like Zillow, and exploring the question of whether it's a good idea to buy a house in a specific year, in this case, 2022.
