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New CT law protects house sellers who want listings kept off Zillow, Realtor.com.A home in the Silvermine section of Norwalk sold for more than a $1 million above the asking price after nearly 100 people showed up look it over and 35 put in formal offers.Real estate executive Chris Halstead said he believes that seller would have left plenty of money on the table if they had gone with their first instinct of a private listing.Advertisement Article continues below this ad Now, a new law requires all Connecticut agents to disclose that possibility if a seller chooses to sell a property in an off-market transaction.Ned Lamont signed legislation last week that requires agents to provide a consent form to sellers who want to opt out of making their listings available on SmartMLS, Greenwich Multiple Listing Service, which in turn are posted to public platforms like Zillow and Realtor.com.Taking effect in October, the law is meant to protect sellers who might not get as high of a price due to limiting the ability of other bidders to jump in who are not aware of the opportunity; as well as buyers, by expanding purchase opportunities for all.Want more Norwalk Hour?The bill had been passed unanimously by the Connecticut General Assembly's Insurance and Real Estate Committee, chaired by Sen.Jorge Cabrera, D-Hamden, and Rep.Kerry Wood, D-Rocky Hill.Similar legislation advanced in the New York State Assembly, with Gov.Kathy Hochul having yet to sign it as of Wednesday morning.Advertisement Article continues below this ad "The market in Fairfield County right now being so tight on inventory — there are a lot of agents with buyers [where] it's easy to arrange a deal because the demand exists," said Halstead, chief strategy officer for Brown Harris Stevens and executive sales director for Connecticut."There are definitely private listings that are happening, and there are brokerages who are in support of it." Halstead believes that decision can backfire, citing the example in Norwalk's Silvermine neighborhood where a Brown Harris Stevens agent convinced a seller to go public with the listing rather than take a private offer."We had 35 offers and it went for almost $1 million over the asking price," Halstead said."There will always be a reason for someone to have a need to sell something privately.But I think that should certainly be the exception — based on an actual, need-based reason." Connecticut Realtors, which has nearly 18,000 members across real estate brokerages and related industries, also submitted testimony in support of the bill, saying "limited marketing may in limited circumstances serve legitimate seller or landlord needs, such as privacy or security concerns" in its words.Advertisement Article continues below this ad While real estate listings are increasing in some parts of the country, Connecticut had about 650 fewer new listings through the first five months of 2026 compared to the start of 2025, according to Berkshire Hathaway HomeServices New England Properties.Buyers are paying 2.1% above asking prices on average to date this year in their eagerness to find a place, and 3.6% above asking for transactions completed in May.Proponents of "pocket listings" say they are valued by people who do not want their moving plans made public, ranging from couples undergoing divorces to celebrities.For those who like the limelight, a boffo real estate listing can help the cause, of course.Last month, Kathie Lee Gifford went public with plans to sell her Greenwich mansion, which became Connecticut's priciest listing at $100 million and garnered the former "Live!with Regis and Kathie Lee" host a fresh spate of headlines nationally.Advertisement Article continues below this ad And sometimes private sales occur as a result of opportunistic buyers keeping an eye out for notices of default, tax delinquency notices or lis pendens filings that identify property owners by name who are in financial straits.Those buyers then reach out with offers for speedy transactions that can put cash in their pockets immediately.Under that circumstance, a listing would never make it into a multiple listing service for consideration by a larger set of buyers who might be willing to make better offers.Compass CEO Robert Reffkin cited the Connecticut legislation in early May during a conference call with investment analysts, noting that the state opted to allow private listings with the extra disclosure rules in place."Some states are saying sellers have the legal right to [a] private listing and to market however they want," Reffkin said."Sellers, with their agents, should be able to decide how they market their home — in any way they want, not third-party portals and third-party platforms like an MLS.The seller hired the agent and the broker firm — the seller didn't hire MLS." Zillow, which makes SmartMLS and Greenwich MLS listings freely available on its websites, sent a lobbyist to testify in support of the bill during a March hearing in Hartford.Earlier this year, Zillow prevailed in litigation brought by Compass, who challenged Zillow implementing a ban on listings that are not posted to its website within 24 hours of being made available on a private basis.Advertisement Article continues below this ad "There's a growing trend within parts of the real estate industry to systematically hide available inventory, only providing access to a select group of buyers or brokers within private listing networks," said Torrey Fishman, a government relations executive for Zillow, speaking in March in Hartford."This practice moves us backwards towards a closed, opaque system where access to housing information is no longer equal." "When listings are shared only within exclusive or hidden networks, buyers who lack access to those networks are excluded, raising serious fair housing concerns," Fishman continued."That exclusion increases the risk of steering and discriminatory outcomes, problems the housing industry has worked for decades to address." Includes prior reporting by Andrew DaRosa.Advertisement Article continues below this ad