The Hidden Costs of Selling Off-Market: Why Skipping the MLS Could Cost You Thousands
If someone told you that selling your home off-market could cost you thousands, would you still do it?
That’s exactly what happened to home sellers across the country who chose to sell outside the MLS (Multiple Listing Service)—the main database where real estate agents list homes for sale.
A recent Zillow study found that sellers collectively lost $1 billion in 2023 and 2024 by opting for private sales. On average, homeowners who chose off-market sales walked away with $4,975 less per sale. In higher-priced markets like California, that number skyrocketed to $30,000 per home.
MLS vs. Private Sales: What’s the Difference?
MLS Listings: Maximum Exposure = Maximum Profit
The MLS is the central hub for real estate listings, ensuring your home gets maximum visibility. When listed on the MLS, your home appears on major real estate platforms like Zillow, Realtor.com, and Redfin, reaching a vast pool of buyers and creating competitive demand. This exposure leads to better offers and a higher final sale price.
Private Sales (Off-MLS): Limited Audience = Lower Price
Selling your home off-market is like keeping it in an exclusive club—only a limited group of buyers knows it’s for sale. Some real estate agents may encourage this approach to keep deals within their network, but the downside is clear: fewer buyers mean less competition, and less competition usually means a lower selling price.
Why Do Sellers Choose Off-MLS Sales?
Despite the financial drawbacks, some sellers opt for off-market sales due to:
-
Privacy – They don’t want their home sale to be public.
-
Fewer Showings – They prefer a quick, hassle-free transaction.
While these reasons may seem appealing, the numbers don’t lie. According to Zillow:
-
Nationwide, sellers lost an average of 1.5% ($4,975) on their sale price.
-
In California, the average loss was 3.7%—or $30,075 per home.
-
Every price tier, from starter homes to luxury estates, saw a decrease in sale prices when listed off the MLS.
The Formula is Simple: Less Exposure = Fewer Buyers = Less Money in Your Pocket
But this issue isn’t limited to private listings. Other factors—like poor marketing, incorrect pricing, and limited accessibility—can also lead to financial losses.
What Causes Homes to Sell for Less?
Many homeowners assume their home’s value is fixed, but how you list, market, and negotiate can significantly impact your final sale price. Here are the top factors that could cost you money—and how to avoid them.
1. Poor Marketing & Limited Exposure
If your home isn’t seen, it won’t sell for top dollar. Simply listing on the MLS is the bare minimum. A strong marketing strategy includes professional photography, video tours, social media promotion, and open houses to attract the highest number of buyers.
Questions to Ask Your Realtor:
-
Where will my home be marketed?
-
What makes your marketing strategy different from other top Realtors?
-
How will you ensure my property stands out on Zillow and the MLS?
-
Can you provide examples of past marketing success?
-
Will you conduct open houses and virtual tours?
2. Overpricing from the Start
Setting the right price is crucial. Overpriced homes sit on the market too long, becoming stale and requiring price cuts. This can make buyers skeptical and lead to lower offers.
Questions to Ask Your Realtor:
-
How do you determine the best listing price?
-
What’s the average sale-to-list price ratio in my area?
-
What pricing strategies do you use to attract multiple offers?
3. Lack of Strategic Negotiation
Many sellers focus solely on price, but contract terms matter just as much. Skilled negotiation can secure better contingencies, closing timelines, and buyer commitments.
Questions to Ask Your Realtor:
-
How do you handle multiple-offer situations?
-
What negotiation strategies do you use to maximize my profit?
-
How do you ensure buyers are financially qualified?
4. Making Your Home Hard to Show
If buyers can’t easily see your home, they won’t fight for it. Limited access, restricted showings, or a lack of urgency can lead to missed opportunities and lower offers.
Questions to Ask Your Realtor:
-
What’s your plan for maximizing showings?
-
Will you offer flexible viewing options, including virtual tours?
-
How do you create urgency when first listing a home?
The Bottom Line: Don’t Leave Money on the Table
The numbers are clear: Home sellers lost $1 billion by skipping the MLS. But even if you list on the MLS, poor marketing, incorrect pricing, and restricted showings can still cost you tens of thousands of dollars.
If you’re thinking about selling, ask the right questions, demand transparency, and work with a real estate agent who prioritizes your financial success.
Your home is one of your biggest investments—make sure you get every dollar it’s worth.
