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 new Zillow study found that sellers lost $1 billion in 2023 and 2024 by opting for private sales. On average, those homeowners walked away with $4,975 less per sale—and in higher-priced markets like California, that number jumped to $30,000 per home.
Before we go much further, let’s break down the difference between listing a home on the MLS vs. private sales:
- MLS Listings: Think of the MLS as the main stage—where homes get maximum visibility. When you list on the MLS, your home appears on Zillow, Realtor.com, Redfin, and all the major real estate sites. Every buyer and agent can see it, leading to more competition and better offers.
- Private Sales (Off-MLS): This is like selling your home in a small, exclusive club—where only a limited group of buyers knows it’s for sale. Some agents may encourage sellers to go this route, keeping the deal within their network. But with fewer buyers seeing the home, there’s less competition—and that usually means a lower sale price.
So why does this happen? More importantly, how can you protect your biggest financial asset and maximize your home’s value?
Let’s break down the hidden pitfalls that cause sellers to lose money—and what you should ask your real estate agent to make sure it doesn’t happen to you.
Why Do Some Sellers Skip the MLS?
Despite the financial risks, some homeowners choose off-MLS sales, also known as pocket listings. The most common reasons include:
- Privacy – Some sellers don’t want their sale to be public.
- Fewer Showings – Aiming for a quick, low-hassle transaction.
And while the decision is always up to the seller, here’s what the data shows: When fewer buyers see your home, there’s less competition—leading to a lower final sale price.
According to Zillow’s analysis:
- 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 sales prices when listing off the MLS.
To put it simply: less exposure = fewer buyers = less money in your pocket.
But this doesn’t just apply to private listings. Other factors—like poor marketing, bad pricing strategies, and limited access for buyers—can also eat into your final sale price.
What Causes Homes to Sell for Less?
Many sellers assume their home’s value is set in stone, but the truth is how you list, market, and negotiate makes a huge impact. Here are the biggest factors that can cause you to leave money on the table—and how to avoid them.
1. Poor Marketing & Limited Exposure
Think about it: if your home isn’t seen, it won’t sell for top dollar. One of the biggest mistakes sellers make is trusting that getting the property on the MLS (and, in turn, Zillow, Realtor.com, etc.) is enough.
In reality, that’s the bare minimum.
What to Ask Your Realtor:
- “Where will my home be marketed?”
- “What makes your marketing different from the top three Realtors in the area?”
- “How will you ensure my property stands out on the MLS and Zillow?”
- “Can you show me examples of your professional photography and videography?”
- “Will you do open houses?”
2. Overpricing from the Start
Overpricing can be just as dangerous as underpricing. Homes that sit on the market for too long become stale, leading to price drops and buyer skepticism.
What 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 recommend to attract multiple offers?”
3. Lack of Strategic Negotiation
Many sellers focus only on the sale price—but terms matter just as much. An experienced agent knows how to negotiate contingencies and push for better terms beyond price.
What 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 serious and financially qualified?”
4. Making Your Home Hard to Show
Buyers won’t fight for a home they can’t see. If your agent restricts access, limits showings, or fails to create urgency, you could lose serious money.
What 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 your home on the MLS, factors like poor marketing, bad pricing, and limited access can still cost you tens of thousands.
If you’re thinking about selling, ask the right questions, demand transparency, and work with an agent who prioritizes your financial success.
Your home is one of your biggest investments—make sure you get every dollar it’s worth.
