When it comes to selling a home, one of the biggest decisions a seller faces is whether to list their property on the Multiple Listing Service (MLS) or explore off-market options. While there may be some specific reasons to keep a sale private, the choice to bypass the MLS can have a significant impact on a seller’s bottom line. Let’s take a look at why this decision matters and what the data tells us.
Why Would a Seller Choose Not to List on the MLS?
In certain situations, privacy concerns may take priority over maximizing the sale price. For example, a business owner preparing to sell their company might avoid listing their home publicly to prevent speculation among employees. Likewise, high-profile individuals, such as celebrities or executives, may prefer an off-market transaction for security reasons. However, even in these cases, many still opt for the MLS because of the exposure and competitive pricing it provides.
The Risks of Selling Off-Market
Research shows that homes listed on the MLS consistently sell for more than those sold privately. A study by Bright MLS found that between 2019 and early 2023, MLS-listed properties sold for 17.5% more than comparable homes sold off-market. Additionally, a separate study by Zillow revealed that sellers collectively lost over $1 billion by choosing private sales.
One of the biggest downsides of selling off-market is the lack of exposure. The buyer willing to pay the most may never even know the property is available. In fact, some MLS services require sellers who opt out to sign a waiver acknowledging that they understand they could be leaving money on the table. Despite this, some companies continue to promote private, non-MLS listing groups—effectively cutting out 80% or more of potential buyers and their agents.
If your goal is to get the highest possible price and best terms for your home, listing on the MLS is the best way to ensure maximum market visibility and competition among buyers. If you have questions about the best strategy for your specific situation, I’d be happy to help.
