When it comes to selling a home, every dollar counts. Yet, over the past two years, home sellers who chose to sell off the MLS (Multiple Listing Service) collectively left more than $1 billion on the table, according to a recent Zillow study.
The research, which analyzed home sales from 2023 and 2024, found that homes sold off the MLS typically fetched $4,975 less than those listed, amounting to a median loss of 1.5% nationwide. This raises an important question for sellers: Is skipping the MLS really worth it?
The Impact of Off-MLS Sales on Home Prices
While selling off-market might seem like a convenient option—offering privacy and avoiding the hassle of showings—the numbers suggest it comes at a steep cost. Here’s what the data reveals about the impact of off-MLS sales:
Homes in all price tiers typically sold for less when sold off the MLS, with the most severe price impacts on lower-priced homes.
44 out of 46 states in the study experienced financial losses from off-MLS sales.
33 states saw median losses exceeding 1%, with 10 states losing over 2% on off-market sales.
Urban homes saw the biggest hit, with a median loss of 2% off-MLS, compared to 1.5% for suburban homes and 0.9% for rural homes.
The Hardest-Hit States
Certain states suffered more than others when homes were sold off the MLS. California led the nation, with a staggering 3.7% median loss per off-MLS sale—equating to a loss of $30,075 per home. Other high-impact states included:
New York: -3.7% or $13,749
Massachusetts: -3.4% or $20,171
These numbers demonstrate how much sellers stand to lose by avoiding the MLS, especially in high-cost markets.
Why Does the MLS Matter?
The MLS is the most powerful tool in a seller’s arsenal. Here’s why:
More Exposure, More Buyers – Listing on the MLS ensures maximum visibility, reaching a wider pool of potential buyers and increasing competition for your home.
Higher Selling Prices – Competitive bidding drives up prices, helping sellers get the most value from their home sale.
Market Transparency – The MLS provides clear market data, ensuring fair pricing and preventing underselling.
Should You Ever Consider Selling Off-MLS?
There are a few situations where selling off-market might make sense, such as:
Selling to a trusted buyer (such as a friend, family member, or neighbor).
Highly unique properties that may not benefit from a traditional MLS listing.
Extreme privacy concerns where a seller wants to avoid public exposure.
However, in most cases, the data shows that listing on the MLS leads to better financial outcomes for sellers.
Bottom Line
Selling your home off-MLS might seem like a simple, fast solution, but it often comes at a cost—one that many sellers don’t realize until it’s too late. With a potential 1.5% to 3.7% loss, depending on location, sellers should carefully weigh their options before skipping the MLS.
If you’re considering selling your home, working with a knowledgeable real estate professional who can market your home effectively on the MLS could be the key to maximizing your profit.
If you have any real estate questions or are looking to buy or sell your home in Heber City, Midway, Park City, Utah or Salt Lake Counties, please reach out to me with any questions at (801) 885-2558 or by email at brandonrwood19@gmail.com.