If you knew that selling your home off-market could cost you thousands of dollars, would you still do it?

Many homeowners across the country who bypassed the MLS (Multiple Listing Service) have unknowingly left significant money on the table. A recent Zillow study revealed that sellers collectively lost $1 billion in 2023 and 2024 by opting for private sales. On average, these sellers walked away with nearly $5,000 less per transaction. In high-priced areas like California, the losses were even steeper—up to $30,000 per home.

Let’s explore why this happens and what you can do to ensure you get top dollar for your home.

MLS vs. Private Sales: What’s the Difference?

Understanding the key distinctions between MLS listings and off-market sales is crucial for making an informed decision.

MLS Listings: Think of the MLS as the main hub for home sales. Properties listed here gain maximum exposure, appearing on major real estate platforms like Zillow, Realtor.com, and Redfin. This visibility attracts more buyers and increases competition, often leading to stronger offers.

Private (Off-Market) Sales: Selling off-market is like offering your home to an exclusive club—only a select few buyers know it’s available. Some agents promote this method to keep deals within their network, but with fewer potential buyers, competition decreases, typically leading to a lower sale price.

Why Do Some Sellers Choose Off-Market Sales?

Despite the financial downsides, some homeowners still opt to sell privately. The most common reasons include:

• Privacy: They prefer not to have their sale widely known.
• Convenience: They want to minimize showings and expedite the process.

While these reasons may seem valid, data consistently shows that fewer buyers mean less competition—ultimately reducing the final sale price.

The Financial Impact of Selling Off-Market

According to Zillow’s findings:

• Nationwide, sellers lost an average of 1.5% (around $4,975) per sale.
• In California, the losses were even greater—3.7% or roughly $30,075 per home.
• Homes in all price ranges, from starter houses to luxury estates, saw lower final prices when sold off the MLS.

The bottom line? Less exposure = fewer buyers = lower offers.

But it’s not just off-market sales that can impact your bottom line. Other factors—such as poor marketing, incorrect pricing strategies, and limited buyer access—can also lead to a lower selling price.

What Causes Homes to Sell for Less?

A home’s value isn’t just about its location or condition. How it’s marketed and positioned in the market plays a significant role. Here are the biggest mistakes that can cost sellers thousands and how to avoid them.

1. Insufficient Marketing & Limited Exposure

If buyers don’t see your home, they won’t compete for it. Many sellers assume that simply listing on the MLS is enough—but in reality, that’s just the starting point.

Questions to Ask Your Realtor:

• Where will my home be marketed beyond the MLS?
• How does your marketing strategy compare to top agents in the area?
• Can you show me examples of professional photography and videography you’ve used?
• Do you conduct open houses or virtual tours?

2. Overpricing from the Start

Setting the right price is crucial. Overpriced homes tend to linger on the market, leading to price reductions and making buyers skeptical.

Questions to Ask Your Realtor:

• How do you determine the best listing price?
• What’s the average sale-to-list price ratio in this area?
• What pricing strategies can attract multiple offers?

3. Weak Negotiation Strategies

Price is just one part of the deal—terms also matter. A skilled negotiator can secure better contingencies, timelines, and financial terms beyond just the sale price.

Questions to Ask Your Realtor:

• How do you handle multiple-offer situations?
• What negotiation tactics do you use to maximize my profit?
• How do you ensure buyers are serious and financially qualified?

4. Restricting Buyer Access

If buyers can’t easily view your home, they won’t compete for it. Limited showings or lack of urgency can reduce interest and final offers.

Questions to Ask Your Realtor:

• What’s your strategy for maximizing showings?
• Do you offer flexible viewing options, including virtual tours?
• How do you create urgency when launching the listing?

Maximize Your Home’s Value—Don’t Settle for Less

The numbers don’t lie: Sellers who skipped the MLS lost an estimated $1 billion in potential earnings. Even if you list on the MLS, poor marketing, improper pricing, and restricted showings can still cost you thousands.

Before selling your home, ask the right questions, demand transparency, and work with a professional who prioritizes your financial success. Your home is likely one of your biggest investments—make sure you get every dollar it’s worth.