Is Selling Off-Market Worth the Risk? Here's What it Could Cost You

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 countless home sellers nationwide who chose to sell outside the MLS (Multiple Listing Service), the main database where real estate agents market homes.

A recent Zillow study found that in 2023 and 2024, sellers collectively lost a staggering $1 billion by opting for private sales. On average, those homeowners walked away with nearly $5,000 less per sale. In higher-priced areas like California, that number soared to $30,000 per home.

Before we dive deeper, let’s clarify the difference between an MLS listing and a private sale:

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

MLS Listings: Consider the MLS the main stage of real estate. Homes listed here receive maximum exposure, appearing on top sites like Zillow, Realtor.com, and Redfin. This visibility attracts more buyers, fosters competition, and ultimately leads to higher sale prices.

Private Sales (Off-MLS): Think of this as a private club where only a select few buyers know a home is for sale. Some agents push this approach within their network, limiting exposure. But fewer buyers mean less competition—and in most cases, a lower final sale price.

So, why do some sellers still choose this route? More importantly, how can you protect your investment and maximize your home’s value? Let’s break it down.

Why Do Some Sellers Skip the MLS?

Despite the financial risk, some homeowners opt for off-market sales, also known as pocket listings. The most common reasons include:

• Privacy – Some sellers prefer to keep their sale discreet.

• Fewer Showings – They want a quick, low-hassle transaction with minimal disruptions.

While the choice is ultimately the seller’s, the data is clear: fewer buyers seeing your home means less competition, which translates to lower offers.

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 range, from starter homes to luxury properties, experienced a dip in sale prices when homes were listed off the MLS.

Less Exposure = Fewer Buyers = Less Money in Your Pocket

But this issue isn’t exclusive to private sales. Other mistakes—such as poor marketing, inaccurate pricing, and limited buyer access—can also slash your home’s final sale price. Here’s how to avoid those pitfalls.

What Causes Homes to Sell for Less?

Many sellers assume their home’s value is fixed, but the reality is that how you list, market, and negotiate plays a huge role. These common mistakes can cost you thousands—and here’s how to avoid them.

1. Poor Marketing & Limited Exposure

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

What 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?

• What makes my listing stand out on Zillow and Realtor.com?

• Can you provide examples of professional photography and videography?

• Will you host open houses to increase exposure?

2. Overpricing from the Start

Setting the right price is crucial. Overpricing can lead to your home sitting on the market too long, which causes buyer skepticism and price reductions.

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 strategy will attract multiple offers?

3. Lack of Strategic Negotiation

Many sellers focus solely on the sale price, but other terms—like contingencies and closing timelines—matter just as much. A skilled negotiator can significantly impact your final profit.

What 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. Making Your Home Hard to Show

Buyers won’t compete for a home they can’t see. If an agent restricts showings or doesn’t create urgency, you may be leaving serious money on the table.

What to Ask Your Realtor:

• What’s your plan to maximize buyer showings?

• Will you offer flexible viewing options, including virtual tours?

• How do you generate urgency when listing a home?

The Bottom Line: Don’t Leave Money on the Table

The numbers speak for themselves: sellers who skipped the MLS lost $1 billion. But even if you list on the MLS, poor marketing, bad pricing, and restricted access can still cost you thousands.

If you’re considering selling, be proactive. 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’re getting every dollar it’s worth.