Would you continue with selling your home in San Diego off-market or not listing it in the MLS (the main database where real estate agents list homes for sale) after learning it could result in losing thousands of dollars?
According to a new Zillow study, sellers lost approximately $1 billion in 2023 and 2024 by choosing private sales or by selling their home off-market.
On average, those homeowners missed $4,975 less per sale, and in California or other high-priced markets, that number was a whopping $30,000 per home.
Before we go more in-depth, let’s break down the difference between listing a home on the MLS vs. private sales or pocket listings:
- MLS Listings: Think of the MLS as the main center stage—where homes get maximum visibility. When you list your home on the MLS, your home gets a wider reach, it appears on Zillow, Realtor.com, Redfin, and all the major real estate sites that you usually Google. 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. This is also known as a off-market deal or what’s commonly referred to as a pocket listing. Some agents may encourage sellers to go this route, keeping the deal within their network and with a more limited reach. With fewer potential buyers seeing the home, there’s less likely competition and offers to choose from – which usually means a lower sales price.
So why does this happen? More importantly, how can you protect one your biggest financial assets and maximize your home’s value at the same time?
Let’s break down the hidden pitfalls that cause sellers to lose money—and what you should ask your real estate agent or team to make sure it doesn’t happen to you.
Why Do Some Sellers Skip the MLS and go to the Off-Market Pocket Listing Route?
Despite the financial risks, some homeowners choose off-MLS sales/ pocket listing options. 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 latest data shows: When fewer buyers see your home, there’s less competition to consider compared to when you’re isting it in the MLS, partially leading to a lower final sale price.
Here’s what we know based on the data from Zillow:
- In a nationwide scale, home sellers lost an average of 1.5% ($4,975) on their sale price.
- In California alone, the average loss of home sellers was approximately 3.7%—or $30,075 per home.
- In every price tier, from starter homes to luxury real estate, saw a decrease in sales prices when listing off the MLS.
To sum things up sometimes it means less exposure = fewer buyers = less money in your pocket.
But this doesn’t just apply to pocket 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?
It’s a common misconception that when selling your home, the value is already set in stone, but in reality, it’s usually how you list, market, and negotiate that makes a huge impact. Here are some of the biggest factors to consider 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 marketed correctly and has limited exposure, it won’t sell for top dollar. One of the biggest mistakes home sellers are making is trusting that after getting the property on the MLS (and, in turn, Zillow, Realtor.com, etc.) would be enough.
In reality, that’s just 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. They may think that something is wrong with the home since it is still on the market.
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 and Open Houses, 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 videos or virtual tours?”
- “How do you create urgency when first listing a home?”
The Bottom Line: Don’t Leave Money on the Table
To summarize it all up, the data shows that home sellers lost approximately $1 billion when they avoided using the MLS or just listed their homes off-market as a pocket listing.
Even though the MLS is powerful tool, do take note though that listing your home here does not fully guarantee financial success and because different factors still come in to play like the agent that you choose, inadequate marketing strategies, incorrect pricing and restricted property exposure.
When selling your home you should always ask important questions while demanding full transparency from your chosen real estate agent. Make sure that the team that you choose have the same financial goals as you in the long run and that you see eye to eye. Remember, your home is one of your biggest investments do make sure that you get most bang for your buck.