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The $1 Billion Mistake: How Agents Can Help Sellers Avoid Losing Thousands

Writer: SkylineSkyline
2 hours ago2 min read

As a real estate agent, your primary goal is to provide the best value and service to your clients.

But recent Zillow research reveals a costly mistake many sellers—and even agents—are inadvertently making: opting for off-MLS (Multiple Listing Service) transactions. Over the past two years alone, sellers who bypassed MLS exposure have collectively lost over $1 billion in potential earnings.


The High Cost of Off-MLS Transactions

Homes sold off the MLS have consistently sold for nearly $5,000 less on average compared to MLS-listed homes. In high-priced markets, the losses are even more staggering. California sellers, for instance, typically lost over $30,000 per transaction.

Here's how median losses break down by price tier:

  • Bottom tier: 3.1%

  • Lower tier: 2.7%

  • Middle tier: 1.6%

  • Upper tier: 0.7%

  • Luxury tier: 0.4%

The takeaway for agents? Lower-priced homes suffer disproportionately higher losses, making MLS exposure even more critical for sellers who need every dollar from their home sale.


Why MLS Matters to Your Clients

Listing a property on the MLS significantly expands the property's visibility, reaching the broadest audience of potential buyers. Off-MLS transactions, including “pocket listings,” restrict this visibility, limiting competition and ultimately leading to lower sale prices.

Zillow found that buyers overwhelmingly prefer transparency, with 91% believing they should have unrestricted, free access to all available listings. Limiting visibility doesn’t just hurt sellers—it frustrates potential buyers who want and expect to see all available options.


Advising Your Sellers

Surprisingly, 63% of recent home sellers reported that their agent recommended private listing networks first, often without fully explaining the financial drawbacks. As trusted advisors, agents must educate sellers about the financial consequences of choosing limited visibility.

When advising your clients, emphasize these key points:

  • MLS listings provide maximum exposure and foster competitive offers.

  • Off-MLS transactions significantly limit visibility and potential profit.

  • Transparency and broad market exposure are critical, especially in today's tight inventory market.



Stand Out as a Trusted Expert

Agents who clearly communicate the benefits of MLS listings stand out as advocates for their clients' best interests. Presenting data-driven insights builds trust, demonstrates professionalism, and positions you as a knowledgeable expert who helps sellers avoid costly mistakes.


Your Bottom Line

The evidence is clear: advocating for MLS listings isn't just beneficial for sellers—it's smart business practice for agents looking to build lasting trust and generate referrals. By ensuring your clients understand the true financial impact of off-MLS transactions, you help them make informed, profitable decisions—and reinforce your indispensable value as their real estate professional.


Do you think the MLS is the best place to advertise properties for sale? Let us know in the comments or share with a colleague in an upcoming CE Class!

References

Zillow. (2025, March 7). Off-MLS home sellers left more than $1 billion on the table the past two years. Zillow Research.

 
 
 
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