Recent research by Zillow has unveiled a significant financial impact for homeowners who choose to sell their properties off the Multiple Listing Service (MLS). The study, analyzing home sales from 2023 and 2024, found that properties sold outside the MLS—often referred to as “pocket listings”—typically sold for $4,975 less than those listed on the MLS, representing a median loss of 1.5% nationwide. In certain regions, such as California, this loss exceeded $30,000 per sale.
Pocket listings are properties marketed privately, shared exclusively within a select network of agents or buyers, bypassing the broader exposure provided by the MLS. While some sellers opt for this approach to maintain privacy or test the market, the limited visibility often results in reduced competition and, consequently, lower sale prices.
Beyond the financial drawbacks for sellers, the prevalence of private listing networks (PLNs) poses challenges to market transparency and fairness. Jeremy Wacksman of Zillow emphasizes that PLNs can harm buyers, sellers, and agents by restricting access to comprehensive market information, thereby undermining the principles of fair housing.
The National Association of Realtors (NAR) addressed this issue by implementing the Clear Cooperation Policy in 2020, mandating that agents list properties on the MLS within one business day of public marketing. This policy aims to enhance market transparency and ensure equal access to property information. However, it has faced opposition from some industry professionals who argue it limits marketing flexibility for sellers.
For homeowners considering the sale of their property, these findings underscore the importance of leveraging the MLS to maximize exposure and potential sale price. While pocket listings may offer a degree of discretion, the associated financial and ethical implications suggest that public MLS listings are more advantageous for achieving optimal outcomes in today’s real estate market.