Sellers: Understand What’s at Stake by Not Listing on the MLS

The Multiple Listing Service (MLS) is the common database used by real estate pros to list properties for sale. It’s the reason you can easily open a map on Realtor, Zillow, or Redfin and look up that property you just drove past. While percentages might vary a bit by source and year, the vast majority of homes for sale in this country are listed on the MLS. In fact, a recent analysis by Zillow found nearly 97% of sales during the period they studied were listed there. But what about the others?

How Do Homes Not Listed on the MLS Sell?

Off-MLS listings are often called “pocket listings” and are marketed to potential buyers through direct and intentional marketing by brokers. Pocket listings aren’t exactly secret (though it can feel that way) but are marketed via channels like social media or email blasts, rather than relying solely on the MLS to generate views (with help from agents, of course).

There are a few situations where this approach might be the right choice: a family member selling to another family member directly, or a prominent seller (or simply one concerned with privacy) might not want to publicize the sale of their home. In these instances, selling a house “off-market” makes sense. It’s the other reasons that may put sellers at a distinct disadvantage.

What Happens If a Seller Doesn’t Go the MLS Route?

According to Housingwire (via Zillow), sellers who opted out of listing on the MLS may have lost out on more than $1 billion dollars in aggregate over the last two years alone.

This is particularly concerning given that those who stand to lose the most ground are sellers of color. 3/4 of Black and Hispanic sellers reported to Zillow that their agents advised them to sell off-listing—potentially exacerbating already stark income inequalities and limiting the potential for higher sales.

Why Is This Coming Up Now?

In the next few weeks, the National Association of Realtors (NAR) is expected to vote on a potential repeal of its Clear Cooperation Policy (CCP). The CCP, which is currently in effect, requires NAR members to list homes for sale on the MLS within 24 hours of being on the market.

As an aggregator of listings, Zillow has understandably supported the CCP. And while we don’t expect you to care much about the insular squabbles of the real estate world, all sellers—especially those from marginalized groups being pushed by agents to list off-MLS or simply those hoping to make as much money from the sale of their property—should look into the pros and cons and decide for themselves.

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If you’re interested in learning more about the selling process, download our free Seller’s Guide. We share a ton of valuable resources to demystify the selling process and help you along this emotional journey.