In the past two years, home sellers who avoided the Multiple Listing Service (MLS) left over $1 billion on the table.
According to new research from Zillow, choosing a private listing network over the MLS meant the typical seller pocketed $4,975 less than they could have. And in high-priced markets like California, that number jumped to a $30,000 loss per home sold.
The Cost of Off-MLS Sales
Zillow’s study, which analyzed transactions from 2023 and 2024, showed that pocket listings (homes sold off the MLS) consistently sold for less—a median loss of 1.5% nationwide. This affected sellers in 44 out of 46 states analyzed, with sellers in 33 states experiencing median losses higher than 1%.
Some of the hardest-hit markets include:
- California: -3.7% ($30,075 loss)
- New York: -3.7% ($13,749 loss)
- Massachusetts: -3.4% ($20,171 loss)
The study also found that homes in all price tiers sold for less when sold off the MLS:
- Bottom tier (lowest 5% of Zestimates): -3.1%
- Lower tier (5th-35th percentile of Zestimates): -2.7%
- Middle tier (35th-65th percentile of Zestimates): -1.6%
- Upper tier (65th-95th percentile of Zestimates): -0.7%
- Luxury tier (highest 5% of Zestimates): -0.4%
The Ongoing Clear Cooperation Debate
So why do sellers still take this route? Zillow states it’s because some brokerages steer sellers toward listing on private networks first without fully explaining what it means for the homeowner. In a Zillow Group blog, Zillow CEO Jeremy Wacksman wrote:
“Make no mistake, this practice is designed to benefit a participating brokerage’s own bottom line as an attempt to ‘double dip’ on commissions from both sides of the transaction within their brokerage. And it comes at the expense of the seller, who is parting with what is often the biggest financial investment of their lifetime and not reaping the full benefit.”
Wacksman is a strong proponent of the Clear Cooperation policy, which mandates that listings be shared on the MLS within 24 hours of public marketing. He believes this policy will help ensure sellers get the full value of their homes and prevent brokers from keeping deals within their own networks.
However, the ongoing debate around Clear Cooperation continues to stir controversy in the industry. Some argue that it restricts sellers’ freedom to explore private selling options, while others see it as a crucial step toward greater fairness and transparency in the industry.
Consumers Want Transparency
Consumers today overwhelmingly want transparency—and that holds true for real estate transactions.
Another Zillow study found that 91% of home buyers believe they should be able to see all listings and access them for free. Yet, private listing networks can create barriers that can force buyers to work with specific brokerages.
“The only way a buyer can see homes for sale in a private network is by agreeing to work with an agent from a certain brokerage, often getting locked into a commission rate and agreement before seeing the inventory. This process of limiting access to see all listings and removing the option of which agent a buyer wants to hire creates a massive disadvantage to buyers.”
Wacksman argues that, in a housing market where inventory is down 26% from pre-pandemic levels, buyers need access to every available option. Sellers, meanwhile, need the broadest exposure to get top dollar.
Misleading Information?
Wacksman warns that large brokerages “are the only party that stands to gain by proliferating these ‘velvet rope’ clubs.” The problem? Agents inside these brokerages are often misled about the true impact of pocket listings.
A survey of 1,000 agents found:
- 64% believe off-market listings benefit sellers.
- 56% think private listing networks increase home sale prices.
In addition, 44% of agents admitted to listing a home on a private network in the past six months—despite 97% saying they believe it’s important to have access to all available listings in one place.
While the data shows off-MLS listings limit exposure and often cost sellers thousands, some homeowners still choose private networks for specific reasons, such as:
- Privacy – Avoiding public marketing or unwanted attention
- Fewer showings – Minimizing disruptions to daily life
- Faster sale – Targeting pre-qualified buyers for a smoother transaction
Sellers ultimately have the choice—but it’s up to agents to understand their priorities and clearly explain the trade-offs.
