"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." ~ Jeremy Wacksman, Zillow
Thinking about selling your home? Great! Now, let’s talk about a decision that could cost you tens of thousands of dollars if you get it wrong: whether to list on the Multiple Listing Service (MLS) or go the private, off-market route.
A new study from Zillow found that sellers who skipped the MLS left more than $1 billion on the table in 2023 and 2024. That’s an average loss of about $5,000 per home - and in some states, much, much more (hello, California, where some sellers lost over $30,000).
So, what’s the deal with private listings? And why do some agents push them? Let’s break it down.
The Allure of Private Listings (And Why It’s Mostly Smoke and Mirrors)
A private exclusive listing (sometimes called a pocket listing) means your home is only shown to a select group of buyers. It never hits the MLS, meaning it never gets maximum exposure. Some brokerages pitch this as a way to keep things “discreet” or “exclusive.” Sounds fancy, right? Maybe even like you’re selling a secret penthouse in a spy movie? But in reality, for most sellers, it’s just a bad financial move.
The (Few) Pros of a Private Exclusive Listing
- Privacy – If you don’t want nosy neighbors knowing your business, this could be appealing.
- Faster Sale (Sometimes) – If a buyer in the brokerage’s network wants your home immediately, you could close quickly. But at what cost?
- Less Foot Traffic – No open houses, no parade of strangers walking through.
But unless you’re a celebrity or selling a one-of-a-kind property, these benefits rarely outweigh the downsides.
The Many, Many Cons
- Less Competition = Lower Sale Price - The more buyers see your home, the more likely you are to get multiple offers, leading to a higher selling price. If your home is only marketed within a closed network, you’re limiting demand and, more importantly, leaving money on the table.
- Your Agent Might Be ‘Double Dipping’ - Some brokerages push private listings because they want to represent both the buyer and the seller - collecting commission from both sides. That’s great for them, but not necessarily for you.
- Agents May Mislead You - A recent survey found that 63% of sellers were encouraged by their agents to list privately - up from 18% just five years ago. Yet many agents don’t fully explain the downsides. That’s a problem.
- Homes on the MLS Sell for More - Data doesn’t lie: Zillow’s study found that homes sold on the MLS consistently fetched higher prices than those sold privately. Another study from Bright MLS found the difference was as high as 18%.
- Fewer Buyers Even Know Your Home Exists - Serious buyers browse Zillow, Redfin, and their agent’s MLS database. If your home isn’t there, most buyers won’t even know it’s for sale.
The Bottom Line? Let the Market Decide.
Unless you have an ultra-special situation that requires secrecy, listing your home on the MLS is the best way to get top dollar. The market is designed to work in your favor by bringing in as many buyers as possible, creating competition, and driving up the price. A private listing does the opposite.
If an agent tells you otherwise, ask yourself: Who benefits more from this strategy - me, or them?
Got questions? Thinking about selling and unsure what’s right for you? Let’s talk. Your biggest financial asset deserves the best possible outcome.
