A new data analysis by Zillow Group (NASDAQ: Z, ZG) has determined that home sellers who opted not to place their properties on a Multiple Listing Service (MLS) lost out on more than $1 billion collectively over the past two years.
Zillow’s analysis concluded that home sellers who opted to sell off the MLS typically lost out on nearly $5,000 during 2023 and 2024, selling their home for 1.5% less than those listed on the MLS. In predominantly nonwhite communities, the homes not included on the MLS typically sold for 3.2% less than MLS-listed homes — more than double the 1.2% loss in majority white neighborhoods, or $9,850 lost per off-market listing in communities of color compared to a loss of around $3,700 per home in majority white neighborhoods. Zillow’s survey data found Hispanic and Black home sellers are more often guided toward listing their homes privately by agents.
“The data is clear that selling off the MLS costs home sellers in communities of color thousands of dollars in lost value,” said Orphe Divounguy, Zillow senior economist. “These off-market listings not only harm sellers, but they limit exposure to potential buyers, possibly deepening inequities that have long existed in real estate. We must maintain transparency in the housing market so we don’t go back to the dark ages of real estate.”
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If the commissions are less by a couple points it is wash
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