Why Some Homes Sell for More Than Others (Hint: It’s Not Just Location)

Selling Off-Market? Here’s Why It Could Cost You Thousands

If someone told you that selling your home off-market could cost you thousands—would you still do it?

That’s exactly what’s happening to sellers across the country who choose to sell outside the MLS (Multiple Listing Service)—the main database where real estate agents list homes for sale.

A new Zillow study found that sellers lost a staggering $1 billion in 2023 and 2024 by opting for private sales. On average, homeowners walked away with $4,975 less per sale, and in high-priced markets like California, that number shot up to $30,000 per home.

Before we go any further, let’s break down the difference between listing on the MLS versus private sales—and why it matters.

MLS vs. Private Sales: What’s the Difference?

✅ MLS Listings: Think of the MLS as the main stage—where your home gets maximum visibility. Listing on the MLS means your home appears on Zillow, Realtor.com, Redfin, and all the major real estate sites. Every buyer and agent sees it, creating more competition and better offers.

🚫 Private Sales (Off-MLS): Selling privately is like offering your home in a small, exclusive club—where only a limited group of buyers even know it’s for sale. Some agents may push this route to keep the deal within their network, but with fewer buyers seeing the home, there’s less competition—which usually means a lower sale price.

So why do some sellers still choose off-market sales? And more importantly, how can you protect your biggest financial asset and maximize your home’s value?

Let’s break down the hidden pitfalls that cause sellers to lose money—and what you should ask your real estate agent to make sure it doesn’t happen to you.

Why Do Some Sellers Skip the MLS?

Even with the financial risks, some homeowners opt for off-MLS sales (also known as pocket listings) for a few reasons:

• Privacy: Some sellers don’t want their home sale to be public.
• Fewer Showings: They’re aiming for a quick, low-hassle transaction.

And while the decision is ultimately up to the seller, here’s what the data shows: Less exposure = fewer buyers = lower sale prices.

According to Zillow’s analysis:

📉 Nationwide, sellers lost an average of 1.5% ($4,975) on their sale price.
📉 In California, the average loss was 3.7%—or $30,075 per home.
📉 Every price tier, from starter homes to luxury estates, saw lower sales prices when listed off the MLS.

Simply put, less competition means less money in your pocket.

But this doesn’t just apply to private sales. Poor marketing, bad pricing strategies, and limited access for buyers can also eat into your final sale price.

What Causes Homes to Sell for Less?

A lot of sellers assume their home’s value is set in stone, but the truth is how you list, market, and negotiate makes a huge impact. Here are the biggest mistakes that can cost you thousands—and how to avoid them.

1. Poor Marketing & Limited Exposure

If your home isn’t seen, it won’t sell for top dollar. Many sellers assume that just getting their home on the MLS (and onto Zillow, Realtor.com, etc.) is enough.

In reality, that’s the bare minimum.

What to Ask Your Realtor:

• “Where will my home be marketed?”
• “What makes your marketing different from the top three Realtors in the area?”
• “How will you make my listing stand out on the MLS and Zillow?”
• “Can you show me examples of your professional photography and videography?”
• “Will you do open houses?”

2. Overpricing from the Start

Overpricing can be just as dangerous as underpricing. Homes that sit on the market too long become stale, leading to price drops and buyer skepticism.

What to Ask Your Realtor:

• “How do you determine the best listing price?”
• “What’s the average sale-to-list price ratio in my area?”
• “What pricing strategies do you recommend to attract multiple offers?”

3. Lack of Strategic Negotiation

Many sellers focus only on the sale price—but negotiation terms matter just as much. An experienced agent knows how to navigate contingencies and push for better terms beyond price.

What to Ask Your Realtor:

• “How do you handle multiple-offer situations?”
• “What negotiation strategies do you use to maximize my profit?”
• “How do you ensure buyers are serious and financially qualified?”

4. Making Your Home Hard to Show

Buyers won’t fight for a home they can’t see. If your agent limits showings, restricts access, or fails to create urgency, you could be losing out on serious money.

What to Ask Your Realtor:

• “What’s your plan for maximizing showings?”
• “Will you offer flexible viewing options, including virtual tours?”
• “How do you create urgency when first listing a home?”

The Bottom Line: Don’t Leave Money on the Table

The numbers don’t lie—home sellers lost $1 billion by skipping the MLS. But even if you do list your home on the MLS, factors like poor marketing, bad pricing, and limited access can still cost you thousands.

If you’re thinking about selling, ask the right questions, demand transparency, and work with an agent who prioritizes your financial success.

Your home is one of your biggest investments—make sure you get every dollar it’s worth.