Selling a home is one of the biggest financial decisions a homeowner will make. The goal is almost always to maximize profit, yet many sellers unknowingly leave money on the table by choosing to sell off-market rather than listing on the Multiple Listing Service (MLS).

New research from Zillow confirms what real estate professionals have long understood: homes that are not listed on the MLS typically sell for less. In fact, over the past two years, sellers who skipped the MLS lost a collective $1 billion in potential profits, with the average off-MLS home selling for $4,975 less than those listed publicly.

For homeowners in Rhode Island and beyond, this research highlights the importance of full market exposure when selling a home. Without it, sellers risk missing out on higher offers and more competitive terms.

How Much Money Are Sellers Losing by Skipping the MLS?

Zillow’s study analyzed over 2.7 million home sales from 2023 and 2024. The findings were clear: homes sold off the MLS typically sold for 1.5 percent less than similar homes listed on the MLS.

In some states, the financial impact was even greater. California home sellers lost an average of $30,075 by selling off-market. In Massachusetts, sellers lost an average of $20,171, and in New York, the median loss was $13,749.

The issue was widespread, with 44 out of 46 states included in the study showing negative financial impacts for sellers who did not list on the MLS. In 33 states, median losses exceeded one percent, and in 10 states, losses were greater than two percent.

While some homeowners may believe they are saving time or hassle by selling privately, these numbers make it clear: listing on the MLS results in a higher sale price in nearly every scenario.

Why Do Off-MLS Homes Sell for Less?

The key reason off-market listings sell for less is simple: limited exposure means fewer potential buyers. When a home is listed on the MLS, it is made available to all licensed real estate professionals and their clients, as well as syndicated across major platforms like Zillow, Realtor.com, and Redfin.

Selling off-market, on the other hand, means fewer eyes on the property and less competition among buyers. Without an MLS listing, only buyers who work with the listing brokerage may be aware of the home’s availability. In some cases, these private listing networks are marketed as exclusive, but in reality, they restrict the number of buyers who even know the home is for sale.

Less competition means fewer offers, weaker negotiating power, and ultimately, a lower sale price.

Which Sellers Are Most Affected by Off-MLS Sales?

Zillow’s study found that lower-priced homes were impacted the most by off-MLS sales. The median loss by price tier was as follows:

• Bottom-tier homes lost 3.1 percent of value.

• Lower-tier homes lost 2.7 percent.

• Middle-tier homes lost 1.6 percent.

• Upper-tier homes lost 0.7 percent.

• Luxury homes lost just 0.4 percent.

Sellers in urban areas also saw greater financial losses compared to those in suburban or rural markets. Urban homes sold off-market had a median loss of 2 percent, while suburban homes lost 1.5 percent and rural homes lost 0.9 percent.

For sellers of starter homes and mid-range properties, skipping the MLS can be particularly costly, as these homes typically attract more demand when properly marketed.

The Impact on Buyers: Less Choice and Fewer Opportunities

The drawbacks of off-market listings are not limited to sellers. Buyers also suffer when homes are not publicly listed, as private listing networks restrict inventory and make it harder to find the right home.

According to Zillow’s research, 91 percent of homebuyers believe they should have access to all available listings for free. However, when sellers list off-market, these properties remain hidden from the majority of buyers, reducing their options and increasing competition for the limited homes that are publicly available.

With housing supply still 26 percent lower than pre-pandemic levels, transparency in the real estate market is more important than ever. When homes are listed on the MLS, they become visible to all qualified buyers, ensuring a more competitive and fair marketplace.

When Would Selling Off-MLS Make Sense?

While listing on the MLS is the best strategy for maximizing a home’s sale price, there are a few rare scenarios where selling off-market may be reasonable.

Some valid reasons include:

• Selling to a pre-arranged buyer, such as a family member or friend.

• Selling a high-profile property where privacy is a priority.

• A homeowner needing a fast, cash sale without going through the traditional listing process.

Outside of these unique situations, most sellers will benefit financially from full MLS exposure.

Final Thoughts: The MLS Is the Best Path to Maximum Profit

For Rhode Island homeowners looking to sell in 2025, the research is clear: Listing on the MLS results in a higher sale price, more competition, and a smoother transaction.

Off-market sales may seem convenient, but they come at a cost—one that most sellers cannot afford to ignore.

If you are thinking about selling your home, working with an experienced real estate team that prioritizes MLS marketing is essential. At Slocum Home Team, we ensure that every home we list reaches the widest possible audience to drive competition and secure the best possible price.

If you want to learn more about maximizing your home’s value, let’s talk.

Call Nick Slocum or one of The Slocum Home Team’s top agents today to discuss your home’s value and listing strategy.