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stark disparity exists in the real estate market, with private listings in communities of color resulting in significantly lower sale prices compared to MLS-listed homes. According to a Zillow study, homes sold privately in predominantly minority neighborhoods fetch 3.2% less than their MLS counterparts, a loss of $9,851 per off-market listing. In contrast, majority white neighborhoods experience a mere 1.2% loss, translating to $3,694 per home.

    This trend threatens to undermine the progress made in real estate transparency, warns Orphe Divounguy, Zillow's senior economist. "Private listings not only harm sellers but also limit exposure to potential buyers, potentially exacerbating existing inequities." To avoid a return to the "dark ages" of real estate, Divounguy advocates for increased transparency.

    The broader implications are substantial: Zillow estimates that homebuyers and agents collectively lost over $1 billion in 2023-2024 due to private sales. The study analyzed 10 million transactions, with 3.79 million qualifying for inclusion in the data. A separate survey revealed racial disparities in agent advice, with nearly three-quarters of Hispanic and Black sellers recalling encouragement to privately list their homes, compared to just 24% of white sellers.

    As the industry grapples with these findings, Zillow remains a vocal supporter of the Clear Cooperation Policy (CCP), which requires agents to add listings to the MLS within 24 hours of public marketing. The National Association of Realtors is set to make a decision on CCP in the coming weeks, amidst calls from some to eliminate or modify the policy.