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new study by Zillow has shed light on the impact of private listings on home sales, revealing that sellers who don't list their properties on the multiple listing service (MLS) may be leaving thousands of dollars on the table. According to the analysis, off-MLS sellers lost an average of nearly $5,000 per home in 2023 and 2024, with some areas experiencing losses as high as $30,000.

    Zillow CEO Jeremy Wacksman has spoken out against private listings, calling them a "double dip" attempt by brokerages to profit from both sides of the transaction. He argues that these listings limit a home's exposure to the market, ultimately harming sellers who are often making their largest financial investment.

    A January survey found that 63% of sellers reported being encouraged by their agents to list privately, up from 18% five years ago. However, many agents appear to be misinformed about the benefits of private listings, with 56% believing they lead to higher sales prices and 61% thinking they benefit buyers.

    Zillow's analysis covered 46 states and 10 million transactions, revealing that sellers in 44 of those states saw losses due to off-MLS sales. The hardest-hit states were California, New York, and Massachusetts, with median losses ranging from $13,749 to $30,075. Lower-priced homes were found to experience the biggest losses, with a median loss of 3.1% for the bottom tier of Zestimates.

    The study's findings are likely to fuel the debate over private listings and the Clear Cooperation Policy instituted by NAR in 2020. While some brokerages have pushed back against the rule, arguing that it limits homeowners' control over their property marketing, Wacksman maintains that private listings come at the expense of sellers.