By Colleen Barry, Chief Executive Officer, Gibson Sotheby’s International Realty
There has been ongoing debate about how and when sellers and their realtors use MLS systems. The decision whether or not to list a home in the MLS or to sell it privately can directly impact a seller’s ultimate sale price. Therefore, I want to share important data and key considerations to help potential sellers make the right decision for themselves.
What is the MLS?
The Multiple Listing Service (MLS) is a comprehensive database used by real estate professionals to streamline the buying and selling process and share property information with other agents and MLS subscribers. Some states have multiple MLS systems, each with its own database that agents may use for market analysis. By pooling details on available properties, the MLS helps ensure that buyers have access to the most up-to-date and accurate information, while giving sellers maximum exposure in the market. These databases also syndicate listings to Zillow, Realtor.com, and other widely used real estate portals as well as numerous consumer websites and our brokerage website, sothebysrealty.com/gibsonsir. We harness the power of the MLS to curate an extensive selection of properties that cater to discerning buyers. Whether you’re searching for your next home or exploring a new investment opportunity, our website offers a seamless experience to discover properties that meet your standards.
Why Would Someone NOT Want to List Their Home in the MLS?
In rare cases, a seller’s need for privacy may outweigh the goal of achieving the highest sale price and best terms. For example, a business owner selling their company might avoid listing their home in the MLS to prevent employees from speculating about the sale. Similarly, some high-profile individuals or celebrities may opt for off-market sales due to security concerns—though many still choose to use the MLS.
What Are the Risks of Selling Off-MLS?
A study by Bright MLS found that between 2019 and the first quarter of 2023, homes listed in the MLS sold for 17.5% more than comparable off-MLS homes. Another study found that listing off the MLS cost sellers more than $1 Billion. This analysis was done by Zillow, whose CEO said private listings “come at the expense of the seller” and are an attempt by some brokerages to “double dip.” (Real Estate News)
By not listing a home in the MLS, the buyer willing to pay the highest price may never even see the property. This could result in a loss of tens or even hundreds of thousands of dollars. Because of this, MLS PIN (the MLS in our market) requires sellers to sign a waiver acknowledging that they understand they may receive less for their property if they choose not to list it in the MLS. Despite this, some companies promote private groups of non-MLS listings. Even in these cases, sellers may be eliminating 80% or more of potential buyers and their agents from seeing their home.
How Can Sellers Maintain Privacy Without Limiting Their Results?
There are ways to protect privacy while still maximizing exposure to qualified buyers. At Gibson Sotheby’s International Realty, we prioritize helping clients get the best possible outcome by leveraging the widest marketing reach using the MLS.
However, for those with special circumstances, there are alternatives:
- Limit Listing Photos: If security is a concern, sellers can limit the number of listing photos. A full interior tour is not required to list a home in the MLS.
- “Whisper Campaigns”: With this approach, no marketing materials are distributed, and sometimes, no photos are taken. The listing agent shares property details only with select agents who may have an interested buyer.
- RealScout Exclusives: Our partnership with RealScout allows Gibson Sotheby’s International Realty agents to share the listing only with our agents and their clients through the RealScout app, often with limited photos.
- Top Agent Network (TAN) and Private Listing Portals: These platforms enable limited exposure to select agents rather than the full MLS.
- The Collection: This exclusive marketing program for private listings represented by Sotheby’s International Realty showcases private listings to an elite audience, including 7,200+ Preferred clients of Sotheby’s auction house and top sales associates affiliated with the brand. This enhances exposure while maintaining privacy.
While there are solutions for sellers who require discretion, MLS entry is the best strategy for most sellers. The more buyers who see a property, the greater the competition—and competition drives price and favorable terms.
Our advisors empower their clients to make the right decisions for themselves. To learn more about marketing and selling your home with Gibson Sotheby’s International Realty, click here.
To find a home that suits your lifestyle, click here.