Privately listed homes disproportionately harm sellers of color

Rhea-AI Summary

Zillow research reveals significant financial losses for home sellers who opt out of Multiple Listing Service (MLS), with disproportionate impact on communities of color. During 2023-2024, off-MLS sellers collectively lost over $1 billion, with average losses of $5,000 per sale (1.5% less than MLS-listed homes).

The impact is particularly severe in communities of color, where off-MLS homes sold for 3.2% less than MLS-listed properties, compared to 1.2% in majority white neighborhoods. This translates to losses of $9,850 per home in communities of color versus $3,700 in majority white areas.

Hispanic neighborhoods face the highest impact, with off-MLS listings selling for 4% less ($13,730 difference). Survey data shows 74% of Hispanic and 73% of Black sellers were recommended private listings by agents, compared to 24% of white sellers. The current market shows 26% fewer homes available than pre-pandemic levels.

Positive

• MLS-listed properties consistently achieve higher sale prices
• Research identifies systemic issues, enabling potential corrective actions

Negative

• Over $1 billion in collective seller losses from off-MLS sales in 2023-2024
• Discriminatory impact on minority communities with 3.2% higher losses
• Hispanic neighborhoods face severe 4% value loss ($13,730) in off-MLS sales
• Disproportionate steering of minority sellers toward private listings
• 26% reduction in housing inventory compared to pre-pandemic levels

Home sellers in communities of color lose $6,000 more on average when selling off the MLS

SEATTLE, March 24, 2025 /PRNewswire/ -- Home sellers who did not list their properties on the Multiple Listing Service (MLS) — a database that allows listings to be openly marketed to all home buyers and agents — lost out on more than $1 billion collectively over the past two years. New research from Zillow® finds that the harm to home sellers is greater in communities of color.

In 2023 and 2024, home sellers who opted to sell off the MLS typically lost out on nearly $5,000, selling their home for 1.5% less than those listed on the MLS. The impact was particularly severe in communities of color — ZIP codes where a majority of household heads are Black, Hispanic, Asian American and Pacific Islander or Native American. Homes sold off the MLS in these areas typically sold for 3.2% less than MLS-listed homes — more than double the 1.2% loss in majority white neighborhoods. This equates to $9,850 lost per off-market listing in communities of color, compared to a loss of around $3,700 per home in majority white neighborhoods.

"The data is clear that selling off the MLS costs home sellers in communities of color thousands of dollars in lost value," said Orphe Divounguy, Zillow senior economist. "These off-market listings not only harm sellers, but they limit exposure to potential buyers, possibly deepening inequities that have long existed in real estate. We must maintain transparency in the housing market so we don't go back to the dark ages of real estate."

Zillow survey data shows that Hispanic and Black home sellers are more often guided toward listing their homes privately by agents. Among home sellers who worked with an agent to list their home, 74% of Hispanic sellers and 73% of Black sellers said their agent recommended listing on a private listing network, compared to just 24% of white sellers.

Homes in majority Hispanic neighborhoods are affected most, selling for 4% less when sold off the MLS — a difference of roughly $13,730. In majority Black neighborhoods, sellers of off-MLS listings typically left $5,576 on the table, 3.1% less than the typical on-MLS sale.

These trends underscore how selling off the MLS can cause sellers to miss out on the full potential of their housing wealth, particularly in communities of color. These communities may also miss out on opportunities for homeownership when homes for sale are only available to a select group rather than publicly available to all potential buyers. It is especially critical that buyers see all homes for sale in an inventory-constrained market like today's, where there are 26% fewer homes for sale than before the pandemic.

Seller Group	Median Sale Price Difference for off-MLS Listings (Percentage)	Median Sale Price Difference for off-MLS Listings (Dollar Amount)
All home sellers	-1.5 %	-$4,975
Sellers in majority white (not Hispanic) neighborhoods	-1.2 %	-$3,694
Sellers in communities of color	-3.2 %	-$9,851
Sellers in majority Black neighborhoods	-3.1 %	-$5,576
Sellers in majority Hispanic neighborhoods	-4.0 %	-$13,728

About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing, and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2025 MFTB Holdco, Inc., a Zillow affiliate.

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SOURCE Zillow

FAQ

How much money do sellers lose on average when selling homes off-MLS in 2023-2024?

Sellers lose approximately $5,000 (1.5% less) when selling off-MLS compared to MLS-listed homes.

What is the financial impact of off-MLS sales in communities of color versus white neighborhoods?

Communities of color lose $9,850 per off-market listing (3.2% less), while majority white neighborhoods lose $3,700 (1.2% less).

Which ethnic community faces the highest losses in off-MLS home sales?

Hispanic neighborhoods face the highest impact, with off-MLS listings selling for 4% less, approximately $13,730 below MLS-listed prices.

What percentage of Hispanic and Black sellers are recommended private listings by agents?

74% of Hispanic sellers and 73% of Black sellers are recommended private listings, compared to only 24% of white sellers.

How does current housing inventory compare to pre-pandemic levels?

Current market shows 26% fewer homes available compared to pre-pandemic levels.