Off-MLS transactions cost sellers thousands, new report finds
In San Francisco, where the typical home costs over $1M, new data indicates the share of on-MLS listings is rising — and off-MLS sellers lose significant sums.
Key points:
- Sellers who list on the MLS gain a nearly 19% price advantage over private sales, San Francisco Association of Realtors and RealReports researchers found.
- The report seeks to provide a “data-driven, standards-backed analysis” that enables an “apples-to-apples” comparison without anecdotal evidence.
- Despite the private listings push from some brokerages, the percentage of homes listed on the MLS rose in 2024 compared to 2022.
As the residential brokerage industry experiences significant consolidation activity and continues to debate the merits of pre-marketing and private listings, a new report provides compelling insight into the real value of transparency for home sellers.
SF home sellers losing hundreds of thousands
While proponents of office exclusives and private listings argue that "privacy equals exclusivity," a new study from the San Francisco Association of Realtors (SFAR) and RealReports provides data that suggests sellers are leaving significant sums on the table by avoiding the MLS and public marketing and instead selling off market or as an office exclusive. The report analyzed listing trends in San Francisco County from 2022 through 2024.
According to the white paper, homes listed on the MLS sold for about $302,000 more on average than off-MLS sales — an 18.6% price advantage, with the gap increasing from one year to the next.
Considering that San Francisco's median sale price comes in around $1.4 million — according to data from major portals Zillow, Redfin and Realtor.com — that roughly 19% price advantage for publicly marketed sales translates to hundreds of thousands of dollars.
Off-MLS deals may ultimately hurt market transparency and data
A number of industry experts and leaders have raised concerns about the correlation between off-MLS home sales and the integrity of housing data, with several arguing that private listings could also present a number of other unintended consequences, such as discrimination and anti-competitive practices. But the new white paper also suggests that off-MLS sales reduce market transparency, distort appraisals and risk undermining trust in valuation data.
The SFAR and RealReports study credits RESO Data Dictionary and Web API compliance for enabling "apples-to-apples" analysis across MLSs and data sources as it aspires to provide a "data-driven, standards-backed analysis of how the MLS impacts outcomes," the authors wrote. This data, researchers argue, means that the MLS delivers measurable, repeatable value — not just anecdotal benefit — to sellers and the broader market.
Lessons from San Francisco
In a market where listings are scarce and every deal matters, more San Francisco agents are opting for the open market. The share of homes listed on the MLS rose to 83.2% in 2024 from 79.8% in 2022, even as the amount of total listings declined during that period. The shift suggests a renewed trust in the MLS as the most effective path to full value and fair competition — not just for sellers, but for the credibility of the industry.
San Francisco remains a highly competitive — and coveted — market among the top brokerages, with giants like Compass aggressively pursuing market share. But with a wave of lawsuits plaguing the industry, continued commissions uncertainty and tech disruption, more agents are recognizing that broad exposure is leverage — and market transparency is becoming a survival strategy.
Even in one of the nation's most expensive and complex markets, the data from San Francisco suggests that exposure works. The question may not be whether the MLS can prove its value — and the value that transparency can create — but how far that value can extend in the absence of gatekeeping.