Are Private Listing Networks Worth It? A Deep Dive for Home Sellers

Written by David Dodge 

In recent years, a notable trend has emerged in the real estate market: an increasing number of brokerages are encouraging home sellers to utilize private listing networks instead of the traditional Multiple Listing Service (MLS). A recent Harris/Zillow poll conducted in January 2025 reveals that many sellers are unaware of the implications of this shift and how it can affect their home sale.

The survey, which included over 2,000 U.S. adults, highlights a concerning reality: many sellers are not fully informed about their listing options. Here’s what you should consider before deciding where to list your property.

Lack of Awareness Among Sellers

The poll indicates that a significant portion of sellers are in the dark regarding private listings. Specifically, 68% of respondents who worked with real estate agents reported that their agents did not explain the differences between the MLS and private listing networks. Furthermore, 63% of sellers who sold their homes in the last five years were advised to list privately, a stark increase from just 18% of sellers more than five years ago. This shift suggests a fundamental change in marketing strategies, with some brokerages opting to limit exposure to potential buyers.

Do Private Listings Benefit Sellers?

The evidence suggests otherwise. While some brokerages claim that private listing networks provide sellers with more control over the sale process, many sellers ultimately regret this choice. According to the data, 43% of those who initially listed privately ended up switching to the MLS. Only 35% remained with the private listing approach, indicating that more than half of sellers were dissatisfied with their decision.

The reason for this change is clear: homes listed on the MLS tend to attract a larger pool of buyers, resulting in better offers and higher sale prices. Research from Bright MLS indicates that properties listed publicly sell for an average of 17.5% more than those kept off the MLS. This significant price difference underscores the importance of visibility in the home-selling process.

Interestingly, even among sellers who initially preferred private listings, 44% changed their minds after learning about the benefits of MLS exposure—a figure that rose to 56% among older sellers. This demographic shift highlights the need for transparency and education in the real estate market.

Buyer Preferences and Market Competition

The survey also sheds light on buyer preferences, revealing that buyers desire full access to listings. A striking 86% of Americans believe that all for-sale home listings should be available to buyers, while 81% think that increased visibility can lead to bidding wars, ultimately benefiting sellers. Additionally, 73% of respondents expressed concerns that restricting access to listings could result in discrimination, raising significant fair housing issues.

This begs the question: if consumers overwhelmingly favor transparency in home sales, why are some brokerages steering sellers toward private listings? The answer may lie in the financial incentives for brokerages, which can benefit from keeping listings in-house rather than exposing them to the broader market.

The Importance of Transparency in Real Estate

Transparency is a critical factor in the real estate market. When sellers are not fully informed about their options, they may make decisions that do not align with their best interests. The lack of clarity surrounding private listing networks can lead to missed opportunities and lower sale prices.

As a seller, it’s essential to ask questions and seek clarity from your real estate agent. Understanding the pros and cons of both private listings and MLS exposure can empower you to make informed decisions that maximize your home’s value.

Choosing the Right Agent: Prioritizing Exposure

When selecting a real estate agent, sellers typically prioritize one key factor: exposure to the largest possible buyer pool. The survey found that 52% of sellers identified maximizing visibility as their top priority, while only 21% considered access to an exclusive buyer network important—the very premise that private listing networks promote. This contradiction highlights a disconnect between what agents may advocate and what sellers truly want.

As Dennis Norman aptly points out, “The MLS remains the best tool for maximizing exposure, generating competition, and getting top dollar for your property.” This statement emphasizes the importance of choosing an agent who prioritizes your interests and understands the dynamics of the current market.

The Bottom Line: Who Benefits from Private Listings?

The data clearly indicates that private listing networks tend to favor brokerages more than they do sellers. These networks allow firms to retain listings (and associated commissions) within their own walls, often at the expense of sellers who may be missing out on potential profits.

If you’re in the process of selling your home, it’s crucial to ensure that your agent is prioritizing your best interests rather than their brokerage’s financial gain. If your agent suggests a private listing network, don’t hesitate to ask for clarification and demand to see the supporting data. Understanding your options is key to making an informed decision that could significantly impact your sale.

Final Thoughts: Navigating the Real Estate Landscape

In summary, as the landscape of real estate continues to evolve, staying informed and advocating for your interests is more important than ever. The shift towards private listing networks may seem appealing at first glance, but the data suggests that traditional MLS listings offer greater benefits for sellers.

By prioritizing transparency, understanding your options, and choosing the right agent, you can navigate the complexities of the real estate market with confidence. Remember, your home is likely one of your most significant investments—make sure you’re getting the best possible return when it comes time to sell.

In the end, knowledge is power. Equip yourself with the information you need to make the best decisions for your home sale, and don’t be afraid to challenge conventional wisdom in the real estate industry. Your financial future depends on it.