Brokerage Shows Why Sellers Should Rethink Pocket Listings
April 21, 2014
Do off-MLS listings cause sellers to ultimately fetch a lower sales price? Yes, according to the JacksonFuller Real estate team in San Francisco, which sought to find out in a study of sales prices of MLS-marketed and off-marketed homes so that they could better advise their home sellers.
The brokerage compared 2013 off-MLS and MLS sales prices of San Francisco residential sales. They scanned tax records for residential real property transfers for 2013 and gathered MLS data from the San Francisco Association of REALTORS®. In 2013, about 89 percent of homes were marketed on the MLS compared to 11 percent that were off-MLS in San Francisco, according to their findings.
MLS-marketed single-family home sales averaged a 17 percent higher sales price than off-MLS sales, the brokerage found. The average sales price for a single-family home sold without MLS marketing was $1,069,456, about 17 percent less than the average MLS-marketed sales price of $1,290,112, according to the report.
MLS-marketed condo sales averaged 9 percent higher sales price than off-MLS condo sales, according to the tax records for existing resale homes. The average sales price for a condo sold without MLS marketing was $890,070 compared to $973,916 average for MLS-marketed sales, according to the brokerage’s analysis.
“According to our calculations, in 2013 the decision to keep a property off the MLS cost the average condo seller around $84,000 in foregone profits while the average single-family home seller passed up about an additional $221,000,” according to the report. “Based on the data we’ve seen to date, we believe that unless a seller specifically instructs us that the highest possible sales price isn’t their number one objective, the best way to ‘win’ for our sellers requires MLS marketing.”
The full report is available for download at the JacksonFuller Real Estate Team website.
Source:“Off-MLS Sales in 2013: Home Run or Foul Play?” PRWeb (April 17, 2014)
Updated: January 22, 2021