Homes Listed on the Open Marketplace in the Mid-Atlantic Sold for Nearly $56,000 More During the Height of the Pandemic Housing Market

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Aug 30, 2022, 10:00 ET

Bright MLS study of more than 840,000 home sales transactions finds that off-MLS properties and office exclusives or "pocket listings" sell for less and spend more time on market

The open MLS marketplace provides equal and accessible access to homes for all consumers, ensuring that all buyers have an opportunity to view and consider properties
As housing inventory fell from 2019 to 2021, the premium sale price of listings on the MLS increased from 9.8% to 14.8%
Nearly two-thirds of homes initially marketed as "office exclusives" within a brokerage sold only after being listed on the MLS
Homes initially listed on the MLS sold in an average of seven days, while it took 24 days to sell a house that was first offered as an office exclusive

ROCKVILLE, Md., Aug. 30, 2022 /PRNewswire/ -- A home listed for sale on a multiple listing service (MLS) sells for more than a home offered exclusively by an agent, according to analysis of over 840,000 listings throughout the Mid-Atlantic in a new study released today by Bright MLS, the nation's second largest MLS. The impact of listing on an MLS grew during the pandemic housing boom with the sales price gap increasing to 14.8% or $55,779 – a clear benefit to homeowners looking to maximize the return on their home sale.

The analysis, conducted in collaboration with Dr. Kevin Gillen, Senior Research Fellow, Lindy Institute for Urban Innovation at Drexel University, utilized Bright MLS listing information and public records to examine a total of 841,266 home sales transactions taking place in the five-state Mid-Atlantic region and the District of Columbia between January 2019 and the first quarter of 2022. To ensure consistent data for both on- and off-MLS transactions, the analysis took into account factors that influence home prices, such as construction type and year, square footage, property features, distance to the region's central business district and census data.

"Over the past few years, demand for housing has been very strong and homes have been selling briskly, often above the seller's asking price," said Bright MLS Chief Economist Dr. Lisa Sturtevant. "This research shows that even when homes flew off the market with little prep, there was a clear benefit to listing a property on Bright MLS, which offers the widest exposure for your home, including ensuring that your property is visible to home buyers nationally."

Homes sold on the MLS commanded a 13% higher price than those sold off-MLS over the course of the analysis. This amounts to an additional $45,471 to the seller for the typical home sold over the study period, with MLS-listed homes in the Mid-Atlantic's largest metros of Washington, D.C., Baltimore and Philadelphia selling for 14.9%, 10.5% and 10.1% more on average, respectively.

The analysis showed that the benefit of listing on an MLS grew throughout the pandemic, with homes selling in the region for a premium of 9.8%, 10.1% and 14.8% in 2019, 2020 and 2021, respectively.

Conversely, the study found that office exclusives—properties marketed solely within an agent's firm— closed at a lower price and significantly slower than those listed on the MLS. Only 12.6% of properties that were initially marketed as office exclusives resulted in a successful sale off MLS. Nearly two-thirds (63%) of office exclusives were eventually promoted and sold as an MLS listing, with the remaining 24.4% of properties marketed as office exclusives between April 2021 and December 2021, indicating they did not sell or were removed from the market. Additionally, those properties that began as an office exclusive and ultimately sold on the MLS spent an average of 24 days on market, compared with seven days for an MLS listing.

"There could be a specific reason why someone might list their home exclusively with an agent, and not on the open marketplace facilitated by the MLS, and they may be willing to sacrifice the potential lost value," said Brian Donnellan, President and CEO of Bright MLS. "However, when a property is marketed through a limited number of agents in a specific market area, many potential buyers are excluded from the process, creating an unlevel playing field for consumers that goes against the fair housing practices the industry is working hard to promote."

To view the full report, including charts and methodology, please visit http://brightmls.com/OnMLSStudy

About Bright MLS

Bright MLS was founded in 2016 as a collaboration between 43 visionary associations and two of the nation's most prominent MLSs to transform what an MLS is and what it does, so real estate pros and the people they serve can thrive today and into our data-driven future through an open, clear and competitive housing market for all. Bright is proud to be the source of truth for comprehensive real estate data in the Mid-Atlantic, with market intelligence currently covering six states (Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia) and the District of Columbia. Bright MLS's innovative tool library—both created and curated—provides services and award-winning support to well over 100k real estate professionals, enabling their delivery on the promise of home to over half a million home buyers and sellers monthly. In 2021, Bright subscribers facilitated $141B in real estate transactions through the company's platform. Learn more at Bright MLS.com.

SOURCE Bright MLS