ARELLO study finds private listings sell for less than MLS

The recent study by ARELLO, which analyzed 10 million sales from January 2024 to June 2026, found that private listings tend to sell for less than those listed on the Multiple Listing Service (MLS). This finding may seem counterintuitive, as one might expect that properties listed privately would command higher prices due to reduced exposure and exclusivity. However, the data suggests that this is not the case.

The study's use of Zillow's Automated Valuation Model (AVM) as a benchmark for expected sale prices adds a layer of credibility to the findings. By comparing actual sale prices to AVM expectations, the study provides a more nuanced understanding of how private listings perform in the market. For the lease industry, this information is particularly relevant, as it highlights the importance of transparency and broad exposure in achieving optimal sale prices. If private listings are selling for less, it may be due to limited visibility and reduced competition among potential buyers.

As the real estate market continues to evolve, it's essential to watch how the dynamics between private listings and MLS listings play out. Will the trend of private listings selling for less persist, or will market forces adjust to narrow the gap? Additionally, lease industry professionals should keep an eye on how this study's findings might influence changes in listing strategies and the role of AVMs in determining property values. As the market adapts, it's crucial to stay informed about the implications of these shifts on lease transactions and the broader real estate landscape.

Originally reported by housingwire.com. LeaseNews adds analysis for real estate & property readers.