For different reasons, some people prefer to sell their homes without listing them on MLS. It may be because they don’t want the hassle of buyers parading through their homes or because they think they’ll save on the commission or for some other reason. Whatever their preference, my view is that they’re entitled to do whatever they want and I wish them the best of luck. But before YOU (an ardent reader of this blog for whom I want only the best) head down this path, be aware of the risks involved with selling your home “off MLS”.

The MLS system is truly remarkable. It’s designed to provide properties with maximum market exposure. We’re fortunate that Toronto has one of the largest MLS systems in the world. Many world class cities don’t even have an MLS system at all! When a property is listed on our MLS system, it’s exposed not only to the 30,000+ realtors who are members of the Toronto Real Estate Board, but to their countless clients as well.

Doesn’t it make sense to take advantage of this system when it’s time to sell your home? Shouldn’t you be in “business mode”, trying to maximize the money you end up with in your pocket after you sell, even if that means allowing people to see your home or paying a commission?

A couple of weeks ago, another agent told me of a seller who was disappointed because he had sold his home “off MLS” for approximately $40,000 less than an MLS listed home I sold on the same block. It could be that he paid a little less in commission or that he wasn’t disrupted by buyers parading through his home, but his disappointment told me that he knew he had made a mistake by not listing his home on MLS.

I’m not saying that you’ll always do better if you list your home on MLS because that’s not the case. I’ve had several clients over the years who have done EXTREMELY well selling their homes “off MLS”, but they did their homework. Preparation is crucial. Each of them asked me the following question before deciding whether to list on MLS or sell to an “off MLS” buyer: “What’s the absolute best price you think we can get for our home if we list it on MLS and get multiple offers?”. (Actually, in most cases it was me who suggested they compare the price they were being offered “off MLS” to the best possible price they could get by going the MLS route.)

If you’re thinking of selling your home “off MLS’, make sure to ask your agent this exact question. If there’s a buyer who’s willing to pay you a lottery winning price, it might be worth your while to take it. But keep in mind that there’s always a chance there may be another buyer out there who will pay you more and this second buyer may only find out about your home if it’s listed on MLS so you have to be prepared to live with this possibility.