T
he National Association of Realtors has dealt a significant blow to Compass, the dominant US brokerage, by upholding its policy requiring agents to publicly list properties on local online databases. The move is seen as a victory for homebuyers and sellers who rely on these listings to navigate the market.

    Compass had been pushing the real estate association to end this policy, which it adopted in 2020, requiring agents to post listings to multiple listing services (MLS) within a day of marketing them publicly. The brokerage wanted to allow its agents to list properties privately, where only their network of agents could see them. This would have given Compass an advantage over other brokerages and potentially limited buyers' access to information.

    Critics argue that private listings benefit Compass at the expense of home sellers who may not get the best price or buyers who won't see the listing unless they go through a company agent. The association's decision will continue to require agents to list homes on MLS, but it will introduce an exemption allowing some sellers to delay listing their properties on public-facing databases like Redfin and Zillow.

    "This is a win for consumers," said Brian Boero, CEO of 1000watt, a marketing agency for residential real estate companies. "NAR just called Compass' bluff by introducing a new status for listings that accommodates concerns about seller rights and privacy."

    Compass has been successful in mitigating the listing policy in many places, with its CEO Robert Reffkin stating that it's not being enforced in nearly half of the markets where they operate. However, Boero believes this decision will intensify the fight between Compass and the real estate association.

    The debate over private listings is far from over, with some brokerages already having their own exclusive listing networks. In the Bay Area, Compass controls a significant portion of the market, but its efforts to promote private listings have been met with resistance from critics who argue that it's anti-competitive and limits buyers' access to information.

    The association's decision will allow for greater choice in marketing properties while considering buyers' need for access to MLS listings. As one industry expert noted, "MLSs shouldn't restrict how homeowners market their homes at all." The real estate association has taken a step towards balancing the interests of sellers and buyers, but the battle over private listings is likely to continue.