C
ompass is introducing a standardized disclosure form for home sellers participating in its 3-phased marketing strategy, which starts with private exclusives and "coming soon" promotions before listing on the MLS. The single-page form includes an overview of the strategy and seller authorization for each phase, as well as the option to opt out and list directly on the MLS.

    The disclosure highlights benefits of delayed marketing, such as not accruing days on market or displaying price history. However, it also notes that listings not distributed via the MLS may receive less exposure, fewer offers, and a lower sale price. Compass emphasizes its commitment to fair housing laws while advocating for seller choice, but critics warn of potential discrimination and harm to buyers and sellers.

    The form formalizes a pre-marketing timeframe, which varies by region and market, as local MLSs set the delayed marketing window. Some MLSs have declined to participate in this policy, including CRMLS, which has set its timeframe to zero days. Compass argues that its 3-phased strategy allows for extra time to prepare homes for public viewing and maintains privacy until sellers are ready to list on the open market.

    Compass CEO Robert Reffkin stated that the "enhanced" form represents a step towards greater transparency and professionalism in the industry, while ensuring clients understand how the marketing strategy works. The company has 6,995 Compass Private Exclusives nationwide, but its push for private inventory has been met with controversy from industry leaders who argue it harms buyers and sellers, presents a competitive disadvantage to smaller brokerages, and can lead to discrimination.

    Critics point out that homes listed off the MLS sell for less and that pre-marketing offers no cost benefits for sellers. Zillow has barred listings that have been marketed publicly but not widely distributed via the MLS, while eXp released its own seller disclosure form discouraging private listings.