L
ast year's lawsuit regarding agent commissions has led to a shift in how homes are listed, with some brokerages keeping listings off the MLS and exclusive to their own network. Proponents argue this maintains sellers' privacy and provides marketing advantages, while opponents claim it harms sellers by limiting potential buyers.

    The real estate market is experiencing a downturn, with existing-home-sales dipping 3% from last month and home prices rising only 2%. This has shifted the market from favoring sellers to a more neutral position. Homes are taking longer to sell, with the median number of days on market up 14% from last year.

    A class action lawsuit settled in late 2024 eliminated the cooperative compensation rule, requiring buyers to negotiate commissions directly with their agents. Some brokerages, like Compass, have responded by keeping listings private and marketing them only within their own network. This strategy allows them to collect commissions from both buyers and sellers, attract more buyers, and retain agents.

    Compass claims this approach benefits sellers by maintaining their privacy and allowing for early interest testing without accumulating days on market. However, many argue that limiting the pool of potential buyers is detrimental to sellers.

    The negative view holds that not promoting a home to every agent and buyer possible is a dereliction of duty. Zillow's massive exposure to millions of viewers makes it an attractive platform for listings, but some brokerages are opting out. This has raised concerns about transparency, fairness, and potential lawsuits for breach of fiduciary duties.

    Research shows that homes sold on the MLS sell for more than off-market properties, and experts warn that private listings could create fair housing problems by excluding certain buyer segments. Today's homebuyers and sellers demand market transparency, which private listings undermine.