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llustration by Lanette Behiry/Real Estate News

    Consumer advocate Stephen Brobeck warns that if large brokerages dominate private listings, they could put smaller firms out of business. This concentration of power among big brokerages would further "institutionalize" their control over the market.

    A shift to private listings combined with industry consolidation could drastically change the future of real estate sales, impacting agents and consumers alike. Small, independent teams and firms have reason to worry about the direction of the industry as large brokerages like Compass, Howard Hanna, and others seek to maintain control over their listings and inventory via office exclusives and brokerage-specific websites.

    A large-scale shift to private listings would "put small brokerages right out of business," Brobeck said. If a handful of big brokerages soon control the residential brokerage industry, it's a real possibility, he warns.

    Compass has been the most outspoken on private listings, but others have quietly followed suit or said they're prepared to pivot in the same direction. Anywhere CEO Ryan Schneider and eXp CEO Leo Pareja have both expressed support for open access to listings, but Brobeck believes that if a company of their size and scale signals a shift to private listings, it could "represent a very serious threat to a free market and a transparent market."

    The National Association of Realtors' influence has waned in recent years, enabling big brokerages to gain dominance. Even if the market shifts back in favor of buyers, those brokerages may not change course. Power gets concentrated and institutionalized, making it difficult to revert to a more open and transparent market.

    Zillow's opposition to private listings is seen as self-serving by some, but Brobeck argues that motive doesn't matter – what matters is the impact of their intervention on the industry.