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merica may be copying the worst part of Europe's real estate market. Brian Boero, CEO of 1000Watt, a real estate consulting firm, recently tried to buy a vacation home in Tuscany but found the process to be a nightmare. He realized that he had been spoiled by the American market, which offers a seamless and transparent way for buyers to find homes.

    In contrast, Europe's housing market is plagued by inaccurate listings, hidden properties, and a lack of transparency. Brokers often gatekeep their best listings, hiding them from average buyers. Even aggregate market data is hard to come by due to the absence of a central clearing house for listings.

    Boero's experience highlights the potential consequences of the US real estate market adopting similar practices. The feud between Zillow and Compass over "hidden listings" could result in a fracturing of the housing market, with home listings scattered across the internet or hidden away in private listing networks.

    The MLS model is considered the gold standard for real estate transparency, but it's not without its flaws. Brokers in other countries have attempted to replicate this system, but the structure in North America remains unique. The problem lies in getting brokers to agree to cooperation and enforcing rules to prevent abuse of the system.

    In Europe, sellers are often represented by multiple agents who jockey for position, creating an incentive to gatekeep listings. Search portals like Zillow's equivalents in Spain or France are more like advertising platforms than unbiased repositories of information.

    The ideal real estate marketplace is characterized by valuable, visible, and valid listings – the "three Vs." Buyers want these listings, they can find them, and the information is correct. However, in Europe, home listings often lack at least one of these qualities.

    Hollin Stafford, a real estate agent with eXp Realty in Portugal, has experienced firsthand the frustrations of navigating the European market. She notes that buyers are accustomed to having access to comprehensive data on homes for sale, which is not always available in Europe.

    The International MLS Forum will bring together real estate leaders from around the world to discuss creating systems similar to those in the US. However, the incentive for change is lacking, as big brokerages and portals have little reason to cooperate.

    The US real estate market could be headed down a similar path, with buyers facing a fragmented and less transparent market. The closest analogy is the world of video streaming, where companies build walled gardens of exclusive content, making it difficult for consumers to access all available inventory.

    Zillow has banned listings that are not shared with the platform within one business day of being marketed publicly. Compass has sued Zillow in federal court, accusing the company of using its monopoly power to quash a competing business model. The outcome will have significant implications for the real estate industry and consumers worldwide.