E
rrol Samuelson, Zillow Group's chief industry development officer, believes that consumers and agents are being misled about private listings. He thinks big brokerages would gain a short-lived competitive advantage if they push for more listings in their private networks.

    Zillow advocates for an "open, transparent marketplace" where any buyer can see any listing. Samuelson said Zillow will adjust its strategy if private listing networks take off, but getting into the brokerage business is not part of their plan.

    Samuelson questioned claims that sellers are pushing for private listings: "Show me the consumer data." He thinks sellers need to carefully consider whether holding a listing off MLS is in their best interest. This can lead to buyers missing out on potential deals and driving up prices due to reduced inventory.

    Zillow's CEO has been vocal in his support of Clear Cooperation, which requires agents to add listings to the MLS within 24 hours of publicly marketing them. Samuelson thinks this policy promotes transparency and prevents sellers from leaving money on the table by selling off-market.

    Some leaders suggest modifying the CCP to allow a longer window before listing on the MLS. However, Samuelson believes hiding inventory for any period is problematic, as it can lead to missed opportunities for better offers.

    If NAR repeals Clear Cooperation, Zillow will adjust its strategy. They have built a trusted consumer brand and source listings from multiple sources, including MLS feeds, franchisors, and brokers. While they may need to adapt, Samuelson emphasized that getting into the brokerage business is not part of their plan.

    A surge in private listing networks could lead to a fragmented market with multiple databases, harming buyers and agents. This dynamic can create a short-term competitive advantage for big brokerages but ultimately leads to consolidation and reduced competition, which is bad for consumers.

    Samuelson also questioned claims that sellers are asking for private networks, citing Zillow data showing most consumers don't understand the difference between selling in a multiple listing service versus a private network. He challenged leaders to provide consumer data supporting these claims.