T
he real estate landscape is shifting, with a new battle brewing over control of listing data. At the heart of this conflict lies the consumer - specifically, home sellers seeking maximum exposure for their properties. The most effective way to achieve this is through syndication, sharing listings across multiple portals like Zillow and Redfin. However, some brokerages, such as Compass, are opting to keep their listings in-house.

    This move has sparked controversy, with critics labeling it "greedy" or a bid to "hide listings." Yet, it may be a strategic play to avoid extinction in an increasingly competitive market. The National Association of Realtors' (NAR) Clear Cooperation Policy (CCP), introduced in 2019, requires publicly marketed properties to be listed on the MLS within one business day.

    The CCP aims to promote cooperation, transparency, and fairness in the housing market. However, some brokerages feel this policy is too restrictive, limiting their ability to experiment with alternative marketing strategies. In response, NAR has updated the CCP to allow for "delayed marketing," enabling agents to market listings exclusively while still submitting them to the MLS.

    This development has significant implications for Zillow and Trulia, which rely heavily on syndicated listing data. To counter this shift, they're implementing a new rule: if a listing isn't immediately shared with the MLS and made publicly available, it won't be published on their platforms. This move is driven by concerns over the potential consequences of losing access to fresh listing data.

    Zillow has been vocal about the issue, citing studies that show privately listed homes disproportionately harm home sellers of color and result in significant lost revenue for sellers. They've partnered with large brokerages like eXp and NextHome to promote listing transparency and have rolled out their new policy to educate consumers on the importance of public listings.

    However, some argue that Zillow's motivations are rooted in self-preservation rather than a genuine concern for consumers. Without access to fresh listing data, their business model would be severely impacted, leading to a significant loss of revenue and web traffic. The real estate landscape is evolving, with new technologies like AI making it easier for buyers and sellers to go the self-serve route.

    As this trend gains momentum, Zillow and other portals may find themselves struggling to maintain relevance. Homebuyers may start seeking inventory on alternative platforms, potentially leading to a significant decline in traffic and revenue for these sites. The future of real estate listing data is uncertain, with brokerages like Compass pushing the boundaries of what's possible.

    In this new landscape, it's unclear how many sellers will opt out of sharing their listings publicly. While some may be swayed by promises of increased privacy or a quick sale, most home sellers will likely continue to prioritize maximum exposure for their properties. As the battle for control of listing data intensifies, one thing is certain: the real estate industry will never be the same again.