realestate

Zillow's listings ban takes effect: key details revealed

Zillow may remove off-market listings from its site, sparking a lawsuit and mixed reactions.

A
s of June 30, Zillow will begin enforcing its ban on listings that are publicly marketed but not widely available to consumers. This move has sparked a lawsuit from Compass and praise from others. Here's what you need to know:

    Zillow's ban applies to non-compliant listings, not homes themselves. Listings deemed out of compliance will be blocked from Zillow.com and Trulia.com, but an address can still appear on the sites if presented in a new listing that follows the rules.

    Agents with non-compliant listings were notified on May 28, but won't face consequences immediately. Starting June 30, agents' third non-compliant listing and any subsequent ones will be blocked for the life of the listing agreement between the broker and seller.

    Compass has filed suit against Zillow, claiming it's abusing its monopoly power to ban homeowners and their agents for marketing homes elsewhere. A survey by Compass found that 90% of homeowners believe sellers should have the option to pre-market their home, while 59% would prefer to work with an agent who can offer this service.

    Industry leaders are weighing in on the issue, including eXp CEO Glenn Sanford, who argues that a private marketplace system stifles innovation and prevents companies like his from existing. Redfin's ban is set to begin in September, and by Sept. 30, MLSs must implement the National Association of Realtors' delayed listings add-on to the Clear Cooperation Policy.

    StreetEasy is embracing a modified version of this policy, which will limit agents' access to certain tools. The Compass-Zillow lawsuit may take years to resolve, but listing bans similar to Zillow's are set to take effect in the coming months.

Zillow listings ban takes effect, key details and implications revealed nationwide.