T
he battle over real estate listings is escalating, with homebuyers caught in the middle. Jennifer Knoll, a Washington, DC-area agent, received multiple warnings from Zillow for not sharing her clients' listings quickly enough on its search portal. The company threatened to ban her clients' listings if she didn't comply.
At stake is who gets to see houses for sale in America and where buyers will find those listings. Compass, the nation's largest real estate brokerage by sales volume, argues that sellers should have more control over their listings. Zillow, on the other hand, claims that most home listings should be available as widely as possible.
Compass has sued Zillow in federal court, accusing it of violating antitrust laws with its policy to ban certain listings. The company's CEO, Robert Reffkin, argues that sellers should have a choice over where they advertise their homes and that Zillow is trying to force them into advertising on its website. Zillow counters that its policy ensures transparency and equal opportunity for all.
The dispute began when Compass started marketing homes on its own website before sharing them with the MLS and other search portals like Zillow. This practice, known as "hidden" listings, technically violates the National Association of Realtors' clear cooperation policy. The NAR has since punted on the issue, leaving Zillow to enforce a ban on non-compliant listings.
Compass argues that its approach allows sellers to test prices and gauge interest before sharing their homes more widely. Zillow claims that this practice undermines fairness and transparency in the market. The company will start banning listings that don't adhere to the clear cooperation policy on June 30, with agents getting two warnings before being hit with a ban.
The situation is complex, with Compass' lawsuit against Zillow at its center. While Zillow's policy may seem like an attempt to snuff out hidden home listings, it could actually push more properties into the shadows. Buyers and sellers are stuck in the middle, risking inadvertently passing over their dream home or being tied to an agent who can show them only a fraction of the market.
The debate highlights the tension between Compass' approach and Zillow's policy. While Compass argues that its model is beneficial for sellers, Zillow claims it undermines fairness and transparency. The outcome will have significant implications for the real estate industry, with smaller brokerages potentially being disadvantaged by Zillow's policy.
Ultimately, the dispute raises questions about who gets to control access to home listings in America and where buyers will find those listings. As the battle between Compass and Zillow continues, everyday consumers can't afford to ignore it any longer.
