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The Battle Over Listing Transparency: What Real Estate Investors Need to Know
The real estate industry is currently embroiled in a significant debate over the National Association of Realtors' (NAR) Clear Cooperation Policy (CCP), which mandates that any property marketed to the public must be listed on a Multiple Listing Service (MLS) within one business day. This policy aims to ensure transparency and equal access to property listings. However, major players like Zillow and Compass are taking opposing stances, leading to a fragmented marketplace that real estate investors must navigate.
Zillow and Redfin Enforce Strict Listing Policies
Zillow has positioned itself as a staunch advocate for open access to property listings. President Susan Daimler argues that private listing networks, often called "pocket listings," harm both sellers and buyers by reducing exposure, perpetuating discrimination, and limiting competition. Zillow now requires homes marketed to any consumer to be listed on an MLS and made publicly accessible within a day.
Redfin has aligned with Zillow, banning listings not shared publicly within 24 hours of marketing activity. This unified stance by two major platforms is reshaping how listings are handled across the market.
Compass Defends Private Listings
Compass, the largest U.S. brokerage by sales volume, argues that the CCP benefits MLS systems over homeowners. CEO Robert Reffkin defends private listings, stating that sellers increasingly prefer exclusive marketing. Compass uses a three-phase approach: internal listings, Compass.com exposure, and eventual broader publication. This allows sellers more control and flexibility.
Homes.com Offers an Alternative Approach
Homes.com, owned by CoStar Group, has taken a more agent-friendly stance. CEO Andy Florance criticized Zillow's policy as a “power play” and affirmed that Homes.com supports agent autonomy and private listings without penalties, promoting a flexible model that respects seller preferences.
Implications for Real Estate Investors
• Access to Listings: Investors relying solely on MLS data may miss private opportunities. Relationships with agents become more critical than ever.
• Market Transparency: A fragmented listing environment complicates deal flow analysis. Stay informed but avoid distraction by real estate gossip.
• Regulatory Risks: Heightened scrutiny may lead to policy changes. Investors should monitor these developments to adjust marketing strategies accordingly.
Navigating the Evolving Landscape
Investors should understand the evolving dynamics among platforms like Zillow, Compass, and Homes.com. Building strong relationships with local agents and brokerages will be key to maintaining access and staying competitive in a divided listing landscape.