- What’s Happening?
Compass, a major U.S. real estate brokerage, is advocating for a “premarket” or private listing model, where sellers’ homes are shared only with Compass agents (and their clients) for a limited time before being publicly listed via MLS and platforms like Zillow and Redfin.(turn0search0)
This challenges existing norms where homes are typically listed publicly within 24 hours under the NAR’s Clear Cooperation Policy.
- Compass’s Arguments for Premarketing
Allows greater seller control over price discovery and staging.
Offers a privacy-sensitive approach, useful for public figures, tenants, or sensitive situations.
Compass claims that 3% of its private listings eventually sell for more once they’ve been publicly listed.(turn0news24)
- Counterarguments: Risks of Private Listings
Reduced exposure may limit competitive offers, potentially lowering sale prices. A Zillow-backed study shows homes sold off MLS fetched around $5,000 less, with off-market Boston properties averaging $26,500 less.(turn0news22)
Slower sales and fragmented inventory: Bright MLS found no advantage in price or speed for private listings compared to traditional MLS listings.(turn0search0)
Equity concerns: Buyers restricted from seeing all listings may be forced to sign exclusive contracts with Compass agents—raising ethical and fairness issues.(turn0search0)
- Real-World Illustration
In San Francisco, Caitlin Bigelow first relied on Compass’s private listing. The initial offer matched her $2.1 million goal. When that fell through, she listed publicly and received three offers, closing at $2.15 million—plus an added perk: the buyer paid her agent’s full commission.(turn0search0)
- Industry Reactions & Escalating Tensions
Zillow has declared it will start banning listings that were privately marketed before being shared on their platforms, citing fairness and transparency concerns.(turn0news23)
The disagreement reflects a broader power struggle between listing platforms (Zillow, Redfin) and brokerages like Compass over market access and control.