You Won't Believe What Happened in the Controversial Private Listings Courtroom Showdown!

In the dynamic landscape of American real estate, 2025 is shaping up to be a pivotal year as internal disputes over private listings escalate among key players. The real estate industry, already grappling with significant changes, is witnessing a heated debate as influential leaders clash over the future of property exposure and market transparency.

On March 25, the National Association of Realtors (NAR) made a significant announcement regarding its Clear Cooperation Policy (CCP), a rule that was introduced in 2020 to restrict 'pocket listings'—properties marketed privately without being listed on the Multiple Listing Service (MLS). This policy mandated that agents must enter their listings into the MLS within a business day of marketing a property publicly. After extensive discussions within the brokerage community, NAR rolled out a complementary policy allowing agents to pre-market homes for a limited timeframe.

However, some brokerages and tech firms were already ahead of the curve. Notably, Compass, which is the largest brokerage by sales volume in the United States, had launched a three-phased marketing strategy late in 2024. This strategy promotes the option for sellers to list their homes as Private Exclusives before making them publicly available. According to Compass, this approach benefits sellers by allowing them to gauge market interest without the drawbacks of public exposure, such as extended time on the market or price reductions.

The response from the industry has been polarized. Critics argue that the shift towards a more private listing culture could undermine the integrity of housing data and foster inequalities, leading to a fractured real estate market reminiscent of a "caste system." Leo Pareja, CEO of eXp Realty, raised alarms about the ethical and potential legal implications of exclusive listings. He suggested that his company, alongside its 83,000 agents, might gain from a competitive inventory landscape. Similarly, Ryan Schneider, CEO of Anywhere, expressed concerns about the long-term viability of such a shift, despite acknowledging that his firm could benefit from it.

In a counterpoint, Compass maintains that its pre-marketing tactics are driven by consumer demand, asserting that homeowners desire more control over how their properties are listed. Yet, this strategy has generated internal divisions within Compass itself, reflecting a broader discord within the industry.

Among the loudest opponents of private listings is Zillow, the leading home search platform. Zillow has actively campaigned against private listings through media messaging, research reports highlighting the downsides of off-market listings, and efforts to influence legislation to formalize a CCP-like regulation in states like Illinois. In April, Zillow announced stringent new listing standards that effectively barred properties that had been marketed publicly but not disseminated through the MLS or IDX feeds. Zillow argued that this move aimed to maintain an equitable market where listings could be freely exchanged among cooperating agents.

This announcement ignited backlash, notably from CoStar CEO Andy Florance, who vowed that agent listings would still be visible on CoStar's platform, Homes.com. Florance even offered to promote listings that were excluded from Zillow, intensifying the competitive landscape between the two companies. In response, Compass filed a lawsuit against Zillow in June, accusing the tech giant of monopolistic practices that disadvantage homeowners and their agents who market their properties elsewhere.

As the industry grapples with these developments, the potential for power consolidation is a critical concern. Should a major player like Compass, especially in light of its planned acquisition of Anywhere, succeed in pushing the private listings agenda further, the ramifications could be profound. Consumer advocate Stephen Brobeck, a senior fellow at the Consumer Policy Center, warned that this could lead to a real estate environment dominated by a handful of large firms, akin to the commercial real estate sector.

"Once this starts, it’s like World War I—you’ve got to line up and then all of a sudden, you’ve got six big brokers who are doing it," Brobeck cautioned. He emphasized that consumers would be hesitant to engage with agents who only have access to a fraction of the market. If market power becomes concentrated, reversing such a trend could prove exceedingly difficult.

The unfolding drama around private listings speaks to broader themes of accessibility, fairness, and the future of real estate in America. As debates continue and stakeholders vie for influence, the stakes for consumers and market integrity remain high.