In a notable shift within the U.S. real estate market, thousands of agents received an unexpected email from Andy Florance, CEO of Costar Group and Homes.com, criticizing new rules announced by Zillow. These rules threaten to ban listings that aren’t shared publicly across multiple platforms, affecting agents who have been keeping “exclusive inventory” of homes off public search sites like Zillow and Realtor.com. This practice has become popular among agents, especially those from larger brokerages like Compass, who often prefer to showcase homes internally before a public release.
Zillow’s announcement aims to enhance transparency in real estate transactions, arguing that fragmented listings create frustration for consumers. Florance condemned this move as a blatant power play, warning that it forces agents to decide between sharing listings or facing the risk of having them blacklisted. While many agents typically enter homes into Multiple Listing Services (MLS), some are exploring private options to keep listings internal, which can lead to potential conflicts over market access.
The situation is compounded by pressure on real estate sales, agent commissions, and changing market dynamics. Zillow’s stance has garnered support from companies like Exp Realty and Nexthome, as well as advocacy from consumer organizations. However, critics argue that Zillow’s policies might inadvertently drive more listings underground, as agents seek to retain competitive advantages.
As emotions flare in this contentious landscape, the confusion could lead to increased scrutiny from regulatory bodies, with some industry leaders fearing government intervention could disrupt the market further. The overall battle highlights the ongoing tension between maintaining exclusive control over listings and promoting consumer access to transparent real estate information.
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