Zillow and eXp Realty Join Forces to Tackle Delayed Marketing Listings
In a bold move to enhance transparency in the real estate market, Zillow and eXp Realty have partnered to combat the growing trend of delayed marketing listings. With this collaboration, they aim to ensure that every property listed for sale is openly marketed to potential buyers, leading to a more equitable marketplace for both sellers and buyers.
Understanding the New Marketing Regulations
According to the latest release from Zillow, any property that is publicly marketed must be registered in a Multiple Listing Service (MLS). This listing must also be made available on Zillow and other websites that utilize Internet Data Exchange (IDX) feeds. But what does "public marketing" actually mean? Errol Samuelson, Zillow’s Chief Industry Development Officer, clarifies that it includes everything from yard signs to listings posted on social media and broker websites (source).
The Implications of Delayed Marketing
Under the National Association of Realtors (NAR) new Multiple Listing Options for Sellers policy, sellers now have the option to keep their listings out of IDX feeds for a limited time. This “delayed marketing” strategy allows sellers to market their property however they choose while circumventing broader exposure on platforms like Zillow or Homes.com.
Samuelson emphasizes the potential downside of this approach: “If a brokerage holds listings back, they’re only sharing those properties with buyers who work with them. We think that’s detrimental to sellers, buyers, and the market.”
The Vision for Transparency
The collaboration between Zillow and eXp Realty is rooted in a shared vision to preserve the integrity of the North American MLS system while promoting market transparency. In the words of eXp’s Pareja, “If we continue down this path of non-cooperation among industry players, we risk segmenting the system, leaving sellers without maximum exposure and buyers without access to essential market data.”
A Glimpse into Global Markets
Pareja’s insights reflect his experience managing a brokerage across 23 international markets. He notes, “In France, an agent would need to check multiple sites to access just 70% of available properties, which is a cumbersome and inefficient process.” This experience reinforces the importance of cooperation and comprehensive data access in real estate.
Implementation Timeline and Future Outlook
Zillow’s new policy is slated to take effect in May 2025, affecting both Zillow and its subsidiary Trulia. Under this policy, listings that are publicly marketed but not accessible through IDX will be excluded from Zillow’s displays throughout the listing’s lifespan. However, should a listing not sell and later switch to a new agent from another brokerage without employing a delayed marketing strategy, it may still be showcased on Zillow.
Zillow and eXp hope that their commitment to these standards will inspire other brokerages to follow suit. Samuelson adds, “We believe that most brokers understand the value of equitable MLS listings for both sellers and buyers and will join us in supporting this policy.”
Commitment to Ethical Practices
At eXp, Pareja contends that this initiative aligns with their philosophy to improve offerings for U.S. consumers. “Our goal is to foster an environment where real estate professionals compete on service and value, not on tactics that hoard inventory and mislead customers," he asserts. While acknowledging the legitimate reasons some sellers may have for requesting a private listing, he argues against practices that limit market exposure.
With the rise of delayed marketing listings sparking conversation around real estate’s future, industry experts are paying close attention. Although users have raised concerns that these practices could threaten platforms like Zillow, the current NAR policy allows delayed listings to be displayed on Virtual Office Websites (VOW). Given Zillow’s status as a registered brokerage, it maintains access to these listings, albeit under stringent guidelines.
Industry Response
This announcement comes amidst ongoing debates within the industry. Compass, under CEO Robert Reffkin, has emerged as a vocal critic of such practices, challenging them publicly (source). Compounding the issue, Compass has aligned itself with Northwest MLS, a non-Realtor organization creating its own Clear Cooperation Policy, limiting agents from withholding listings from the MLS.
As tensions rise, Compass has acted aggressively, even backing efforts for a class action lawsuit against NWMLS based on claims of seller harm due to their policies.
A Call for Collective Action
Forward-looking, the outcomes of Zillow’s new policy will undoubtably have rippling effects across the real estate landscape. With over 22,000 new listings on its platform according to Reffkin, how will Compass and other industry players respond? As the landscape evolves, one thing remains clear: the real estate community must work together to ensure that transparency and cooperation take precedence over exclusivity, enabling all stakeholders to benefit from a truly open market.
By engaging with these changes now, both buyers and sellers can look forward to a more connected and prosperous real estate future.
