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Recent events surrounding private listing networks and the National Association of Realtors’ Clear Cooperation Policy (CCP) have made one thing clear to me: NAR needs to get out of the multiple listing service (MLS) business. That may sound bold — and it’s probably not a position the organization will welcome — but I believe much of the mess we’ve experienced in recent months could have been avoided if MLSs had the power to govern their own rules.

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Over 90 percent of the Multiple Listing Services around the country are Realtor-owned and operated and must follow overarching policies and rules set by NAR, such as CCP. By contrast, the Northwest Multiple Listing Service (NWMLS), which covers most of Washington State and parts of Oregon, is a broker-owned, not-for-profit organization that operates independently from NAR.

OB Jacobi

Its policies and rules are developed by committees, task forces and experts and reviewed by elected board members for the benefit of its 30,000+ members and their clients. And it is for this reason that the NWMLS was one of the only MLSs in the country not included in the NAR antitrust lawsuit or settlements.

The fallout of these lawsuits and the confusion NAR caused by modifying CCP earlier this year calls into question their fitness to dictate MLS rules. MLSs have become too complex for them all to have blanket rules, and they should be trusted to figure out what’s best for their memberships and their communities.

MLSs are too important to leave them under NAR’s control

This isn’t meant to be a bash on NAR — I genuinely believe they provide a great deal of value to our industry. But they should focus on their strengths: education, research, member benefits and, especially, advocacy. The value of NAR’s lobbying efforts in Washington, D.C., cannot be overstated.

But MLSs are just too important to the health of our industry — and to the homebuying and selling process — to keep them under NAR’s control. The more NAR tries to jerry-rig the MLS process, the more confusion they cause. And that confusion opens the door to anti-MLS brokerages pushing private listing networks that could set our industry back decades. Not to mention the lawsuits that follow when they don’t get their way.

NAR, I really do appreciate everything you do for our industry. But when it comes to managing MLS rules and policies, it’s time to relinquish control and focus on what you do best. That shift would be a true win-win for everyone.

OB Jacobi is the co-president of Windermere Real Estate.

Real estate is changing fast, and so must you. Inman Connect San Diego is where you turn uncertainty into strategy — with real talk, real tools and the connections that matter. If you’re serious about staying ahead of the game, this is where you need to be. Register now!

Compass asked a court to temporarily block Zillow’s ban on publicly marketed private listings on Friday, the final business day before the ban is set to take effect. 

The nation’s largest brokerage by volume is on the verge of potentially seeing thousands of its listings go dark on the nation’s largest real estate search portal unless the judge agrees to at least temporarily pause the ban while Compass makes its case in court.

Compass filed a motion for a preliminary injunction that, if granted, would allow the company to continue privately marketing listings on its own site and still have them end up on Zillow. If the motion is denied, Compass would be forced to decide between pausing one of its key business efforts or see if its clients are comfortable with listings that aren’t shown on Zillow.

“Zillow owns the dominant home search platform in the United States. Compass…seeks to dent this dominance through an innovative selling approach and cutting-edge technological tools,” the company wrote in its filing. “Zillow has taken notice. But instead of meeting this competitive threat with a better product or increased investments, Zillow and its market rivals have conspired to strangle Compass’s market innovations.”

Nearly half of Compass’ listings (48.2 percent) started in what the company calls its 3-Phased Marketing Strategy (3PS), which involves a period when the listing is marketed privately on Compass’ own site and not on the relevant multiple listing service.

The brokerage says its 3PS strategy allows sellers to generate early interest and gain insights about pricing and the house itself without the listing accruing a history of days on market and potential price changes. Most listings that start with private marketing ultimately (94 percent) end up on the MLS and therefore on Zillow.

In addition to what the company says are benefits to its agents and clients, the strategy is an attempt to differentiate Compass from Zillow as a place for consumers to look for listings. 

It filed its antitrust lawsuit against Zillow on Monday in U.S. District Court in the Southern District of New York. Judge Jeannette A. Vargas isn’t expected to rule on the request for an injunction until later this summer or early fall.

In the meantime, Compass CEO Robert Reffkin said that come Monday, consumers should look for listings anywhere other than Zillow.

Robert Reffkin at Inman Connect New York.

“Starting June 30, buyers should know that Zillow no longer displays all MLS listings,” Reffkin said in a statement shared with Inman. “Buyers should search elsewhere or contact a real estate professional who will be able to show them what Zillow does not have.”

While the lawsuit and statement both focus on Zillow, Redfin has also enacted a ban that is similar to Zillow’s.

In its request to temporarily block the Zillow ban, Compass shared new details about an April conversation between Reffkin and Redfin CEO Glenn Kelman just hours after Zillow announced its new policy. 

Kelman told Reffkin “that Redfin had agreed to adopt virtually the same policy as the Zillow Ban,” Compass said. “During that call, Redfin’s CEO acknowledged that the Zillow Ban would harm Compass, but pushed Compass to negotiate with Zillow, implying that Zillow and Redfin could find a way to negate that harm if Compass did not fight the new rules. Compass refused.”

Redfin didn’t immediately respond to a request for comment or to verify the allegations about a call between Kelman and Reffkin.

Compass didn’t name Redfin as a defendant in the lawsuit. But it alleged that Redfin and eXp, the nation’s largest brokerage by transactions, conspired with Zillow when enacting or agreeing to comply with Zillow’s policy.

Zillow CEO Jeremy Wacksman speaks at Inman Connect.

Zillow didn’t directly comment on the new legal filing. It has said that it would “vigorously defend” itself from the lawsuit.

“Hiding listings creates a fragmented market, limits consumer choice and creates barriers to homeownership, which is bad for buyers, sellers, and the industry at large, especially in this inventory and affordability-constrained environment,” a Zillow spokesperson said in a statement.

“Our listing access standards are designed to ensure transparency, equal opportunity, and broad visibility for everyone so sellers can maximize price and time to sell and so buyers have access to all available inventory,” the company said.

Compass attorneys are hoping to receive from Zillow any communication between Zillow, Redfin, eXp and other brokerages, along with unspecified documents about what it calls the Zillow Ban, documents outlining Zillow’s interactions with certain MLSs, and more.

It also wants data about Zillow’s users and traffic, and documents related to competition in the real estate portal market.

Email Taylor Anderson