The debate over private listings in real estate has intensified following the $1.6 billion merger between Compass and Anywhere Real Estate. This deal has given Compass, a major proponent of private listings, the scale to challenge multiple listing services (MLSs) and portals like Zillow. At the heart of the conflict is a fundamental disagreement over how homes should be marketed and who should control the rules.
Compass CEO Robert Reffkin advocates for "seller choice," arguing that homeowners should decide how and when their properties are marketed without third-party interference. He contends that MLSs and listing aggregators profit from agent-supplied content and that agents should have greater control over listing distribution. On the other side, Zillow CEO Jeremy Wacksman insists that keeping listings within private brokerage networks limits buyer access and obscures critical information such as days on market. He believes private listings harm consumers, including sellers who need maximum exposure to achieve the best price.
After Compass introduced a three-phase marketing plan that initially lists homes as private exclusives, Zillow updated its rules to require brokers to upload listings to the MLS within a day of public marketing or risk losing the ability to add the listing to Zillow later. This policy change escalated the debate, leading to public disputes and litigation.
Wacksman argues that Zillow's rules aim to maintain market transparency. Without advertising listings outside internal databases, buyers and agents lack a full view of available inventory, which could skew market data. However, Wacksman often omits that Zillow profits from buyer leads generated from agent listings. When a buyer connects with an agent on Zillow, they may be directed to a Preferred or Premier agent who is not connected to the listing. If the deal closes, the agent gives Zillow a cut of their commission. Many MLSs automatically syndicate listings to Zillow, so agents have little choice but to have them appear there. Reffkin and others have criticized this model, and some homebuyers sued Zillow over allegations of being unknowingly diverted to program agents, resulting in higher fees and home prices. A federal judge dismissed the suit in July.
Reffkin's "seller choice" argument excludes buyers from the equation. The more sellers opt for private networks, the fewer homes buyers will find on familiar platforms. Reffkin aims to make Compass and its subsidiary brands primary home search destinations, giving the company control over its data. However, this could mean buyers won't access all listings without hiring a Compass agent. Compass and its brands are already incentivizing agents to remove listings from Zillow's subsidiary Streeteasy in New York City. Sellers tend to follow their agents' advice.
Bess Freedman, CEO of Brown Harris Stevens, and other critics argue that Compass's strategy aims to allow its agents to double-end more deals. If Compass agents encourage clients to list as private exclusives and buyers feel compelled to hire a Compass agent to see inventory, a Compass agent could represent both sides. Freedman opposes private listings citing consumer implications, but the change also threatens her midsize brokerage, which relies on industry cooperation. With fewer agents, BHS lacks enough exclusive inventory to keep buyers on its platform. Freedman's stance may be about consumer transparency, but it's also about her brokerage's survival.
Pam Liebman, CEO of Corcoran, notes that Compass and its brands display "Coming Soon" listings on their websites and Redfin. In New York, Liebman and Reffkin encourage agents to upload listings to the Real Estate Board of New York's residential listing service and mark them as "Participant Only," visible to agents from any firm but not disseminated outside the RLS. In the Midwest, Midwest Real Estate Data displays Compass's private listings network, allowing broader access.
