I have always advocated that homeowners should have transparent choices about how their homes are marketed. Sellers need to understand the pros and cons of full versus limited exposure to the market, and disclosures should not be a marketing pitch. They need to inform consent rather than manufacture it.
Compass, Redfin, and Rocket partnership
One recent development is particularly noteworthy. Compass recently announced a three-year agreement to have its “off-market” listing on Redfin. This announcement may signal something important for our industry.
The idea of keeping a large private listing becomes even more difficult when properties listed for sale as “off market” start showing up on one of the nation’s largest home search platforms. Once a list is widely available to the public, it is essentially no longer truly private.
At that point, the conversation is no longer about private listings. It’s about how the list is distributed.
The bottom line is that real estate markets work best when homes are easy to find and buyers are free to compete. For sellers, this is especially true. This is because a property cannot achieve its true market value unless the entire market recognizes it. The frictions introduced into public markets are not intended to provide the best opportunities for buyers and sellers. The market itself also seems to be reaffirming the simple truth that exposure matters.
This principle has guided the housing market for decades.
debunk misconceptions
In my nearly 50 years as a real estate agent, one thing has always remained constant. The housing market works best when information flows freely and consumers are able to make informed decisions.
One of the misconceptions driving debate today is that a special “private listing” strategy is required for sellers to control how their home is sold.
it’s not.
While we recognize that the MLS is an imperfect instrument and that failure to fairly and consistently enforce its rules may ultimately invalidate its implementation, the MLS provides sellers with tremendous flexibility in determining how to bring their homes to market.
Seller can decide the date and time of the showing. You may only allow pre-qualified buyers to tour your home. You may request that an agent accompany you to all showings. They can decide if, when, and how they can hold an open house. You can invite your agent to view your home and provide feedback before the home goes on the market or at any time afterward. You can choose when and how you review offers. This list literally goes on and on.
In other words, sellers are already in control of their home’s marketing plan. Without changing anything about how the current MLS works, sellers can decide how to market their property within the MLS framework from start to finish. These options have been around for years and are available to all sellers.
Some companies are repackaging these long-standing practices as if they were new or proprietary strategies. They are not new or special. All professional real estate agents operating within the MLS already have the ability to help sellers pursue a full range of options and customize how they market their home.
what we believe
Keller Williams’ philosophy is simple.
We believe that open markets best serve consumers. Competition benefits home sellers, so sellers should have the opportunity to reach the widest range of potential buyers if they wish. At the same time, sellers should retain the right to set the parameters for how their home is marketed.
Information, marketing plans, timing, display rules, and offer management. Those decisions belong to the homeowner. Our job as professionals is to fully disclose and explain the options and let the seller decide.
You also need to consider the other side of the deal. Purchaser.
A healthy housing market depends on buyers having fair access to available housing. Restricted information about listings gives buyers fewer options and reduces market transparency. Ultimately, a lack of transparency works against sellers as well, as today’s sellers are tomorrow’s buyers.
Zillow’s new preview listing program
This brings us to another development worth discussing. It’s Zillow’s new Preview Listings program.
The idea behind the preview listing program is simple. A homeowner decides to sell his property and gives permission to an agent to notify the market that the home will soon be available for sale. This allows the listing agent to start generating interest from buyers.
Agents have been using variations of this approach for decades.
What makes Zillow’s program different is that they believe the market is best served by providing this opportunity to all buyers, and that doing so is good for both sellers and buyers alike.
Zillow also recognizes the important role and commitment of listing agents. During the preview listing period, the listing agent’s contact information will be displayed prominently on the site, and potential buyers can choose to connect directly with the listing agent with the click of a button.
Importantly, Zillow provides real value to listing agents whose listings generate potential buyers during the preview listing period.
It doesn’t matter.
When a professional agent invests the time, resources, and expertise necessary to bring a home to market, that relationship should be respected. Leads generated from KW.com are automatically sent to listing agents. There are no additional fees or frictions.
With these changes, Zillow respects agents, buyers, and sellers, while also respecting the rules of the MLS. For these reasons, we’ve decided to support a new preview listings program. Our franchisees and their agents may post eligible listings in the Preview Listings category on Zillow with contact information visible to consumers within the time period allowed by their local MLS.
If this approach ultimately helps sellers build interest early, helps buyers find a home faster, and respects the role of listing professionals, it’s a positive step forward. And I welcome that too.
The real estate market will continue to evolve. New ideas are born. Some succeed, others decline. However, there are some things that need to remain constant.
Consumers need transparency. Sellers have the right to choose how they want to market their home. Buyers are entitled to fair access to the entire market. A home has its true market value when the entire market can recognize it.
And that goes back to the point I made in my first editorial. This means homeowners have the right to make clear and transparent choices about how their home is sold.
Transparency breeds trust, and trust is what makes markets work.
Gary Keller is co-founder and executive chairman of Keller Williams Realty. Connect with him on Instagram or LinkedIn.
