Early reactions to the portal’s Zillow Preview program highlight ongoing debates over pre-marketing, private networks and listing transparency.
Zillow’s latest moves regarding upcoming listings, specifically the rollout of its new Zillow Preview program and listing features, could be another flashpoint in the industry as the residential real estate industry continues to test pre-marketing and ultimately how listings should be presented and distributed to consumers.
Industry leaders and trade groups said the move reflects a market that is already experimenting with non-MLS marketing strategies, private listing networks and gradual listing deployments. But even among those who welcome the change, questions remain about how Zillow’s approach will interact with MLS rules, agent-run listing platforms, and the industry’s broader efforts to seek transparency in how homes are sold to consumers.
National Association of Realtors
“NAR respects the right of individual brokers to make their own business decisions and does not comment on specific broker practices or business models. NAR does not have a national policy regarding coming soon status. Listing status is a matter of local discretion, and each MLS determines the status appropriate for its market. Brokers and agents who choose to participate in the MLS agree to abide by the MLS’ policies and rules designed to benefit consumers and their markets.”
“NAR values the pro-competitive and pro-consumer benefits of MLS, including broad market exposure, access to marketable properties, and equal access to the general public. We will continue to protect and advance Americans’ rights to own real estate and support consumers throughout the home buying and selling process.”
Hobie Hanna, Howard Hanna CEO
Howard “Hobie” Hannah III
“We are in a time where how a property is presented to the market is more important than ever. The first moments a home is presented can have a huge impact on pricing, interest and overall momentum.
“From our perspective, the key is not a particular platform, but rather providing sellers with thoughtful and flexible options. This includes the ability to generate early interest, gain a deeper understanding of buyer demand, and effectively position homes before full exposure to the market.”
“Any approach must align with MLS rules and support transparency across the market. We believe there is opportunity in the way listings are introduced: first by building momentum and then broadly expanding.”
Stephen Brobeck, Senior Fellow, Consumer Policy Center
Steve Brobeck | Consumer Federation of America
“Hannah’s decision to join Compass in building a private listing network is expected to be followed by other major brokerages, putting pressure on Zillow to allow pre-listing on its website.
“The willingness of many large brokerages to pre-list on Zillow helps prevent the erosion of publicly listed properties and benefits consumers. However, the fact that some listing agents receive a portion of Zillow’s buyer agent referral fees further strengthens an industry-wide referral fee system that prevents buyers from negotiating commissions.”
Chris Kelly, HomeServices of America CEO
Chris Kelly |Credit: Ebby Halliday
“I hope this is a little bit of a pulse check. I don’t think anyone can say this is definitely going to end the conversation, because it probably won’t. But I hope this gives everyone a moment to pause and really evaluate the long-term impact versus what feels like short-term gains.”
“In the short term, you might think that doing this on a percentage of your properties will give your agent or brokerage an advantage by drawing attention to one location rather than another. But it only really works as long as you’re the only one doing it. Eventually, everyone else starts doing the same for each other.”
“From a consumer perspective, that’s when things really start to break down, because now consumers have no idea how many websites they’re going to have to visit to see everything that’s for sale or not. I hope this acts as a pulse check for us all to take a breather and think about the long-term implications of how we work together in terms of listing content, and ultimately what’s best for consumers.”
Gary Keller, Executive Chairman and Co-Founder, Keller Williams
Gary Keller
“Sellers should have the opportunity to reach the widest range of potential buyers if they so choose, because it is generally beneficial to have broad exposure to homeowners.Sellers should have the opportunity to reach the widest range of potential buyers if they so choose. You should always retain your rights. Information, marketing plans, timing, viewing rules, offer management, etc. These decisions belong to the homeowner. Our job as professionals is to fully disclose and explain the options and let the seller decide.”
Anthony Lamacchia, Broker Owner and CEO of Lamacchia Realty and Crush It in Real Estate
Anthony Lamacchia
“It’s clear to me that Robert has won this battle, not just with Zillow but overall, because he’s not the only one preaching about how to sell homes without listing them on the MLS. I don’t blame Keller Williams, RE/MAX, or HomeServices for making this deal, because they want to get some answers to what Compass has been preaching with off-market sales.”
“We have had our own in-house LINKS system in place since 2018, matching buyers and sellers within our database to help buyers find homes before they are listed, and to assist the small number of sellers who wish to exit the market, especially in 2020 during COVID-19. We intend to begin promoting this system and sales method once our competitors start hoarding properties in any significant way.”
“That being said, I fundamentally believe and know that listing homes on the MLS and the open market for everyone to see is the best way for sellers to get top dollar and buyers to have access to all homes. It’s what’s best for consumers, and at La Macchia they are our North Star.”
“The reality is that as inventory continues to grow, all of these so-called pre-marketing systems become less attractive to sellers and listing agents. That will put even more pressure on agents and companies to give them maximum exposure to their listings, which will always be listed on the open market through the MLS.”
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