As private listings come under increasing scrutiny from brokers, portals and state legislatures, Windermere Real Estate is rolling out an optional addendum aimed at giving buyers more visibility into a home’s pre-MLS history.
The Seattle-based brokerage announced Thursday that it will make the form available free of charge to brokers and agents across the country, positioning the addendum as a practical tool for buyer agents navigating a market where some homes may be sold privately or undergo price changes and other tests before being listed on the MLS.
This form requires sellers to represent that the property has not been sold publicly or privately during the defined pre-listing period and that there has been no reduction in the asking price during that period. Sellers can accept, reject or modify the language, but Windermere says the requirement itself is intended to help buyers determine whether a home’s public listing history tells the whole story.
From a practical perspective, Windermere is trying to put the transparency argument into practice. It provides buyer agents with a format they can include in their offers, rather than simply joining a broader private listing battle.
“It’s all about transparency and consumer protection,” Lucy Wood, Windermere’s regional director for Western Washington and Oregon, told Inman. “The purpose of this form is to make it clear that these pre-market and private listings are out there, and to get buyers interested in what that means for their home.”
lucy wood
Tools for buyer agents
The addendum comes as the real estate industry continues to see the rise of private property networks, office-only listings, and other pre-marketing strategies that critics argue can fragment property data and obscure the information buyers have historically relied on when evaluating homes.
Buyers and their agents have long relied on data points such as days on market, price history, and previous marketing efforts to assess home values and develop offer strategies. But as more agents try to pre-market, some of that information may be hidden from buyers by the time the property is listed, Windermere said.
Wood said buyer agents can use the form to explain that some homes may be sold privately before they reach the MLS, leaving buyers without important context that could affect their offer strategy.
“There are days in the market that are hidden from you, and there may be price adjustments that are hidden from you,” Wood said. “So, by including this form in your offer, you are asking the seller to disclose whether the home was presold or repriced before it was listed on the MLS.”
Mr. Wood said if the seller rejects that representation, it could provide useful information to the buyer.
“If they hit it and take it out of the offer, the buyer can do what they want with it,” Wood said. “But at least they have the information that the home may have been pre-listed or pre-sold in some way, so they can be curious and ask for more information.”
Screenshot of Windermere’s newly released supplement.
Not limited to compasses
Compass, the nation’s largest brokerage by sales volume, is one of the most prominent advocates of private exclusives and premarketing strategies, arguing that they allow sellers to test prices, protect their privacy, avoid open market dates and price gouging, while having more control over how their homes are marketed. Some Compass executives have described this as a “negative insight.”
Windermere, meanwhile, has been one of the industry’s most vocal critics of private listing networks, arguing that homes should be exposed to the public market and listing information not scattered across closed platforms available only to specific agents and buyers. But Wood said Windermere’s addendum should not be read as a response to one company.
“It’s not about the compass,” Wood said. “It’s about transparency in the industry and making sure consumers know they can ask these questions and ask for more information.”
Washington’s new law raises risks
The company’s additional provisions come as Washington state’s new public sales law takes effect Thursday, putting Windermere’s home state near the center of the national debate over private listings.
The law, signed by Gov. Bob Ferguson in March, prohibits brokers from selling residential properties to a limited or exclusive group of buyers or brokers unless the properties are also sold to the general public and all other brokers. The law includes exceptions where limited marketing is reasonably necessary to protect the health or safety of the property owner or occupier.
While Washington state law does not completely ban private listings, supporters describe them as a consumer protection measure aimed at preventing brokers from using closed marketing channels while withholding listings from the broader market. Windermere OB Jacobi praised the law after it was signed, writing in an opinion piece in Inman that Washington had “drawn the line” on private listings and other states should follow suit.
Wood said the addendum reflects a similar philosophy but applies it to the transaction level in that it provides forms available to buyer agents that may surface questions regarding pre-listing activities during the offer process. Wood suggested this is also an effort to get ahead of lawmakers, regulators and courts by providing an industry-led response to transparency concerns before further regulations are imposed.
“Windermere has chosen to act proactively on this matter, rather than wait for regulatory action, which we believe is inevitable, but because of our size we have a platform and a responsibility to set standards that other companies can follow,” Wood said.
Like other brokerages that have previously “open-sourced” buyer agencies and other formats, Windermere’s addendum will be available to licensed agents and brokerages who want to use it, Wood said. The company said the form is provided as a courtesy and should not be treated as legal advice. Agents and Brokers are responsible for determining whether a form is appropriate for a particular transaction and complies with applicable laws and regulations.
More importantly for Windermere, buyers need to know whether a home’s public listing record fully reflects its marketing history before making the biggest financial decision of their lives.
“We really think this will strengthen consumer protection and bring more transparency to the industry,” Wood said.
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