Zillow’s recent decision to prohibit private listings has become a focal point for discussion within the real estate community. Advocates argue that this move enhances consumer protection and fosters greater transparency in the housing market, while critics perceive it as a demonstration of Zillow’s growing influence and market control.

Overview of the New Policy

The implementation of the National Association of REALTORS®’ Clear Cooperation Policy (CCP) has led to significant changes in how real estate listings are handled. Under this policy, Multiple Listing Services (MLSs) can restrict listings from being distributed on public platforms, primarily affecting large brokerages. As a result, Zillow has introduced new standards that ban properties marketed to a limited audience from appearing on its site.

According to the new regulations, sellers must have their listings placed on the MLS within one day and subsequently published on Zillow and other affiliated platforms to ensure maximum market exposure. This directive directly challenges the conventional practices adopted by brokerages that rely on office exclusives, where listings are shared solely within a select network of agents.

Industry Perspectives

Supporters of Zillow’s Policy

James Dwiggins, CEO of NextHome, is a vocal supporter of Zillow’s recent changes. He believes that limiting listings to a narrow audience misguides sellers into thinking they have comparable market opportunities as those who choose broader exposure. “We’re very supportive of Zillow in this; they’re enforcing the rules of CCP,” Dwiggins stated, emphasizing that properties marketed exclusively must be made available to the general public.

Dwiggins dismissed concerns over seller privacy as unfounded, asserting that conventional MLS practices have always provided mechanisms to protect seller confidentiality. He argues that the real challenge lies in ensuring all homes are marketed on open platforms to eliminate potential disputes concerning fair housing violations.

Criticism from Other Industry Leaders

In contrast, Andy Florance, CEO of CoStar Group, has sharply criticized Zillow’s policy, describing it as an “incredible move of audacity.” He argues that this new approach serves more to protect Zillow’s interests—in terms of profit through leads—rather than genuinely benefiting consumers. Florance insists that agents should not feel coerced by a tech company into conforming to policies that may not serve their clients’ best interests.

Meanwhile, Leo Pareja, CEO of eXp Realty, recognizes that while privacy may be a concern for some sellers—such as law enforcement officials—these cases are quite rare. He maintains that the overwhelming majority of sellers prefer maximum market exposure, advocating for transparency as a fundamental principle in real estate.

Potential Impact on the Real Estate Landscape

The responses to Zillow’s new standards reflect a significant shift in how the real estate market may function. Supporters believe these changes will lead to increased consumer awareness and engagement, prompting agents to rethink traditional listing practices, particularly those centered on office exclusives.

Contrarily, critics warn that Zillow’s market power may lead to reduced fairness in competition among agents and brokerages. Redfin’s CEO, Glenn Kelman, supports the idea of comprehensive listings but suggests a need for a “Coming Soon” designation that allows properties to be marketed in a limited capacity without infringing on the principles established to maintain broad access to MLS listings.