Zillow said on its website Thursday that a property will not be shown on the site if it is advertised directly to buyers without being on the MLS and made widely available in places where buyers look for homes.
After the National Association of Realtors announced a new rule meant to end an industry fight over a policy meant to cut down on "pocket" or "off-market" listings that aren't open to the public, Zillow made its choice. That rule lets sellers decide if they want to wait to start advertising their homes widely online. However, agents are still required to put homes on multiple listing services (MLS) within one day of starting public marketing.
When Zillow's new rules go into effect next month, they will focus on homes that didn't get much public exposure, like Instagram posts or being listed as "exclusive inventory" on a single brokerage's website but not on the MLS. “For the life of the listing,” the company said in a separate statement, those homes would not be allowed to be put on its website again.
The requirement for MLS listings, which is called the "Clear Cooperation Policy," has caused a lot of heated discussion in the real estate business for a long time. Supporters of fair housing and real estate websites like Zillow (Z) and Redfin (RDFN) have backed the policy, saying it makes things clearer and helps buyers get more money for their homes. But some agents and brokerage executives are against the strict listing rule, saying it limits the choices sellers have.
A lot of people who are selling their homes want to get them seen by as many people as possible. But some buyers, especially in high-end markets, look for off-market listings to keep their listings private or test their listing prices without everyone being able to see when they lower the price or how long the listing is up for sale.
Compass is a brokerage that advertises having access to off-market listings. Their CEO, Robert Reffkin, was against Clear Cooperation. They suggest that sellers use a "3 Phased Marketing Strategy" that first makes a property available only to Compass agents, then posts it on their website as "Coming Soon," and finally puts it on the MLS and other listing services.
Zillow's new rules say that a property can't be listed on the site if it is marketed to buyers for a long time without being listed in the multiple listing service (MLS).
Hersey Group always follows the NAR and MLS rules. Let them sell your home or help you purchase locally!
