The Push for Private Real Estate Listings
For decades, Washington State real estate brokerage firms have operated under agreement to share all real property listings with the public and the rest of the brokerage community. They have traditionally done this through the multiple listing service. These same properties will typically also show up on popular websites like Redfin, Zillow, and Trulia, where everyone can view them online. This is known as “Clear Cooperation”, a policy that maintains that agents must put their listings on the MLS within one day of marketing the properties to the public. However, some brokerage firms have recently lobbied for private listings that allow for a certain amount of exclusivity for sellers.
Compass Real Estate leads this charge. The brokerage firm, which has a sizeable presence in Washington State, recently unveiled a new portal to bring clients in touch with professionals, and to provide advice to buyers and sellers on the mechanics and timelines involved with the purchase and sale of real property. Yet Compass has gone further, engaging in a marketing strategy where it encourages its agents to direct sellers to its private channels before going on the open market. Indeed, Compass has over five thousand “private exclusive” listings currently. Compass has argued that pre-marketing is the future, and that some twenty percent of sales in Washington State happen outside of the open market already. In other words, Compass has expressed that it is getting ahead of a curve that is already occurring and inevitable.
However, the Northwest Multiple Listing Service (NWMLS) published a response on March 28th, objecting to the entire concept of private listings. Instead, the NWMLS stated that it “strongly believes that consumers should have access to all property listings”, and that “an open, fair, transparent, and comprehensive marketplace benefits all market participants, including sellers, buyers, brokers, and appraisers.” Indeed, they went as far as to label proponents of private listings as “self-dealing.” The NWMLS has stated that it is “committed” to its position that private listings create an exclusive subset of buyers and sellers, labeling this as “fundamentally unfair.” Indeed, some other major brokerage firms like Windermere have taken the same position as the NWMLS. Its president, OB Jacobi, stated that private listings are the result of an effort to “double-end deals and boost profits”, and that Windermere remains vehemently opposed.
The NWMLS could fine brokerages like Compass for pursuing private listings, which currently, are not permitted. It has even warned Compass. At this point, however, it has not levied fines. Compass has nonetheless remained committed to its cause, going so far as to accuse Windermere and the NWMLS as colluding, labeling the NWMLS as a trade group controlled by Windermere.
As the war of words heats up, the question remains whether Washington State will see the official proliferation of private listings, and if so, what impact these private listings will have on the transparency, pricing, and overall fairness of the real estate housing market. Stay tuned for any further updates regarding this issue as it develops.
If you face issues in the purchase and/or sale of real estate, or if you are a property owner needing guidance with your real estate issues, the lawyers at Beresford Booth remain available to assist you. Beresford Booth has extensive experience with real estate issues, as discussed here. Please do not hesitate to contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.
