Zillow stands firm on opposition to private listing networks
President Susan Daimler reiterated the company's support for the Clear Cooperation Policy, and called private networks "terrible" for consumers and agents.
Key points:
- "It's pretty hard to be pro-PLN and pro-consumer," Daimler said, noting that scrapping Clear Cooperation could allow private networks to take over.
- She said Zillow understands that some sellers have privacy concerns and don't want their homes publicly listed, but argues that "rhetoric out there" overplays the need for off-MLS listings.
- While the company strongly supports the fundamentals of the CCP, Zillow would like to see some changes to NAR policies, including the elimination of its "no co-mingling" rule.
Home search giant Zillow is becoming increasingly vocal about its stance on NAR's Clear Cooperation Policy and the potential for private listing networks (PLNs) to edge existing MLSs — and real estate portals — out of the way with pocket listings.
In a conversation with Real Estate News, Zillow President Susan Daimler reaffirmed the company's support of the Clear Cooperation Policy — which requires all publicly marketed homes to be listed on the MLS — but also elaborated on the changes the Seattle-based home search leader would like to see.
Private listing networks 'disadvantage everyone'
As Clear Cooperation Policy detractors continue to make their pitch — and a pocket listings lawsuit returns with renewed vigor — Zillow is making its position clear: A world without the CCP would have negative consequences all around.
"We feel like these private listing networks are terrible for both consumers and for agents," Daimler said, echoing the views of some other industry leaders.
"It's anti-transparency. It's basically going back in time to a place where buyers can't see everything and sellers are greatly disadvantaged when they're trying to sell their homes," Daimler added, emphasizing that PLNs not only affect buyers, but "disadvantage everyone across the board."
What about pocket listings?
When asked if sellers who want privacy should be allowed to keep their homes off the MLS and portals, Daimler noted that the existing MLS structure is already equipped to handle those cases.
"The MLSs have a little box that you can check and say, I don't want this listing going out to everywhere, but I do want to make sure that all the agents can see it, so your neighbors can't see it," Daimler said.
The "rhetoric out there" about the need for pocket listings is "overblowing the amount of people who require this type of privacy," she added.
NAR should allow co-mingling of listings
While Zillow believes in the fundamentals of the CCP, Daimler said the company does support two important changes: a modification to remove the "office exclusive" loophole, which Zillow has previously advocated for, and allowing co-mingling of MLS and non-MLS listings — something NAR rules currently prohibit.
These changes would provide greater transparency and make it easier for consumers to see all available inventory, Daimler said.
"On a portal like Zillow, we've been forced to make a two-tab experience — it really limits what the buyer is seeing. They're looking at tab one and they think that's everything, but they're actually missing out on new construction and FSBO, and they're not seeing it all," Daimler explained.
"So we are huge advocates for getting rid of the no co-mingling rule. We think that buyers should see everything together and understand what all their choices are."
Zillow isn't the only company to come out against the rule. Anywhere recently asked NAR to remove restrictions on co-mingling, and the policy was the basis of a lawsuit filed by discount brokerage REX that has caught the attention of the Department of Justice.
CCP detractors are 'misguided'
While industry leaders who want to see the Clear Cooperation Policy repealed say they're looking out for the best interests of consumers and agents, Daimler suggested that their motives are more self-serving.
"They are misguided, yes, and there's no data from them," she explained. "They have an invested interest in some of these private listing networks. And we can also talk about dual agency where they benefit from having the same agent or the same brokerage be on the sell and buy side."
Ultimately, Daimler argues, sharing listings to the MLSs results in maximum exposure, a higher sale price and greater transparency. She warned that if the CCP goes away, "all brokerages" will focus on their individual private listing networks and effectively operate from a protectionist approach.
"It's pretty hard to be pro-PLN and pro-consumer. It's hard to be against co-mingling and pro-consumer — these are just logical things that help sellers and buyers."