Where Real Estate Gets Its Dirt

Compass add new lawsuit, this time its Zillow

Compass sues Zillow over private listings policy

“Compass filed a lawsuit in New York on Monday, alleging that Zillow is breaking federal antitrust laws by permanently banning any listing that isn’t put on an MLS within a business day of being publicly marketed. 

“To protect its market dominance, Zillow has retaliated against competitive threats by enacting an exclusionary policy,” Compass argued in its lawsuit.”

Compass is already suing MLS organizations like NWMLS. Even in this industry the blustering that Reffkin is performing would put a carnival barker to shame.

All MLSs already have mechanisms to protect sellers who need confidentiality. To suggest otherwise is just false.

The real question is: does limiting exposure to a handpicked group of “right” buyers help most sellers? Maybe—if the home is ultra-unique. But for 99.9999% of listings, broad exposure is what gets results.

Remember the story of a seller using Compass’s “three-phase plan” who got her “magic number,” declined, then went public—and sold for $100K more.

Compass is selling a marketing strategy that only works in a hot market. As things cool or shift to a buyer’s market, that approach collapses.

Also worth noting: per NAR, 1 in 6 minority homebuyers reports facing discrimination. Does anyone really think keeping listings hidden improves that?

Rob Hahn calls bullshit on Compass claims

Compass and Coming Soon: Not About the Client

“If the Governing Principles to the Compass Agreement had read something like “Agent must use “Coming Soon” with those sellers who understand the pros and cons of the program, have privacy concerns, or other extenuating circumstances, first activating those listings for 5 days internally…” then there is some basis to think that maybe the policy really is about providing flexibility to the seller.

But the way the Agreement spells things out, it is crystal clear that Compass doesn’t care about the seller in the least bit. In fact, I’m not even sure that Compass cares about the fiduciary relationship between the Agent and his or her sellers. I mean, how likely is it that every single seller of a Compass agent would benefit from “Coming Soon” that is exclusive to Compass for a minimum of 10 days?”

Someone sent a copy of Compass’ Independent Contractor Agreement to Rob and its a doozie. Apparently, if I’m reading this right, a Compass agent under this agreement must put their ALL their listings in the in-house Coming Soon/Pocket Listing process or they lose their splits and perks.

For some reason “Cory” left that little nugget out of in their “pre-litigation” letter to Bright MLS.

Here’s Rob again about Compass’ claims…

“ “All of Agent’s sellers” puts the lie to the various excuses offered up that Coming Soon is really about client service. A “Coming Soon” strategy that is about the seller would never be a blanket one-size-fits-all policy, but one that makes certain that the seller is well-informed and is voluntarily choosing the strategy fully aware of the risks and rewards involved.

What a disaster.

#PutItOnTheMLS

Put it on The MLS 3

Bright MLS throws support to NAR’s 8.0 policy

‘Pocket listings,’ those secretive, off-market offerings of homes for sale, to disappear in the D.C. area

Bright MLS, the region’s multiple listing service, on Wednesday announced a policy that requires all real estate agents and brokers in its system to submit the listing within one business day of marketing the property to the public. The policy is in effect now, but fines won’t be imposed on agents who break the rule until Dec. 1. The fines for noncompliance are $5,000 for the first infraction, $7,500 for the second and $10,000 for the third instance.

Washington Post

Bright MLS did make a slight edit to NAR’s 8.0 policy, allowing for one business day, not 24 hours, which I think is smart. The WaPo article is interesting to read. I always get a kick out of how main stream news covers issues in organized real estate.

And love Jon Coile’s quote, which I first heard Dave Liniger, co-founder of RE/MAX first say back in the day; “That’s like coming to a potluck dinner with just a fork.

Overall is great to see the larger MLS provider coming out and supporting NAR’s 8.0 policy. But I don’t find many addressing what I think is a core problem, Fair Housing. Maybe its too controversial for MLS providers to talk about.

Point Counterpoint on “MLS of Choice”

“MLS of Choice” is really a poor choice of wording. I think someone at Inman News coined the phrase. It gives the wrong impression of what 7.42 and 7.43 are really all about. But lucky for us we have Tom and Stan! Tom Berge Jr., NAR’s current chairman of the Multiple Listing Issues and Polices Committee, did a great job outlining their recommendations in a video which served as a supplement to an F.A.Q. page.

As a counterpoint Stan Harke, CEO of Western Regional Information Systems & Technology, Inc., also created a video outlining their concerns over “unintended consequences” of the policy change. He makes a few good points (His “pocket listing” scenario is quite clever) if you can make it through the cheesy music.

Then there are some who believe this might be a giant conspiracy! Just don’t shoot the messenger.

Coming soon to MRIS, “coming soon” listings.

Coming Soon Listing Status is Coming Soon

“3. When you select the Coming Soon status for your listing, you’ll need to enter an Expected On-Market Date. This date can be no later than twenty-one days from when the listing is submitted to the MLS under the Coming Soon status. If the house is ready earlier than anticipated, you can change the status for your listing in Keystone.”

Coming soon listings are so yesterday, I’m waiting for “thinking about it” listings. ; )

Bell Bottom Blue Jeans

4936_vintage_california_lThere’s been a lot of talk on Zillow’s new Coming Soon feature. Hell, even Wurzer brushed off his blogging keyboard and had an opinion. Inman News characterized it as “pocket listings on steroids“.

“Agents can manually upload their coming soon homes to Zillow while brokerages and MLSs can opt in by adding a “Coming Soon” field to their current feeds or building out a separate, new feed dedicated to coming soon listings. Agents can renew a coming soon listing for up to 30 additional days.

The feature allows a listing to land on the MLS with a “ton of velocity” with buyers dreaming home-specific dreams and ready with preapproval letters from lenders, Zillow Chief Revenue Officer Greg Schwartz told Inman News.”

Meh.

While I think its a clever idea, and one that MLS providers should look at implementing, I don’t think its really going to matter in the long run. Pocket Listings are driven by low inventory. Once the market settles, and inventory comes back to normal inventory levels, pocket listings will go away like bell bottom jeans. That doesn’t mean they won’t be back again, but its hard for me to understand what all the excitement is about.

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