Changes in the Real Estate Market

Two major real estate marketplaces, Zillow and Redfin, are making significant changes to what home listings can appear on their websites. They are taking aim at listings of homes up for sale that have been publicly marketed prior to being entered into the multiple listing service (MLS), taking steps to bar them from their respective platforms.

In April, Zillow unveiled new “listing access standards” for its site. The real estate marketplace said it will not publish listings if they are “marketed directly to consumers without being listed on the MLS and made widely available where buyers search for homes” within one business day.

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The company has argued that a listing “marketed to any buyer should be marketed to every buyer” and that consumers “deserve fair access to listings without having to get access behind a velvet rope controlled by any one company.”

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Zillow’s New Policy

Zillow began sending out notifications of listings in large U.S. markets that don’t meet the new standards to agents starting in late May, with each one getting recorded as a violation. At the end of June, Zillow will bar an agent’s third noncompliant listing and any listings by the agent that violate its listing access standards from its platform as well as Trulia “for the life of the listing agreement between that listing broker and seller,” according to the company.

Its new standards are being implemented “in phases” with a national expansion taking place over the summer. Zillow said the new policy affects all listings of for-sale homes “subject to an exclusive for-sale listing agreement between a broker and a seller.”

The new listing access standards “are consistent with NAR’s Clear Cooperation Policy and reflects our belief in fair access for all,” according to the company. The Clear Cooperation Policy mandates the sharing of listings on the MLS within one business day of public marketing. The option for sellers to delay the marketing of their homes on the MLS is slated to come into force in September, the NAR announced earlier this year.

Exemptions to Zillow’s New Policy

There are, however, some exemptions to Zillow’s new listing access standards policy. The site will allow home listings that were “only shared among agents within the listing brokerage and the seller has signed a waiver or opt-out form” as well as “delayed marketing” and “coming soon” listings uploaded to the MLS.

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Additionally, listings of newly built homes marketed by their builder, rental properties, and “for sale by owner” homes will not be subject to Zillow’s new rule surrounding public marketing, the company said.

Redfin’s Stance

Fellow real estate marketplace Redfin is taking a similar stance. CEO Glenn Kelman said in a mid-April Redfin post that the platform “will not publish any listings that have been publicly marketed before being shared with all real estate websites via the MLS.”

The company is also calling for the MLS to set up a “coming-soon” designation that “precludes” search sites from displaying the amount of time a home has been on the market and their prices, according to the post. Redfin believes “all buyers should be able to see all listings,” Kelman said.

The real estate marketplace will start implementing its policy barring listings that were publicly marketed ahead of being shared on the MLS beginning in September, a Redfin spokesperson told FOX Business.

“Delayed marketing exempt listings will be displayed on Redfin as long as they’re shared in the MLS and disseminated to sites like Redfin through a Virtual Office Website (VOW) where buyers can access them,” the spokesperson added.

Impact on the Real Estate Market

Zillow and Redfin are some of the biggest online real estate marketplaces, hosting millions of listings on their sites. Zillow Group reported that its apps and sites notched 227 million average monthly unique users during the first quarter, while Redfin said its platforms saw 46 million.

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Conclusion

In conclusion, the changes made by Zillow and Redfin to their listing policies are aimed at promoting fair access to listings for all buyers. By not allowing listings that have been publicly marketed prior to being entered into the MLS, these platforms are ensuring that all buyers have an equal opportunity to view and purchase properties. These changes are expected to have a significant impact on the real estate market, and it will be interesting to see how they play out in the coming months.

Frequently Asked Questions

What are the new listing access standards implemented by Zillow?

Zillow’s new listing access standards state that the platform will not publish listings if they are “marketed directly to consumers without being listed on the MLS and made widely available where buyers search for homes” within one business day.

What are the exemptions to Zillow’s new policy?

The exemptions to Zillow’s new policy include home listings that were “only shared among agents within the listing brokerage and the seller has signed a waiver or opt-out form” as well as “delayed marketing” and “coming soon” listings uploaded to the MLS. Additionally, listings of newly built homes marketed by their builder, rental properties, and “for sale by owner” homes are exempt.

What is Redfin’s stance on listings that have been publicly marketed prior to being entered into the MLS?

Redfin will not publish any listings that have been publicly marketed before being shared with all real estate websites via the MLS. The company believes that all buyers should be able to see all listings.

When will Redfin start implementing its new policy?

Redfin will start implementing its policy barring listings that were publicly marketed ahead of being shared on the MLS beginning in September.