Compass has rolled out a revised disclosure form for home sellers participating in its proprietary 3-phased marketing approach. This new form, now standardized across the Compass network nationwide, aims to create greater transparency and ensure sellers understand the benefits and risks tied to each stage of the marketing strategy. Agents are required to present and obtain a seller’s signature on the document before initiating any pre-marketing efforts.

The marketing strategy itself unfolds in three phases: beginning with a private exclusive listing, followed by a “coming soon” phase, and finally transitioning to full exposure on the Multiple Listing Service (MLS). Compass emphasizes that the strategy is designed to give sellers flexibility and control over how their property is presented to the market. However, the new disclosure form also makes clear that keeping a property off the MLS comes with trade-offs.

The single-page form spans 685 words and outlines each marketing phase, allowing sellers to authorize them individually. It also provides an option for sellers to bypass Compass’s phased approach entirely and proceed straight to a public MLS listing. The document highlights Compass’s adherence to the National Association of Realtors’ (NAR) March announcement regarding the Multiple Listing Options for Sellers policy. Under this framework, delayed marketing timelines are determined by regional MLS boards. In markets like California’s CRMLS, however, the policy has been effectively neutralized, with the delayed marketing window set to zero days.

A key selling point of delayed marketing, as emphasized in the disclosure, is that it prevents a listing from accumulating “days on market” and avoids the visibility of price changes. These are data points Compass executives often describe as “negative insights” that can potentially impact a home’s perceived value. Additional benefits cited include giving sellers more time to prepare their property for public viewing and maintaining privacy until they are ready for full exposure.

Despite these positives, the form openly acknowledges the downsides of private exclusives. Sellers are informed that by not listing on the MLS immediately, their property will not be broadcasted to other brokerages or public platforms. This, Compass admits, can limit the number of prospective buyers who discover the property, reduce the likelihood of multiple offers, and ultimately result in a lower sale price.

To counterbalance those risks, Compass notes that sellers maintain the right to list on the MLS at any point in the process and are not bound to accept any offers while their home remains off-MLS. In an announcement to Real Estate News, Compass reiterated its full compliance with federal, state, and local Fair Housing laws and stated that the new disclosure reflects a commitment to marketing strategies that meet all legal requirements.

Robert Reffkin, Compass CEO, framed the updated form as a move toward greater industry clarity. “We continue to advocate for homeowners’ right to choose how, when, and where their home is marketed,” Reffkin said. He added that the enhanced form supports transparency and professionalism, giving clients a clear understanding of Compass’s 3-Phased Marketing Strategy and the reasoning behind withholding MLS exposure during the initial two phases.

The 3-phased strategy was originally announced in November, followed by the February launch of a new client portal designed to support it. Central to the strategy is Compass Private Exclusives, which currently includes nearly 7,000 listings across the country. Company leadership has claimed that homes following this phased rollout sell for 2.9% more than those listed directly on the MLS from day one.

Still, not everyone is convinced. Critics have raised concerns that private listings create an uneven playing field. By limiting access to available homes, private exclusives may disadvantage buyers and smaller brokerages, while potentially enabling discriminatory practices.

Zillow has weighed in, sharing internal data suggesting that homes not listed on the MLS tend to sell for less. Bright MLS similarly found that pre-marketing yields no cost advantage for sellers. Responding to these findings, Zillow implemented a policy on May 28 barring listings from its platform if they’ve been publicly marketed but not posted on an MLS.

In a related move, brokerage eXp introduced its own version of a seller disclosure form in April. Unlike Compass’s more neutral document, eXp’s form directly advises against off-MLS listings, aligning with its public stance in favor of full-market transparency.

The ongoing industry debate over private listings highlights a fundamental tension between seller flexibility and market equality. Compass’s latest disclosure aims to strike a balance, offering sellers the option to control their marketing while clearly stating the risks involved.

For homeowners exploring how to sell smartly in today’s shifting market, understanding these dynamics is crucial. If you have any questions or need help navigating your real estate options, contact LIST WITH ELIZABETH – Elizabeth Ann Kline at 703-829-5478.