Zillow has announced a significant policy update that will bar certain home listings from appearing on its platform a move that directly impacts brokerage models like Compass’s 3-Phased Marketing Strategy, which leans heavily on private exclusives.

This change, effective May 28, aims to increase transparency for homebuyers by ensuring that listings are accessible via the Multiple Listing Service (MLS) rather than being restricted to off-market channels. The decision stems from Zillow’s internal data, which shows that homes marketed privately tend to sell for less and reach fewer potential buyers.

Compass’s Strategy Faces Scrutiny

Compass recently rolled out a revised disclosure form for home sellers participating in its proprietary 3-phased marketing model. The strategy, which begins with a private exclusive listing, followed by a “coming soon” phase, and ends with MLS exposure, is pitched as offering sellers control, privacy, and a better-prepared market launch.

The new form now mandatory across Compass brokerages seeks to clarify the pros and cons of each phase and obtain seller sign-off before any pre-marketing begins. Compass leadership claims that homes marketed this way sell for 2.9% more than traditional listings.

However, industry experts and rival brokerages argue otherwise. Critics say that private listings reduce visibility, limit competitive bidding, and can disadvantage buyers and smaller brokerages. The lack of MLS exposure also raises concerns about fairness and potential discriminatory practices a key issue that regulators and MLS organizations are beginning to take seriously.

Zillow’s Policy Is a Turning Point

Zillow’s updated policy reflects these concerns and is designed to weed out listings that have been publicly marketed but withheld from MLS systems. It aligns with findings from other platforms like Bright MLS, which also noted no pricing advantage in pre-MLS marketing strategies.

This policy shift represents a growing trend in the real estate industry: a move away from exclusivity and toward full-market transparency. It also underscores the increasing pressure on brokerages like Compass to align their strategies with evolving consumer expectations and compliance standards.

Other Brokerages Take a Stand

eXp Realty, for example, has responded with its own seller disclosure form one that goes a step further by explicitly advising against off-MLS listings. This signals a shift among major players in favor of policies that benefit the broader market, not just a select group of sellers.

Why It Matters

For homeowners considering their selling options, understanding how off-MLS strategies affect visibility and price outcomes is crucial especially as major platforms like Zillow start to push back.

If you’re wondering how these changes might impact your home sale or want to ensure you’re getting the best exposure possible, reach out to LIST WITH ELIZABETH – Elizabeth Ann Kline at 703-829-5478. Our brokerage advocates for full transparency and equal access so you can sell smarter in today’s changing market.