Compass opens exclusive listings to rivals — with strings attached

In a surprising move, Compass announced Friday it will open its exclusive inventory to any real estate brokerage or multiple listing service (MLS) — marking a shift for a firm long known for promoting private listing networks.

The offer comes with strict conditions: listings must remain unaltered, with the original listing agent prominently featured and brokerages or MLSs must guarantee that agents won’t be penalized for sharing Compass listings, Inman first reported.

“There are narratives circulating that make false accusations,” a Compass spokesperson said. “By showing that we will make our exclusive inventory available to anyone who agrees not to alter or monetize the listing and keep the listing agent front and center, we reinforce what we have said all along: At Compass, we co-broke with everyone.”

Under the new policy, brokerages will reportedly gain access through a direct feed or system integration and MLSs will use a direct feed.

Compass prohibits participants from monetizing listing data — including selling leads or listing information to third parties. The company clarified that this does not apply to commissions for non-Compass buyer agents, and that it fully supports cooperating with buyer’s agents and compensating them for their role in a transaction.

“Many homeowners are unaware that their listing data fuels entire third-party businesses,” the Compass spokesperson added. “Three examples of monetization are selling buyer inquiries to third-party agents for a referral fee, advertising third-party companies on homeowners’ listings for a profit, and selling listing data to a wide range of financial institutions, including banks and hedge funds. 

“Home sale details are packaged with other public records and used to build products that banks, hedge funds, and institutional landlords use to buy or finance properties.”

Earlier this month, Compass informed local MLS and National Association of Realtors (NAR) leadership that it “does not consider the Clear Cooperation Policy (CCP) or any national NAR MLS rule impacting clients as binding,” and that it “has not and will not adhere to CCP or any national NAR MLS rule.”

“The purpose of a homeowner’s listing is to sell their home, not to generate money for MLSs and portals,” the Compass spokesperson said. “If stakeholders won’t agree to stop altering and monetizing a homeowner’s listing, they’re showing they care more about making money from the homeowners’ listings than helping homeowners sell their homes.”

On June 23, Compass filed a lawsuit 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.

Zillow says its new listings policy — which went into effect on June 30 — is enforcing CCP and ensuring transparency in the market.

“Zillow bans listings marketed outside of its platform, and CCP fines agents for sharing listings outside of their MLS platforms,” said the Compass spokesperson. “What, hopefully, Compass’ offer makes clear is that the CCP and Zillow bans are not rules against off-market listings; they are rules against sharing listings outside of their respective platforms.”