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The launch of Compass One, Compass’ in-house-only listings and private exclusives platform, is raising red flags for me and many others in the real estate industry. Let’s be clear: Any brokerage that advocates for only marketing listings internally is not putting the client’s interests first, but rather it is an attempt to pad its own pockets.
Real estate is a service and information business, and by capturing information and limiting exposure, private listings minimize competition for the client. The main tenet of everything we do as real estate professionals is to serve our clients’ best interest, especially before ours. This new Compass program is antithetical to all of that.
Is it uncommon for agents to notify their brokerage’s agents first before a property hits the market? Absolutely not, as long as it’s within local association guidelines. Does it help sellers to shield their homes from the open market? Rarely.
For sellers, casting a wide net helps to ensure the greatest number of potential buyers are viewing your listings and exposes them to potentially getting the highest price from the most qualified buyers. You never know who’s watching from different parts of the country, who could be interested in a property and pay an incredible price, if you only harbor the listings internally.
At Brown Harris Stevens, we want our sellers to get the best possible offer, whether it comes from Compass or anywhere else.
If brokerages start hiding listings from the open market, what are buyers going to do? A fragmented market means less transparency. This platform is launching at a time when it’s extremely difficult to buy, especially for younger generations and first-time homebuyers.
Buyers should be able to see what’s on the market and available. We can’t get deals done without them. Keeping half of the interested party in the dark does not make the market any more efficient. It does help gate keep commissions.
I’m not alone in what private listings channels could mean for the industry — and for the public. Lisa Rice, president of the National Fair Housing Alliance in Washington, D.C., told the Mercury News: “When listings are confined to private channels, it becomes increasingly challenging to ensure compliance with fair housing laws designed to protect individuals from discrimination.”
A transparent market is good for all, not just one company.
Bess Freedman is the CEO of Brown Harris Stevens in New York City.
