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A flare up in the conflict over private listings between Compass and Northwest MLS ended Thursday, but in its wake the two parties presented differing versions of what happened.
The issue began Tuesday when Northwest MLS (NWMLS) suspended Compass’ IDX feed, which is what distributes MLS data to MLS users. The move escalated what had previously been a war of words, but the feed was restored Thursday.
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In a statement to Inman Thursday, NWMLS indicated that the suspension was intentional and a response to Compass’ use of privately marketed listings — which NWMLS disallows but which are a core part of Compass’ current strategy.
“The suspension was the result of Compass’ failure to input numerous of its own listings and share those listings with other member real estate firms and their clients in accordance with Northwest MLS’s rules,” the statement indicated. “Northwest MLS offered Compass a data license for its own listings, but Compass did not respond to that offer. Compass’ brokers access to all other Northwest MLS systems remained uninterrupted.”
The statement also indicated that the conflict, at least as it pertained to the IDX feed, had been resolved.
“Northwest MLS worked with Compass on April 15th and 16th to facilitate Compass’ compliance with Northwest MLS’s rules,” the statement continued. “With Compass’ commitment that it would comply with Northwest MLS’s rules going forward, Northwest MLS reinstated the data license to Compass on April 17th.”
However, when Inman asked Compass about the resolution, the company responded by saying it had already been following the rules.
“Compass has always held itself to the highest standards and has always followed NWMLS rules,” the company said in an email to Inman Thursday evening. “When Compass listed Private Exclusives, we followed the NWMLS ruleset. The NWMLS changed its rules to block Compass clients from using Private Exclusives. Compass remains committed to giving homeowners the choices they deserve and enjoy in every other state.”
“Private Exclusives” is the term Compass uses to refer to privately marketed homes, which is the initial status given to properties moving through the brokerage’s “three-phase marketing strategy.” After going on sale as a private exclusive, homes then move on to “coming soon” status, but it is only after that in the third phase of the strategy that they go to the MLS.
The conflicting statements get at a core question in the NWMLS-Compass conflict: How is Compass doing private listings in Washington state? Inman had asked individuals on both sides of the conflict this question in a number of recent off-the-record calls. But the response was generally that supporters of Compass believed the company was in compliance with the rules while supporters of NWMLS believed the company was not.
Compass’ statement offers the brokerage’s answer to that question: The rules changed, to Compass’ disadvantage.
The company also provided Inman with PDFs showing NWMLS rules. The PDFs indicate that on March 28 — days after Reffkin first criticized NWMLS on Instagram — multiple rules having to do with non-exclusive listing agreements were changed.
The PDFs also show a number of other changes that took place on other dates, but there is no information in the document about what prompted any of the modifications. Inman has reached out to NWMLS for more information.
Whether the two versions of this saga can be reconciled remains to be seen.
But either way, the conflict has taken place against the backdrop of intense wrestling within the real estate industry over private listings. That conflict began with pressure on the National Association of Realtors over Clear Cooperation Policy — which was recently modified — and has continued in recent days with bans on private listings from Zillow and Redfin. And for the time being, the issue remains hotly contested.
