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Zillow Group has finished the first week of sending non-compliance notices for listings that aren’t added to the multiple listing service (MLS) within 24 hours of being publicly marketed.
Zillow Group has taken a “three-strikes” approach in which brokers will receive warnings for their first two non-compliant listings before having their third non-compliant listing banned from Zillow, Trulia and StreetEasy on June 30. The portal has been sending warnings through phone calls and emails, which point brokers to Zillow’s FAQ and a dedicated support email.
READ INMAN’S ZILLOW LISTING BAN FAQ
A Zillow spokesperson declined to answer questions on how many non-compliance notices they’ve sent, how many agents have received more than one non-compliance notice, and whether they’ve hired extra staff to send notices and handle inquiries from brokers who need additional guidance. However, the spokesperson did confirm the voicemail and email screenshot in real estate strategist Mike DelPrete’s latest blog post about Zillow Group and Compass’s battle over private listing networks.
Zillow Group’s non-compliance warning | Credit: Mike DelPrete
Zillow Group said its roll-out strategy centers on giving brokers enough time to understand and comply with the ban, which is based on the National Association of Realtors’ Clear Cooperation Policy.
The ban doesn’t impact “coming soon,” office exclusives, or Delayed Marketing Exempt Listings (DMEL) as long as brokers are adhering to NAR’s guidance for each listing status, Inman’s ban FAQ explained. For sale by owner (FSBO) listings and rental listings won’t be impacted by the ban. New construction listings sold by the builder are also exempt, unless they are listed with a broker under an exclusive listing agreement, in which case, they’ll also be held to the new standards.
Zillow Group said it will begin enforcing the ban in phases, going nationwide by the end of the summer. The portal will not retroactively ban listings that received warnings before the June 30 deadline.
“These listing access standards are how we’re implementing NAR’s Clear Cooperation Policy on Zillow sites and reflect our belief in fair access for all,” Zillow Group said in a previous Inman article. “The standards apply to listings regardless of any applicable MLS rule. They apply to all listings subject to an exclusive for-sale listing agreement between a broker and a seller and therefore do not apply to builder inventory represented directly by the builder, rental listings, or for sale by owner listings.”
“This notification period is designed to give agents ample time to understand and ensure they’re complying with the new listing access standards so all publicly marketed listings can reach the broadest audience of home shoppers online,” they added.
The non-compliance warnings have heightened anticipation about the brewing battle between Zillow Group and Compass, which have become fierce rivals in the debate over PLNs and how much control sellers and listing agents should have over disseminating listing data. A few brokers on X, the platform formerly known as Twitter, have even gone so far as to dub the conflict the “Zillow-Compass War.”
“If they don’t have your inventory, it puts their business model at risk,” Compass CEO Robert Reffkin said during the brokerage’s annual conference on Wednesday. “This is the most important moment in real estate history. This is about choice versus control.”
Seattle-based firm Redfin will start banning listings in September, and CoStar Group is readying itself for an influx of listing brokers with banned listings taking advantage of free access to its new marketing product, Boost.
Meanwhile, Realtor.com is still the outlier — a company spokesperson only revealed in April that the portal is giving “thoughtful consideration” on how to handle DMEL.
Have you received a notice from Zillow or have a comment on the rollout? Let us know in the comments below.
