There’s been some big news in the real estate world this week. Compass has filed a lawsuit against Zillow. The issue? Compass says Zillow is punishing agents who offer private or “pocket” listings by blocking them from posting on the platform. It’s a bold move that could impact how we all market homes, so we wanted to break it down simply and share what this might mean for agents and clients.
- What’s the conflict?
Compass has filed a lawsuit against Zillow alleging Zillow enforced “exclusionary policies” that retaliate against competing brokerages. They claim that Zillow permanently bans listings from agents or brokerages who also offer “private” or “pocket” listings not publicly shared .
- What are private ("pocket") listings?
These are homes marketed privately to a select group of buyers (often high-net-worth or celebrity clients) before they’re listed on public MLS platforms. Compass and other brokerages argue this offers sellers more control and flexibility. Zillow and critics say it limits transparency and potentially leads to lower home prices .
- Zillow’s response
Zillow has implemented a policy to ban agents from listing on their platform if they participate in private listing programs that conflict with public marketing rules. They claim this protects consumers by ensuring all listings are widely visible. Agents are given "three strikes" before permanent removal .
- Compass's lawsuit
The lawsuit alleges this ban is an antitrust violation, arguing that Zillow used its dominant market position to suppress affiliate brokerages and reduce competition. Compass claims Zillow is penalizing them for offering additional seller options.
- Why it matters for agents
* Listings Strategy: Will private listings become more viable or remain risky?
* Online Visibility: Zillow remains a major consumer channel - what happens if you're removed?
* Brokerage Differentiation: Brokerages are defining themselves by how they manage access and exclusivity.
What’s Next?
* The lawsuit is new so expect legal proceedings, public hearings, and news coverage to unfold in the coming months
* Watch for policy changes from Zillow or updates from brokerages like Compass, Redfin, or Realtor.com
* Consider how listing transparency and platform alignment fit your clients and local market dynamics
At FastForward Movement LA, we stay ahead of crucial real estate developments. Whether Compass or Zillow makes changes tomorrow, we’re monitoring the landscape and ready to adapt our strategies for our agents and clients so no opportunity is missed.