Zillow Strikes Back Against Exclusive Inventory

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Zillow just announced a new policy: if a home is publicly listed for sale in a private network, it will never appear on Zillow.

Zillow’s new policy states that a listing marketed to ANY buyer must be available to EVERY buyer.

  • Listings must be in the MLS and published on Zillow, as well as other sites that receive MLS feeds, within 24 hours of being advertised publicly.
     

  • And listings that don’t meet these standards won’t be published on Zillow and Trulia for the life of the listing. 

Why it matters: This is a big deal and acknowledgement that exclusive inventory is a significant threat to Zillow.

For anyone closely watching and thinking a few steps ahead, this is a logical move on Zillow’s part.

  • Op-eds, opposing research, and rousing speeches haven’t stopped Compass from growing its exclusive inventory, and other brokerages following in its footsteps.
     

  • NAR is on the sidelines. And it will take years for any legal challenge to take shape. Zillow is the only player able to take action, and it is.

Power play: Zillow is flexing its considerable muscle to defend itself, stop what it sees as bad behavior, and take a strong moral stand to maintain a fully open and transparent marketplace. Finances aside, this move is aligned with Zillow’s values.

Zillow is effectively forcing agents to make a choice, but the ultimate deciding force in this battle isn’t the portal, the brokerage, or the agent – it’s the consumer.

  • And this move is precisely and strategically aimed at that critical juncture, forcing agents to explain to a home seller why their listing will never be on Zillow, the country’s most popular real estate website, if they decide to list in a private network.

For months people have been asking who could possibly stop the rise of exclusive inventory.

  • While all eyes were on NAR, the obvious answer was in plain sight: the consumer.
     

  • And Zillow’s move is aimed squarely at pulling them into the discussion.

What to watch: Quite simply, the following chart, which shows the total number of Compass Private Exclusives and Coming Soon listings.

  • Zillow's new policy begins May 1st.

 
 

The bottom line: To quote Churchill, this is only “the end of the beginning” in the battle over exclusive inventory.

  • The phase of posturing through words is over.
     

  • Now everyone in the space, from brokers to portals to agents, needs to start making some tough decisions.