A significant dispute has arisen between the Bay Area’s largest home brokerage, Compass, and the online real estate giant, Zillow. This conflict could influence how home buyers search for properties and even their ability to view certain listings. The core issue revolves around Compass’s approach to privately marketed homes, often referred to as “pocket listings.” Last year, Compass introduced a program enabling sellers to transition their listings from private to public gradually. Sellers begin with the “Private Exclusive” phase, where listings are shared only with Compass agents or sometimes other brokerages. This is followed by the “Coming Soon” phase, making the property visible on Compass’ website before being fully shared publicly. Compass argues this strategy benefits both buyers and sellers by reducing competition and allowing sellers flexibility in preparing their homes for the market. However, critics, particularly Zillow, claim this setup disadvantages buyers and sellers, suggesting it’s an attempt by Compass to monopolize home sales and commissions. Zillow has even pledged to ban listings using Compass’ phased marketing approach, potentially forcing sellers to choose between Compass’ flexibility and Zillow’s broader exposure. — new from San Francisco Chronicle
