Northwest MLS (NWMLS) reportedly shut off its internet data exchange (IDX) listing feed to Compass earlier this week. RISMedia confirmed the report with Compass. As of today, NWMLS has reinstated the feed after Compass agreed to comply with its rules.
The shut-off of NWMLS’ IDX feed to Compass.com meant that any non-Compass property listed by the MLS after the shut-down was not available on Compass.com.
Cris Nelson, regional vice president for Compass, told RISMedia that “despite following NWMLS’ published rules, Compass’ IDX feed was suspended without warning—impacting our clients and agents alike. NWMLS is a broker-owned MLS and is the only MLS in the country that prohibits agents from marketing a property on the internet—privately or publicly—unless it’s listed in the MLS.”
Nelson pointed to the launch of Compass’s compliant Private Exclusive marketing strategy, which created listing agreement options that “since the founding of NWMLS in 1984, have not been eligible for submission into the MLS.”
“After one week of dozens of Compass clients launching Non-Exclusives, NWMLS bypassed the ‘NWMLS Bylaws and Rules Committee’ process and changed a rule that has been around for decades to force non-exclusives into NWMLS,” she stated. “And after two weeks of dozens of more Compass clients launching unenforceable listing agreements, compliant with NWMLS rules, NWMLS suspended Compass’ IDX feed with no warning.”
According to Nelson, this action from NWMLS was “a stark example of monopolistic control, with NWMLS having 100% market share of real estate agents; that limits homeowner choice, stifles competition and sets a dangerous precedent for broker accountability and market fairness.”
NWMLS said in a statement to RISMedia that the shut-off was the “result of Compass’s 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.”
“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 organization stated. “Northwest MLS worked with Compass on April 15th and 16th to facilitate Compass’ compliance with Northwest MLS’s rules.”
NWMLS confirmed that the data license has been reinstated as of today, April 17, due to Compass’ “commitment that it would comply with Northwest MLS’ rules going forward.”
This development follows the recent brewing of a potential lawsuit against NWMLS by a group called Washington Homeowner Rights, backed by Compass.
The website for the group—which Compass confirmed it created—solicits homesellers who experienced a public price drop, stayed on the market longer than expected and were unable to protect their privacy during the sale.
The argument of this potential lawsuit boils down to NWMLS’ use of the Clear Cooperation Policy (CCP). Washington Homeowner Rights alleges that NWMLS’ ban of pre-marketing and off-MLS marketing leaves sellers “no choice but to fully expose their listing immediately—leading to longer days on market and price reductions that may hurt their bottom line.”
Compass CEO Robert Reffkin and NWMLS President and CEO Justin Haag have been outspoken about their opposing views on CCP, with Haag in support and Reffkin against the policy.
A Compass spokesperson previously said the company is “proud to support Washington homeowners,” and added that “the NWMLS system wasn’t built to serve homeowners—it was built to preserve the power of the NWMLS.”
A recent Instagram post from Reffkin featuring a quote from law firm Crowell & Moring LLP, which lists antitrust law as one of its specialties, affirmed this stance. Nelson also reaffirmed the company’s position is her statement to RISMedia:
“Homeowners in Washington State are asking why they are the only ones in America without a choice in how they sell their homes. Compass, representing $1.5 billion in annual residential sales in the state, is standing with them to demand the same rights and advantages that sellers across the country already enjoy.
In every other state, homeowners can choose how and when to market their property before it goes public. They can test pricing, sell discreetly due to personal circumstances like divorce or security concerns, or create early interest before officially listing.
But in Washington State, a private trade group—the NWMLS—has created the most restrictive pre-marketing policy in the country. NWMLS is controlled by Windermere, representing more than 30% of the market, and holds six board seats when no other brokerage has more than one.
Compass agents in the area have seen firsthand how these restrictions hurt sellers. Unlike in other states, Washington homeowners are forced into a one-size-fits-all approach that can weaken their negotiating power and reduce their home’s value.”
Nelson also shared Compass research that supports its stance on the value of private exclusive or coming-soon listings:
- Pre-marketed homes were associated with an average 2.9% higher close price.
- Pre-marketed listings received accepted offers 20% faster, on average, after listing on the MLS.
- Listings that were pre-marketed were about 30% less likely to experience a price drop after listing on the MLS.
