Zillow’s “ban” of private listings is soon coming into effect, with the portal releasing details today of how its controversial Listing Access Standards will unfold.
The standards—which were created to be compliant with NAR’s much-debated Clear Cooperation Policy—have been a hot topic in the industry since they were announced in April. Since then, Zillow has continued to double down on its decision, stating that “if a listing is marketed to some buyers, it should be marketed to all buyers.”
In a new release, Zillow stated that it will start rolling out the new standards in phases across large U.S. markets first before expanding nationally over the summer.
Specifically, as of May 28, Zillow will start notifying agents/brokers if a listing violates access standards. “Each non-compliant listing will be logged as a single violation and the listing agent will be notified directly on each violation.”
Blocking of listings in violation of Zillow’s standards won’t begin until June 30, with the ban going into effect upon an agent’s third non-compliant listing—and any subsequent ones. At this juncture, the agent’s listings will be blocked from Zillow as well as Trulia.
Zillow further explained that agents and brokers who commit violations will still be allowed to share compliant listings on the portal, and will not be blocked from sharing future listings because of a previous violation.
Clarifying its policy, Zillow stated that “a listing publicly marketed to some buyers must be entered into the MLS within one business day for distribution and display on Zillow as well as other sites that receive MLS feeds so all sellers and buyers in the market can access it freely.”
The new standards do allow office-exclusive listings as long as they have a signed seller disclosure, and the office exclusive is limited within a single brokerage company.
“Coming soon” and delayed-marketing listings are allowed if they are MLS entered within one business day. Sneak-peeks are also permitted as long as they don’t include details that could make it a listing (such as a call to action and details such as price and address).
In terms of what isn’t allowed per Zillow’s new listing standards, first and foremost, publicly marketed listings that aren’t MLS entered within one day are considered non-compliant, the portal explained. Listings that are selectively shared to buyers outside of pre-existing brokerage clients are also banned, as this limits access and creates an unfair advantage, according to Zillow.
Agents and brokers are also not allowed to publicly market that off-MLS listings are available to those buyers who are willing to work with that agent or brokerage.
In its agent FAQs, Zillow breaks down public marketing as the following:
“Promoting, marketing or advertising a listing in any manner, which can mean flyers, yard signs, social media, public-facing websites or apps, emails, printed mailers, newspapers, open houses, previews, showings, multi-brokerage listing-sharing networks, virtual tours and brokerage private listing networks to the extent such listing network is publicly marketed and/or accessible to consumers, including those accessible only to a brokerage’s clients behind a registration wall. Public marketing is also defined as consumer-facing marketing about the existence of inventory only available by working with a specific agent or brokerage.”
Zillow also noted that the new standards will not affect new-construction listings, For Sale by Owner listings or rental listings.
Making the case for privacy
The big question coming out of today’s release is how do sellers who want privacy go about it under Zillow’s new standards? The portal stated that paths already exist for this option.
“Homeowners can choose to have their home posted on the MLS and opt-out of internet display so the home is still shared with MLS participants,” the release said. “Homeowners can hide their address and still publish a home for sale in the MLS and across other sites that receive MLS feeds.”
Zillow added that a path also exists for a completely private listing, stating that a seller “should be fully informed of the tradeoffs and agree in writing,” and the listing must meet the following conditions:
- The seller gives written instructions directing their agent not to disseminate the listing in the MLS or online.
- The listing is shared only in 1:1 communication between agents within the same brokerage and shared 1:1 to their individual clients.
- The listing itself or the existence of it is not marketed publicly in any way.
- The seller signs a waiver or opt-out form that includes information about the decision as well as potential drawbacks of keeping the home off of the MLS or widely online. The form will clearly direct the agent not to publicly market the home.
To see the complete Listing Access Standards, agents and brokers can visit Zillow’s Terms of Use.
