Amidst the rapidly accelerating multi-front war over real estate listings, the most important player may have just made its first move.
Tech giant Google has started a “controlled experiment” to include real estate listings in sponsored search results, according to HouseCanary, a property data company that is working with Google to provide listings to the search engine, seemingly placing detailed property information directly in front of users who search for things like “homes for sale” in a given region.
In a LinkedIn post yesterday, HouseCanary wrote that it is “innovating, pushing into new territory, and we think this is exciting for the industry when done the right way.
“Before this test started, we contacted and notified every MLS in the regions included. We are working with those MLSs directly and we have active, ongoing communication with them throughout the test. If an MLS has questions or concerns, we address them directly and promptly.”
The test is seemingly limited to a few markets, according to screenshots shared across social media, though other details were not immediately available. HouseCanary did not immediately respond to voicemails and emails requesting comment. Google did not immediately respond to an emailed request for comment.
Google placing listings directly on its search page represents a significant and potentially complicated shift in how consumers access listings. Screenshots appear to show that the listings include property details as well as a way to contact an agent, similar to what the portals do.
It was also not immediately clear how the display fits into the complex web of rules regarding how listings can be displayed.
In its post, HouseCanary said that the “goal” of its partnership is to “improve how consumers discover listings while staying aligned with the rules and expectations of the MLS community.”
“We are excited about what we are building with Google, and we are equally committed to doing it the right way with the MLSs and other stakeholders. We will continue to communicate directly with the MLSs involved and respond quickly to any concerns,” the company wrote.
Based on screenshots shared across social media, two of the MLSs seemingly part of the experiment are MRED, based in the Chicago region, and REColorado, covering most of the Denver metro area. Both these MLSs have bucked norms in recent years, with REColorado stoking controversy when it was sold to a private owner last year, and MRED currently squaring off with Zillow over its internal private listing network.
Neither MLS responded to RISMedia’s inquiries at press time.
In a blog post that he linked under the HouseCanary post, Victor Lund, managing partner of the MLS consulting firm WAV Group claimed that the arrangement seemingly violated “long-standing real estate licensing laws.”
“As the industry has already debated with portal-to-AI integrations, a Google search results page is not the broker’s display,” Lund wrote. “When listings appear inside paid Google ads, they are being promoted, targeted, and monetized in a third-party environment that sits outside the IDX framework. IDX consent does not transfer to Google, nor to any advertiser using Google as the distribution channel.”
NAR did not immediately respond to a request for comment or clarification.
This is a breaking story. Stay tuned to RISMedia for updates.
