Private listings and networks remain a hot-button issue in real estate, one where sharp lines are being drawn—with MLSs playing a critical role. Recently, Compass announced a partnership with Midwest Real Estate Data (MRED) to bring that MLS’s private listing network nationwide. Other MLSs, such as Tennessee’s Realtracs, have also gone national, even if the move has garnered mixed reactions from real estate industry insiders.
However, this national expansion of private listing networks is happening at the same time as lawmakers across the country are also taking notice. States including Washington, Wisconsin and Connecticut passed or are on the verge of passing bills mandating that any listings on private listing networks must also be listed on a public platform. The bills specify that a public platform includes but is not limited to an MLS; a consumer-facing website, for instance, is also sufficient.
Compass CEO Robert Reffkin has said these laws do not impact Compass’s marketing strategy, but MLS leaders are still largely in support of the law.
Justin Haag, CEO of Northwest MLS (NWMLS) reiterated the MLS’ support for and compliance with the Washington law—taking effect June 10—in comments to RISMedia.
“NWMLS has proudly championed market transparency for decades, with members sharing all listings with all brokers and all consumers,” said Haag, adding that the legislation “simply codifies that standard—ensuring that when a home is marketed for sale, it is available to all buyers and all brokers.”
Notably, Compass sued NWMLS over its rules that restrict private listings, and the MLS and mega-brokerage have gone back and forth in court as to whether the new law makes Compass’s marketing practices illegal.
“NWMLS members already comply with the new law, as our existing rules reflect a longstanding commitment to full transparency and equal access to listings,” Haag continued. “NWMLS rules and the new law ensure an open, fair, and comprehensive marketplace for residential properties that promotes competition and fair housing.”
Chris Lambrou, CEO of Wisconsin’s Metro MLS, also voiced support for the Wisconsin legislation (which takes effect Jan. 1, 2027) in correspondence with RISMedia.
“Much of Wisconsin Act 69 aligns with existing MLS policy. The differences are relatively minor, such as MLS entry timing requirements of one business day versus 48 hours, but the focus on consumer and agent protection is important and welcomed,” said Lambrou.
“Metro MLS has promoted this type of disclosure for years through required seller forms. Our focus now will be on educating agents about the regulatory requirements these practices now carry and how proper disclosure helps protect both consumers and real estate professionals from potential litigation.
“Private, off-MLS listings have existed for decades and typically account for less than 1% of available housing inventory. Metro MLS will continue supporting firms that utilize these marketing strategies, provided they operate within the guardrails of state law and MLS policy,” Lambrou continued. “Metro MLS’s public message is clear: no marketplace manipulation, no bad actors, no greed dressed up as strategy.”
SmartMLS
Michael Barbaro, president of Connecticut’s SmartMLS, spoke with RISMedia about the Connecticut legislation. While at press time the bill had not yet been signed into law, SmartMLS still voiced support for it.
“We like the bill. We think it needs to go a little bit farther. We don’t think it goes far enough, but it’s definitely one of the stronger bills I’ve seen across the country,” says Barbaro. When asked in what ways the legislation doesn’t go far enough, Barbaro voiced criticism of the concept of “private listings” as a whole: “It’s a really nebulous kind of a term though, isn’t it? So how do you market something privately?”
The Connecticut bill offers a significant exception for public marketing—as long as the seller signs a state-created disclosure form, the property can be marketed privately. That form, however, informs the seller (among other things) that a privately marketed property “may result in fewer offers” and “may adversely impact the final sale price and terms of the sale.”
“What we believe at SmartMLS is, look, if someone has a situation where they don’t want their home actively and publicly marketed, and I think people leave out that term ‘actively,’ that they should be allowed to do that,” Barbaro continues. “But in that case, it needs to really be things like one-to-one communications, calling other people. But I need to caution people in those situations. We really need to be careful that you don’t have a disparate impact and violate someone’s rights under the Fair Housing Act, either the Federal Fair Housing Act or Connecticut.
“So we just think that when a house becomes available and someone wants to market their property, it should be available to everybody to see, to have the opportunity to bid on the home. And we just don’t think any closed groups are beneficial to anyone in that transaction. And quite frankly, I don’t see how a seller is hurt. If a seller says, ‘Well, I really don’t want the highest offer. I would like to take less money,’” Barbaro added.
During the conversation, Barbaro indicated that SmartMLS is and will be taking a more active role in lobbying on legislation that it considers relevant to MLS practices.
“Up until now, it’s been, particularly here in Connecticut, it’s been our state association of Realtors® that’s kind of led the way on that. They have the apparatus in place, they have lobbyists,” says Barbaro. “MLSs have never really had to have their own representation, but it is something that SmartMLS is going to be more involved in the future because we think some of the issues are now really coming over into MLS territory as opposed to things that are more germane to the association, taxation and property rights and so on and so forth.
“So as the industry continues to what I consider devolve, not evolve, I think it’s just more important for the people on the front lines, the MLSs, to have a voice in the discussion and the conversation,” Barbaro continued.
