Redfin (NASDAQ: RDFN) has followed the example set by Zillow (NASDAQ: Z, ZG) in prohibiting some private listings on its platform.
Glenn Kelman, the company’s CEO, announced the policy shift in a blog posting where he declared, “Because we believe that all buyers should be able to see all listings, Redfin.com will not publish any listings that have been publicly marketed before being shared with all real estate websites via the MLS. To encourage home sellers to market their listings via the MLS, Redfin is also asking MLSs to create a coming-soon designation for listings that precludes search sites from showing how long a home has been for sale and at what prices.”
Kelman added the “other brokers” were in favor of coming-soon listings, but only if they limited access to their own agents. But he added that concept “violates the principle established in the last great real-estate anti-trust battle, settled in 2008, that all brokerage customers should be able to see all MLS listings, online or via an agent. And that principle exists for a reason: once brokers give our clients control over how their listing appears online, every client will want that listing to appear everywhere.”
It’s actually not true that “every client will want their listing to appear everywhere.” We have clients all the time who, for varying reasons, do not want their listing displayed on real estate websites like Zillow and Redfin and therefore choose to keep their listing as a broker exclusive.
I have had numerous clients that prefer the private listing network for numerous reasons. It’s a great option for sellers who don’t want to invite the masses into their homes or for sellers who have homes that aren’t quite market ready. Sellers should have the ability to decide how their homes are marketed. It’s up to their Realtors to explain the pros and cons.
Zillow and Redfin are colluding to dictate decisions that are not theirs to make. Property owners working with their brokers / agents should retain decision making authority in connection with their property and listings.
Contrary to their high-minded proclamations, the true motivation of Zillow and Redfin is clear: increasing their control and revenue at the expense of property owners and brokers/agents. At this rate, MLS and brokers/agents not employed by Zillow or Redfin will become irrelevant.
The seller’s should be charging a fee to any sites outside the MLS. This sites are nothing without the MLS.