Compass has ignited a fierce industry clash in a housing market already weighed down by high mortgage rates and sagging sales, and the future of how Americans buy and sell homes may hang in the balance.
The residential real-estate powerhouse wants home sellers to keep their listings private, at least for a while. But this quiet move is speaking volumes, as it pits Compass against heavyweights like Zillow and Redfin, and has buyers, sellers, and industry veterans sounding the alarm.
The heart of the conflict? Control. Specifically, who gets to see a home first, and who gets shut out.
A Close Call in Cole Valley
San Francisco homeowner Caitlin Bigelow nearly made a $100,000 mistake and she knows it.
When she listed her two-bedroom condo in the serene, tree-lined neighborhood of Cole Valley, her Compass agent urged caution. Based on comps, he wasn’t sure it would clear $2 million.
Still, Bigelow believed. She hoped for $2.1 million.
Two days into Compass’s “premarketing” when the listing was shown privately to Compass agents and their clients, that offer came in. But then, it vanished.
No deal.
Most sellers would panic. Bigelow didn’t. “It actually turned out to be a blessing in disguise,” she told.
When her home was finally posted publicly on Redfin, Zillow, and other portals, over 2,000 potential buyers viewed the property online in the first six days. More than 60 separate groups came to open houses.
The final sale price? $2.15 million, with the buyer even covering his agent’s $55,000 commission fee.
Compass vs. Zillow: An Industry Showdown
Bigelow’s story is now a cautionary tale, and a battle cry.
Compass wants a new rulebook. Its vision: allow listings to stay private for several days, available only to Compass-connected buyers before appearing on platforms like Zillow.
Zillow, meanwhile, isn’t having it.
“If you are selectively marketing the listing to some buyers, [and] to try and encourage buyers to work with your brokerage to get access to the hidden listings, or if you’re using those listings as a means to get both sides of the commission, it’s that kind of practice that harms consumers,” Errol Samuelson, Zillow’s chief industry development officer, told. “It’s a matter of fairness … Zillow’s entire purpose for being was to provide transparency.”
In short: Compass is betting on exclusivity. Zillow is betting on access.
Private Listings, Public Concern
Compass insists it’s not trying to hide homes. CEO Robert Reffkin says the brokerage just wants more flexibility and less control from traditional listing systems like the MLS (Multiple Listing Service).
Compass has even filed lawsuits, alleging that MLS rules limit homeowner choice and stifle innovation.
But critics say the change would be disastrous. Zillow has already warned it will block Compass’s “premarketed” listings from appearing later on its site. And given that Zillow receives over 200 million monthly visits, that’s no idle threat.
Compass: ‘We’re Not the Villains’
Compass strongly rejects the idea that it’s being secretive for profit.
“There is a persistent false narrative suggesting the motivation behind Compass Private Exclusives is to double-end deals, which couldn’t be further from the truth,” Reffkin said.
The company claims it shares all “premarketed” listings with the broader agent community and that most eventually hit the public market.
The Data Doesn’t Lie — Or Does It?
According to Bright MLS, which handles listings across the mid-Atlantic, private listings don’t offer any pricing advantage. In fact, they usually take longer to sell.
Their analysis of 100,000 home sales found no meaningful benefit to going private.
“An increase of office exclusive listings has the potential to harm prospective buyers and sellers,” the company said in a statement.
Buyers Left in the Dark
New York agent David Bibian saw the downside firsthand.
He was working with a buyer interested in Manhattan’s West Village, but couldn’t locate a unit that, as it turned out, had been privately listed through Compass.
“I couldn’t find it on my system,” Bibian told.
The buyer had to sign a separate contract with a Compass agent just to view the home and ended up walking away from the property entirely.
Should You Sell Your Home Privately?
Private sales aren’t new. But they’re becoming more common and more controversial.
So when does it make sense to go off-market?
Do you want the biggest return?
Go public. If you want the top price, list it broadly said Jeff Jackson, a broker with Corcoran Centric Realty.
Do you need to stay discreet?
Celebrities, CEOs, and law enforcement professionals often prefer quiet deals. In some cases, privacy is worth more than profit.
Are you worried about tenants?
If your property is rented, listing publicly might mean unwanted guests or disruptions. Off-market can help avoid those headaches.
The tug-of-war between Compass and its competitors isn’t just industry noise, it could redefine the American home-selling experience.
For now, one question looms large for sellers everywhere: Do you want exclusivity, or exposure?
Because in this market, the answer could cost you six figures.
