‘Unfiltered’: The inside scoop on Zillow’s new listings rules 

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On this episode of Real Estate Insiders Unfiltered, Zillow Chief Industry Development Officer Errol Samuelson explains why he believes the home search site's new standards for listings place the company "on the right side" of the seller choice debate.

Weeks after the National Association of Realtors announced it was keeping its controversial Clear Cooperation Policy but adding a delayed marketing option for sellers, Zillow said it was choosing to implement the CCP by barring listings that are publicly marketed but not widely shared via the MLS.

The move has been divisive, garnering endorsements from brokerage leaders at eXp, NextHome, Redfin and West USA Realty, and criticism from CoStar CEO Andy Florance and Compass' Robert Reffkin, who accused Zillow of engaging in anticompetitive business practices. From Samuelson's point of view, Zillow's new standards are "pro-consumer."

"We're confident that we are on the right side of this," he said. "Sellers do have choice. But we think that they need to have informed choice."

More transparency, less risk: NAR's decision on CCP "proves the point" that transparency is essential for buyers and sellers, Samuelson said. The fact that sellers who opt for delayed marketing must sign a disclosure also "made it really clear that there is some risk to sellers," he added, citing Zillow and Bright MLS studies that have suggested off-MLS listings typically take longer to sell, and may sell for less.

Zillow's position? "More transparency is good," Samuelson said. "We can work within the confines of this new policy, and that's what we're going to do."

Respecting privacy, or double-ending deals? There are "legitimate reasons" for some sellers — such as celebrities or other public figures — to list privately, and Zillow is fine with those scenarios, Samuelson said.

But when brokerages market homes to small groups without making the listings widely available, "the privacy argument goes out the window," Samuelson said. 

"They're using that listing to essentially attract agents, attract buyers — and if they sell it inside the private network, double-end the commission."

The strategy, which Samuelson said causes "consumer harm," is "fundamentally bad" for the industry. "Once one brokerage does this, it's only a matter of time until other brokerages feel pressured to do the same thing."

'Truly private' and Coming Soon listings allowed — with caveats: Zillow's policy will not affect "truly private listings" solely marketed within the brokerage, Samuelson said.

"Delayed marketing or coming soon listings are also not impacted by the listing standards, so long as number one, they're in the MLS, and number two, they're available for public display," he explained.

Not OK? Selective marketing: Zillow isn't "looking to catch anyone unaware," Samuelson said, adding that the portal would prefer not to restrict any listings. 

"Really, the only listings that would get impacted by this are listings initially in a broker's private network. That broker is out there marketing those listings to some buyers — but hasn't put those listings in the MLS, hasn't shared those listings with other agents, other brokerages — and then later decides, 'Well, oops, that didn't work. Now we're going to put it in the MLS,'" Samuelson explained.

When Zillow flags a listing that violates its standards, it won't appear on Zillow — at least, not as long as the seller's brokerage agreement stands. "If the listing were to expire and the property was relisted at a different brokerage, then that sort of resets things, and that listing would be allowable to be showed on Zillow," Samuelson said.

But is it legal? Compass CEO Robert Reffkin has been one of Zillow's loudest critics, accusing the company of "bully behavior" and suggesting the new listing standards are anticompetitive and "an abuse of monopoly power." Samuelson disagrees.

"The key under IDX is, it has to be objective criteria, and you cannot discriminate," he said. "If I said, 'I'm not going to show listings from brokerage A, but I will show listings from brokerage B,' that's a clear violation of IDX rules."

Samuelson says Zillow's new standards don't do that. "It doesn't matter what brokerage you're with; this is our criteria for which listings we're going to display. And that is completely allowable under IDX."