Compass goes retro with launch of ‘Private Exclusives Book’
The brokerage, which has been scaling up its private inventory, will now offer physical and digital listing books to share with agents and consumers.
Key points:
- Compass says the exclusive listings books allow competitors and consumers to see what homes are being pre-marketed before going to the MLS.
- “If Compass’ goal were to double end deals, it would keep office exclusives in-house,” the company said in the announcement, responding to critics of its private listings push.
- Some industry leaders have expressed concerns about fair housing, warning of a return to an era where inventory was fragmented and access was limited.
Compass announced May 1 that it is launching a new digital — and physical — "Compass Private Exclusives Book" this month that will allow consumers and agents to see the brokerage's private listings that are not yet available on the MLS.
The goal, the company said, is to provide more transparency and highlight Compass' willingness to co-broker and collaborate "with the entire brokerage community."
Addressing feedback from critics
Compass has been hammering home its message on seller choice when it comes to private listings, arguing that it's sellers who want the option to pre-market and test the waters before going to the MLS. Many critics, however, counter that keeping inventory private and off the MLS could harm buyers and sellers, and goes against the cooperative ethos of the MLS system.
In announcing the new listings book, Compass appears to be responding to claims that the brokerage is leaning into private listings as a way to capture both sides of a transaction. The company also addressed concerns about fair housing and potential discrimination
"If Compass' goal were to double end deals, it would keep office exclusives in-house as NAR's Clear Cooperation Policy allows, but instead Compass is trying to share its private exclusives with the entire brokerage community," the announcement reads. The listings book is open and available to "any potential group of buyers, regardless of race, color, religion, sex, familial status, national origin, disability, or other characteristics protected by the Fair Housing Act and other civil rights statutes," the company added.
Compass also said that through the launch of its private exclusive books, it "is now the only brokerage that is sharing off-MLS listings with the entire brokerage community." The physical books will be updated throughout the week, the announcement said, while the digital version will reflect private exclusive inventory in real time.
Everything old is new again?
But is Compass' approach an innovation — or a way of soft launching its own alternative to the MLSs? The brokerage says the initiative "reimagines the spirit of the original MLS books" from prior decades by putting all of its private listings in one place while "respecting the privacy, security, and marketing strategies of today's sellers."
Critics of Compass' private exclusives effort have often cited the risk of returning to an era before the internet and brokerage cooperation, a time when inventory was fragmented and consumers had to go into a physical brokerage office to find out what was for sale in their neighborhood or pick up home listing books at grocery stores.
"This is exactly what I've been warning would happen — one group of people keeping properties away from others. It raises serious concerns about fair housing, equal access and fiduciary responsibility," eXp Realty CEO Leo Pareja said to Real Estate News in reaction to Compass' Private Exclusives Book initiative.
Compass CEO Robert Reffkin took his pitch for the company's 3-phase marketing strategy to cable news on Tuesday, telling CNBC anchors that "almost half of our sellers — over 10,000 sellers this year — elected to start their home as a private exclusive or coming soon." Investors appear to approve of the direction Compass is heading. Compass stock was trading for $7.88 on May 1, reflecting a 35% increase year-to-date.