Washington private listings bill could soon be the law 

A bill in Washington state prohibiting certain private marketing practices passed both legislative chambers this week and now heads to the governor's desk for a signature.

The bipartisan legislation — SB 6091 — was introduced in January and prohibits "marketing residential properties to an exclusive group of prospective buyers or real estate brokers" unless it is also broadly marketed to consumers and other agents at the same time. The bill allows for exceptions when "necessary to protect the health or safety of the owner." 

How we got here: As some large brokerages, most notably Compass, have leaned into pre-marketing and private exclusives, industry leaders and state lawmakers have increasingly raised concerns about the divisive strategy. 

In Washington, Northwest MLS — which covers most of the state — already prohibits pre-marketing, but that didn't stop Compass from testing its "private exclusives" approach in the Seattle area last spring. The brokerage is suing NWMLS over its policy.

Zillow, also based in Washington state, has been among the most vocal critics of private listings. Last year, the company began barring listings that had been publicly marketed but not made widely available via the MLS or listing feeds — a move that prompted more litigation from Compass, which sued the search giant in June. A judge has allowed Zillow to continue enforcing its ban while the case proceeds. 

Promoting an open marketplace: The bill, which passed with a nearly unanimous vote, has a number of industry supporters in the state.

Washington Realtors has been a staunch advocate of the legislation, saying it advances the association's efforts to make Washington "the most consumer-friendly state in which to buy and sell real property." The enactment of SB 6091, the organization added, "will promote transparency, fairness, and equal access in the residential real estate market."

NWMLS echoed that sentiment in an email to Real Estate News, with CEO Justin Haag emphasizing that for-sale listings "should be available to all consumers and all brokers — not merely a select few." 

The "legislation will ensure that consumers and brokers in Washington will continue to benefit from an open, fair, transparent, and comprehensive marketplace," he added.

Zillow published a blog post on March 5 saying it was "thrilled to celebrate the passage" of the bill.

"We support SB 6091 because it aligns with our desire for buyers to be able to compete for homes that would work best for them, for sellers to have access to the broadest possible market, and for small businesses to have the conditions to thrive," Zillow wrote. 

OB Jacobi — co-president of Seattle-based Windermere — also praised the move, saying state lawmakers are "sending a clear message: transparency still matters." As the bill awaits the governor's signature, "I want to commend the Washington Realtors and our state legislators for standing up for an open marketplace that protects both buyers and sellers," Jacobi told Real Estate News. "I hope other states are watching closely and will follow Washington's lead."

States take on private listings: Several states have already passed or proposed similar legislation, including: 

• Illinois, where a bill was reintroduced in February that would require listing brokers to market a property on a publicly accessible online platform within one calendar day of securing a brokerage agreement with the seller — unless the seller opts out via a designated disclosure form. Zillow and NAHREP were partners on the original bill.

• Wisconsin, where a new law was enacted in December requiring public marketing of listings within one business day unless a seller officially opts out.

• Hawaii, where a bill with language similar to the Washington state legislation cleared committee on March 3.