Zillow will retain access to Realtracs listings — for now
The Tennessee-based MLS threatened to cut the portal's feed on June 1 because it was violating Realtracs’ IDX rules. Zillow now has another week to comply.
Key points:
- Contrary to threats made last week, Realtracs is continuing to send its listing data feed to Zillow as of June 1.
- The move comes less than two weeks after MRED cut its listing feeds to Zillow. A judge has temporarily restored access to the MRED feeds.
- Realtracs said it is seeking a new license agreement with Zillow that focuses on compensating brokers for their work to bring new listings to the market.
Zillow will be allowed to keep its access to Tennessee-based Realtracs' data listing feed — at least for another week — contrary to the multiple listing service's promise to suspend the portal's feeds today over compliance violations, as the companies continue negotiations over how listings may be displayed.
No disruption for at least 1 more week
Realtracs announced in a press release on June 1 that Zillow would continue to receive access to the MLS's listing feed until June 8, which is when the portal's current license with Realtracs will expire.
That means that at least for the next week, brokers, agents, homesellers and homebuyers will not experience any changes in how (or if) Realtracs listings are displayed on Zillow.
The two companies are actively negotiating, Realtracs said, since Zillow is currently in violation of the MLS's updated IDX display rules. Those rules were revised on April 29 to stipulate that all listings "that match a consumer's search criteria" — including those previously marketed to a select group — "must be returned by Vendor's consumer search results," unless the seller has indicated they don't want their property to be included for public display.
A new licensing agreement focused on broker control
Realtracs said that one of the primary goals of a new licensing agreement with Zillow would be to ensure "brokers are compensated for their use of their listing content" — a reflection of the work brokers put into getting new listings on the market.
The idea that brokers own listing data is in line with a statement the MLS released in mid-April that asserted brokers should have rights around copyright infringement and the unauthorized use of their listing data. Realtracs at that time also introduced a new brokerage service agreement and data licensing model.
Realtracs President and CEO Stuart White said in a statement that the MLS's commitment is to its brokers and agents and the clients they serve — not any specific business model.
"That means protecting seller choice, recognizing the value of broker-created listing content, and providing a platform that encourages cooperation while preserving flexibility and opportunity for everyone involved in a transaction," White said.
Unfolding tensions
Last Wednesday, Realtracs sent an email to broker members notifying them that Zillow was in violation of the MLS's IDX display rules, following revisions that took effect May 13. While all other home search sites fell in line, the letter noted, Zillow did not. The portal was given until May 31 to comply but wasn't expected to do so because its own listing access standards block listings that have been selectively marketed.
Brokers do, however, still have the option of making listings visible on Zillow via The Broker Only Export, Realtracs noted, and has provided instructions for how to do so online.
What Zillow had to say
A spokesperson for Zillow said the portal was "glad" that Realtracs-serviced agents and consumers are still able to access listings through Zillow.
"We remain hopeful that we can find a path forward that keeps Nashville listings visible to the millions of buyers who search Zillow every month," the spokesperson said. "Our commitment to transparency in real estate is unwavering and we believe it is possible to honor that commitment while continuing to serve the Nashville market together."
A familiar story
Realtracs revised its IDX display rules a day before announcing that its service was expanding nationwide — a move that Chicago-based Midwest Real Estate Data (MRED) similarly made one week earlier. As with MRED's announcement, Compass International Holdings was a launch partner for Realtracs' national push, with United Real Estate also signing on for the Realtracs deal.
On May 12, Zillow sued MRED and Compass over alleged pressure to reinstate Compass listings that violated Zillow's listing access standards. Shortly thereafter, Zillow said that MRED was threatening to cut Zillow off from its listing data feeds, which the MLS did on May 20. A judge has since granted a temporary restraining order reinstating the feeds.
When asked about the continued negotiations between Realtracs and Zillow, a Compass spokesperson stressed the brokerage's familiar argument of "seller choice," reiterating that agents and their clients should determine what marketing strategy works best for them.
"Can you imagine Google banning everyone that advertised outside of Google? Or Amazon banning everyone who had a private garage sale?" the Compass spokesperson said. "That is the precedent Zillow is trying to set."
Realtracs reiterated in a press release published on Monday that if a new agreement cannot be reached before Zillow's current license with Realtracs expires on June 8, the portal's access to Realtracs' data feeds will be cut off.