Realtracs listings still flowing to Zillow as talks continue 

Despite multiple threats of suspension, Zillow continued to receive Realtracs' listing data feed as of Monday — and is in the clear for now as negotiations between the two companies go on, a Realtracs rep told Real Estate News on June 8.

Last month, the Tennessee-based multiple listing service notified broker members in an email that Zillow was in violation of its IDX display rules and said the portal would lose access to its Realtracs feed if it did not come into compliance by May 31. 

Initially, Realtracs threatened to cut Zillow's feed on June 1 if it did not comply with the revised IDX rules, but the MLS extended the deadline to June 8 since Zillow's existing license agreement was set to expire on that date. Now, it seems, the MLS is willing to continue discussions.

'Productive and progressive' talks with portal partners: Realtracs sent an email to subscribers on Friday, which Real Estate News has received and reviewed, indicating that Homes.com, Redfin and Realtor.com are also in discussions with Realtracs over their licensing agreements. The MLS said that through updated agreements, it is seeking to preserve its core principles of broker ownership of listing data, the overall value of listing data and the need for a modern framework for licensing agreements.

Realtracs told Real Estate News it is "actively engaged in discussions" with Zillow and other portals that are "productive and progressing." 

The MLS said it expects negotiations to extend beyond June 8 and will continue to send data feeds to portals until negotiations end.

Modernizing agreements: Realtracs reiterated to Real Estate News that it is focused on respecting the value of real estate professionals through "modernized agreements" that reflect the hard work done by brokers and agents in the field. 

"The professionals who create that value should have a meaningful voice in how it is sourced and used in today's world of artificial intelligence, data aggregation, lead generation platforms, and large-scale consumer portals," a spokesperson for Realtracs said in an email to Real Estate News.

The MLS previously published a statement in mid-April asserting that brokers are the rightful owners of listing data — a message Realtracs shared in tandem with its release of a new brokerage service agreement and data licensing model.

In its email to subscribers on Friday, Realtracs said, "The future of listing data should be shaped by the professionals who create it, not solely by the companies that consume it."

Zillow listing standards conflict with IDX rule changes: In April, Realtracs updated its IDX rules to specify 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 says they don't want their listing to be publicly displayed.

Zillow's listing access standards, which were rolled out last spring, ban listings that have been selectively marketed prior to being shared broadly.

Realtracs revised its IDX policies a day before announcing that its service was expanding nationwide in partnership with United Real Estate and Compass International Holdings. A week earlier, Chicago-based Midwest Real Estate Data (MRED) made a similar move with Compass as its launch partner.

Realtracs has previously said its rule changes — and the pressure it's putting on Zillow to comply — are in support of "seller choice."

"A seller's right to determine how their property is marketed is a matter of contract between the listing broker and the seller, whether that means broad syndication, limited distribution, or office-exclusive marketing," Realtracs wrote in a letter to brokers in late May.

Looking for 'a path forward': In response to today's reprieve, Zillow echoed a statement it made on June 1 after Realtracs extended the portal's access to its data feed.

"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," a spokesperson for the portal said in an email.

"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."

The legal backdrop: Negotiations between Realtracs and Zillow have played out against an ongoing legal dispute between Zillow and MRED and Compass. 

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 MRED was threatening to suspend Zillow's listing feeds, which the MLS did on May 20. Two days later, a judge granted a temporary restraining order compelling MRED to reinstate the feeds. That order has since been extended and will remain in place pending future rulings.

What Compass had to say: Compass said it was hard to take Zillow's talk about transparency "seriously," given the portal's own treatment of listings. The mega brokerage also reiterated that sellers should have the right to choose the marketing strategy that is right for them.

"Transparency means giving consumers accurate information and clear disclosures about who's providing that information and whether they have a financial relationship with the portal," a Compass spokesperson said. "It does not mean forcing every homeowner to market their property according to Zillow's preferred profit model."

This story has been updated to include comments from a Compass spokesperson.