The future of Zillow and Compass as ‘See It First’ goes live 

Last week, real estate professionals both affiliated and not affiliated with Compass International Holdings reacted to an Illinois judge's ruling that denied Zillow's request for a preliminary injunction against Midwest Real Estate Data (MRED).

But the ruling could have ripple effects beyond Chicagoland, where MRED is based. Some think it has the potential to change how Zillow and Compass operate as corporations, which could have significant impacts on the residential real estate market across the U.S.

How the ruling could reshape the market

The Sept. 15 ruling by U.S. District Judge John J. Tharp may embolden MRED, Compass and other like-minded industry players, but a final ruling has not been made in the case, although the court has directed the parties to pursue arbitration. 

And although the court determined that MRED's listing syndication rules are not in violation of antitrust laws or that it entered into an unlawful group boycott of Zillow with Compass, the court also made no claims about Zillow's listing access standards being anticompetitive.

In the wake of the ruling, some industry observers, including Rob Hahn and Jonathan Miller, have floated the idea that Compass and Zillow may attempt to cross over into new territory, with Compass aiming to become one of the industry's dominant portals and Zillow looking to become something like a MLS.

Brokerage, portal and MLS lines blur?

At NAR NXT in 2024, Compass International Holdings Chairman and CEO Robert Reffkin actually suggested as much, telling the audience, "My view is that Zillow is going to be the MLS. It's only a matter of time." In the same panel discussion, which included Zillow's Errol Samuelson, the portal executive stressed Zillow's support of the "incredibly pro-consumer" MLS.

In a conversation with Real Estate News last week, Grigory Pekarsky, co-founder and managing broker of Vesta Preferred Realty, suggested that Compass is trying to become the dominant source for listings and control how consumers shop for homes. 

"Zillow was the name brand," Pekarsky said. "They even had an SNL skit about it … Right now what's happening is this internal struggle for changing up a model that has worked very well. If this goes to a place where listing access goes less and less from a portal [consumers] have enjoyed using, it's going to impact consumer trust … and it's just going to confuse."

It's unclear if either company is likely to win the fight for listings dominance, but both have been jockeying for influence in recent months. 

Case in point: In New York City, where Compass is based, the brokerage is battling StreetEasy, a Zillow-owned home search platform and the metro area's leading portal. Earlier this month, Compass went so far as to offer a $1,000 digital marketing package to New York City agents who removed active and in contract listings from StreetEasy — the firm's way of  boycotting new rules rolling out on the platform that seek to curb selectively marketed listings.

'See It First' highlights Coming Soons — but not Exclusives

On Sept. 22, Compass announced a significant redesign of Compass.com, including a new trademarked phrase: "See It First." According to the company, the website now shares listings from "every stage of marketing" across all nine of its brands, without displaying days on market or public price drops. Buyers do not need to be clients of a Compass-affiliated agent to view listings, Compass said, and listing agent names and brokerage affiliations are prominently displayed on their listings.

Coming Soons searchable: When asked if "See It First" would replace the 3-phased marketing strategy Compass has been touting for the last few years, a Compass spokesperson said the new tagline would bring early-stage listings "under one recognizable brand." In browsing the redesigned website, it appears that publicly viewable See It First listings are in the coming-soon phase, and an Instagram comment from Reffkin — "Coming soon...See it First" — appears to support that observation. 

Exclusives still hidden: When asked to clarify whether consumers would still need to contact a Compass agent or register on Compass.com to access Compass Private Exclusives — listings in the first phase of the 3-phased strategy — the spokesperson reiterated that "buyers do not need to work with a Compass real estate professional to view these listings."

Upon navigating the updated site, however, Real Estate News saw that Compass.com still includes the so-called "black box" registration link at issue in Compass' former lawsuit against Zillow. Consumers are invited to "get early access" by registering, after which Compass will "connect you with a local expert who can give you access to exclusive inventory." Below the link, Compass specifies that "listings are only private online" and that "buyers & agents can access in our offices or by contacting Compass." 

On the See It First homepage, the website also states that some listings are "available only when you work with a Compass agent."

Zillow's balancing act

Zillow has made its own moves to maintain its standing as the country's leading home search portal. Just before MRED temporarily cut its listing feed, for example, Zillow promoted a workaround allowing agents and brokers to submit their listings to the portal directly in the event of a feed suspension.

But if Zillow wants to continue to work with MRED in Chicago and publish listings held by MRED-subscribed agents located elsewhere, it will also now face a choice about how to enforce or adjust its listing access standards.

In a blog post published after the ruling on its preliminary injunction request, Zillow did not specify how it might adapt its operations, and a spokesperson said they were unable to elaborate at this time. The post emphasized, however, that "we remain committed to fighting for a fair and transparent housing market."