The ongoing rivalry between real estate technology companies has intensified as CoStar Group’s CEO Andy Florance criticizes Zillow’s recent policy changes regarding private listings. In a letter addressed to real estate agents, Florance accused Zillow of
overreaching in its decision to prohibit certain private listings from its platform.
Florance reassured agents that listings blocked by Zillow would remain visible on alternative platforms, including CoStar’s Homes.com, Redfin, and Realtor.com, which collectively reach over 418 million monthly visitors. However, Redfin has since aligned with Zillow’s position, with CEO Glenn Kelman announcing that Redfin.com will also cease publishing listings that aren’t shared through the Multiple Listing Service (MLS) after being publicly marketed.
The controversy stems from Zillow’s announcement to restrict listings that are publicly marketed but not broadly distributed via the MLS. Errol Samuelson, Zillow’s chief industry development officer, emphasized their belief that marketed listings should be accessible to all potential buyers. Research conducted by Zillow and Bright MLS indicates that off-MLS listings result in higher costs for consumers, with a disproportionate impact on communities of color.
In his response, Florance positioned Homes.com as more agent-friendly, highlighting their “Your Listing, Your Lead” approach, which ensures agents receive exclusive credit for their listings. He criticized Zillow’s business model, characterizing it as “lead diversion” and accused the company of profiting by selling leads to competing agents.
Realtor.com has taken a more measured stance, indicating they are carefully evaluating the situation while expressing support for listing cooperation to maintain market fairness and maximize exposure for sellers. Meanwhile, Redfin’s Kelman proposed that MLSs create a new “coming-soon designation” for listings that would prevent search sites from displaying sale duration and pricing history.
The dispute follows the National Association of Realtors’ March 25 decision to maintain its Clear Cooperation Policy while introducing Multiple Listing Options for Sellers. Florance opposed this
development, arguing that real estate portals should maintain neutrality.
Taking a strong stance against Zillow’s approach, Florance encouraged agents to contact the U.S. Department of Justice if they believe Zillow’s requirement to list properties within 24 hours constitutes anti-competitive behavior. He characterized Zillow’s actions as a “heavy-handed attempt” to leverage market power over agents.
This conflict highlights the growing tensions between major players in the digital real estate space as they compete for market share and influence over industry practices. The debate centers on fundamental questions about market accessibility, fair competition, and the role of technology platforms in shaping real estate transactions.
The outcome of this dispute could have significant implications for how real estate listings are shared and marketed across digital platforms, potentially affecting agents, buyers, and sellers throughout the industry. As major platforms take different positions on listing policies, the industry appears to be at a crossroads regarding the future of property marketing and digital real estate services.