Compass vs. Zillow: Who Will Reign Over Real Estate?

Compass and Zillow Group are in it to win it – but which company will prevail?

Just about everyone has used or heard of Zillow’s real estate website, and most people are also familiar with Redfin. In another major industry consolidation, Rocket Companies – the Detroit-based homeownership platform and parent of Rocket Mortgage – completed its acquisition of Redfin in July 2025.

Compass now enters the picture as the world’s largest residential real estate brokerage. After completing its acquisition of Anywhere Real Estate in January 2026, the combined company had a network of about 340,000 agents and independent sales associates worldwide. Its portfolio includes Coldwell Banker, Century 21, Corcoran, Sotheby’s International Realty, and other brands. Compass and Anywhere reported about 1.2 million transaction sides on a combined basis for the 12 months ended June 30, 2025. The company also offers integrated services that include title, escrow, mortgage, insurance, and relocation.

Zillow and Compass already exert massive influence over the housing market. Their competition now extends from listing policies and lead generation to antitrust scrutiny and courtroom battles.

It seems that each wants to be the undisputed champion of the homes-for-sale arena.

Compass Under Scrutiny for Private Listings

In June 2026, Compass drew renewed scrutiny over its use of private listings before broader public marketing. Through its Compass Private Exclusives program, sellers may make a listing available within the Compass network before – or instead of – marketing it publicly. Compass says the approach can help sellers test price, timing, and demand while controlling when and where a home appears.

The concern is that, while a listing stays inside the Compass network, Compass-affiliated agents may represent both the buyer and seller. When that occurs, the company can receive revenue associated with both sides of the transaction, subject to applicable agency rules and disclosures.

Once the listing goes public, it has already been offered to an initial audience. Buyers outside that network may have no way to know how the private marketing period performed.

In short, the practice gives Compass greater control over listing distribution and early buyer access. Compass defends the model. Chairman and CEO Robert Reffkin has argued that sellers “should have the right to decide how their homes are marketed and where they are marketed.”

Zillow has pushed back, arguing that broadly accessible listings give buyers and agents greater freedom to compete on equal terms.

Private listings can give Compass agents and clients an early look at a home as it reaches the market. Zillow, which depends on broad listing access, has a strong business interest in keeping those homes visible on its platform.

Both companies say they are expanding consumer choice, but their legal positions have shifted. Compass sued Zillow in 2025 over Zillow’s listing-access standards, then voluntarily dismissed the lawsuit without prejudice on March 18, 2026, after Zillow changed those standards. Zillow filed a separate federal antitrust lawsuit against Compass and Midwest Real Estate Data on May 12, 2026, alleging that the defendants conspired to pressure Zillow over its listing policies. Compass and Midwest Real Estate Data dispute Zillow’s allegations.

States are also moving to regulate private-listing systems.

Private listings typically receive fewer views than public listings. Critics say the practice may benefit the company operating the network more than the seller trying to reach the widest possible pool of buyers. Several states are now responding with disclosure and public-marketing rules.

What’s the Latest on Restricting Private Listings?

New York is the latest state to advance legislation aimed at limiting exclusive marketing of residential properties. On June 1, 2026, the state Senate unanimously approved the Fair and Transparent Real Estate Listings Act after the Assembly had passed it. As of July 10, 2026, the bill had passed both chambers but had not yet been delivered to or signed by Governor Kathy Hochul.

The measure would generally require a seller’s agent to begin broad public marketing within one calendar day after a written listing agreement begins. A seller could opt out by signing a standardized disclosure explaining that restricted marketing may reduce visibility, produce fewer offers, and affect the sale price or timing. The bill also includes a narrow privacy or safety exception.

Without a signed opt-out or an applicable exception, the listing would have to appear on at least one publication, platform, or website broadly accessible to the general public and to licensed real estate professionals representing prospective buyers. Marketing solely through a private network or another restricted-access platform would not satisfy that requirement.

Violations could lead to disciplinary action by the New York Department of State, including civil penalties or suspension or revocation of a real estate license. Each improperly marketed listing could be treated as a separate violation. If enacted, the measure would take effect on the first January 1 following the date it becomes law. The New York State Association of REALTORS® supports the measure.

The public-policy rationale is transparency and equal access to listing information. As more brokerage activity moves online, broad distribution can help buyers see available homes and help sellers expose their properties to a larger market.

Washington’s public-marketing law took effect on June 11, 2026. Connecticut enacted similar public-marketing and opt-out requirements that take effect on October 1, 2026. Lawmakers in other states have also considered related disclosure and public-marketing measures.

If you already have a buyer lined up, a private listing may make sense. Even then – and especially in a sale between relatives – each party should consider independent representation and, where appropriate, legal advice. Real estate agents owe fiduciary duties to their own clients, so clear representation helps protect everyone’s interests.

A Full Docket

Compass’s acquisition of Anywhere Real Estate is also under regulatory scrutiny. Realtor.com reported in June 2026 that the antitrust division of the New York Attorney General’s Office was investigating the merger and had contacted leaders at other New York City brokerages. No enforcement action had been announced at the time of that report.

Separately, the Federal Trade Commission and a bipartisan coalition of state attorneys general, including New York’s, sued Zillow and Redfin in 2025. The complaints allege that the companies entered an anticompetitive agreement affecting online advertising for multifamily rental properties – not for-sale home listings. The cases remain pending, and the allegations have not been proven.

A proposed class action against Zillow raises different concerns. The plaintiffs allege that Zillow’s Flex and Premier Agent programs can mislead consumers about whom they are contacting and pressure participating agents to steer prospective borrowers toward Zillow Home Loans. Zillow disputes the allegations and has moved to dismiss the case. Real Broker and the Frano Team, once named as defendants, were voluntarily dismissed without prejudice in June 2026 after a judge compelled arbitration.

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At the End of the Day

It is another chapter in a continuing saga of upheaval in real estate. Brokerage, listing, referral, financing, and commission practices are likely to change considerably in the years ahead. Technology has been reshaping real estate since transactions moved online, and AI now promises to place even more data and automated tools in the hands of consumers and industry professionals.

Meanwhile, what is in store for the job of a real estate agent? Will AI chatbots become real estate negotiators in the coming decade?

Real estate agents are already adapting as traditional commission structures around 5% or 6% face pressure. Many are offering a la carte services rather than full-service packages and adjusting their offerings to tighter household budgets.

We’re watching and will report to our readers every step of the way.