Portal Wars? Come On, Brokers—Deed Seekers Just Want to See the Homes

This season, the New York City listings portal built by Zillow® has rolled out a feature to let sellers’ agents “premarket” homes for two weeks. During that time, days on the market won’t be counted on the StreetEasy® web portal. Price changes won’t be shown.

StreetEasy’s parent company Zillow calls the feature “a short window to build momentum.”

“Premarketing can help you sell,” urges StreetEasy.

But does it help people find deeds? Or is it another gatekeeper for the real estate industry?

NYC “Preview” and “Coming Soon” Listings: How They Work

How does the StreetEasy preview tool work? The seller’s agent can pick one—only one—of two pre-market modes for each listing. There’s Preview, or Coming Soon.

As soon as the agent selects one of the options, deed seekers can view the listing and set up a tour. Agents can see who is visiting. In other words, StreetEasy Preview lets deed seekers connect directly with the listing agent. Zillow notes that this aspect represents transparency and open access.  

“Coming Soon” entries do show the time and price history of a home for sale. The Preview feature, in contrast, hides the number of days the listing has been posted, and also conceals any price changes and any other modifications that sellers or their agents might apply. The option gives the seller’s agent “flexibility to test and refine your selling strategy” before switching to active status.

Zillow seems to be testing and refining its own strategy. The main Zillow listings site has already been trying out a preview feature, called Zillow Preview, for several months.  

Not a “Private Listing” Feature, Insists Zillow

In the buzz that’s followed StreetEasy’s preview tool, Zillow seems to be saying: What’s not to like? After all, any New York City agent can get a head start constructing a sale, building momentum in the biggest available forum for NYC home seekers.

Customers, though, are likely to wonder how much key information is kept out of their sight when they shop. How much is being held off-record, in test mode, behind the scenes? Who stands to benefit from the difference?

The consumer just wants to find a home.

Zillow and StreetEasy leaders insist that this feature is not the same as a brokerage’s private listing strategy. As they must. For starters, Zillow doesn’t like other brokers using private listings. In September, StreetEasy published a rule that homes for sale have to appear on its platform on the same day they go live on any other channels.  

Other Brokerages Scramble to Compete for NYC Market

This year, a New York state bill was passed. It’s meant to ensure online seekers can view every home that comes up for sale.

The bill has not been signed into law at this point. If the Fair and Transparent Real Estate Listing Act gets signed into New York law, it will direct real estate agents to market properties via the multiple listing service (MLS). This is the current gold standard for transparency. Once a home is on the MLS, the world knows. It’s visible on all the go-to real estate sites. That’s good for all buyers and most sellers.

Those who want to market the home privately still can. The agent will need to have the seller sign a special form. This disclosure form warns the seller about the effects of privacy on a sale. Statistics show clearly that publicity optimizes a sale’s results.

Yet some brokerages seek an edge in the market through private listings. Compass is one of the influential companies that want the option to use private listings. Zillow says no. Brokerages should not use gated networks. StreetEasy, says Zillow, is not a closed network, because consumers can view the listings right on the NYC portal, no brokerage contract required. And small brokerages that don’t have access to sophisticated technology aren’t disadvantaged. Pre-marketing can coexist with transparency, say the Zillow leaders.

But other, more powerful brokerages are not so happy about the reach and power of Zillow’s StreetEasy site. Corcoran, now part of Compass International Holdings, has encouraged New York City home sellers and their agents to ditch StreetEasy. If they do, Corcoran will give them incentives valued at $1,000. For Zillow, the point is to keep StreetEasy’s expansive reach, and not to lose power to Corcoran and its subsidiary brands.

States Join the Fray, Putting Their Own Restrictions on Private Listings

We’ve been watching lawmaking efforts in Washington and Connecticut, which have resulted in bars against secret listings. Wisconsin, too, has introduced a bill to compel transparency in listings.

These bills are all about forcing immediate and open listings, or else directing sellers’ agents to formally disclose to their clients that privately listing their homes will weaken their position and decrease the likelihood that the home will sell for the highest possible price. And real estate agents’ associations across the country have lobbied for the transparency bills.

So has Zillow. Pointing to the states that now have pro-transparency laws, Zillow commends what it calls a movement to demand open listings. Zillow has also filed legal actions in court. It’s been battling Compass in Chicago.

Private listings controlled by Compass, says Zillow, have been offending antitrust law. Some lawmakers have agreed, and have referred to hidden listings as unfair or deceptive trade practices.

Our Takeaway—But It Doesn’t Have to Be Yours

We at Deeds.com are not affiliated with real estate brokerages. We do not stand to benefit from the outcome of the fierce competition among them. But to people seeking deeds, these outcomes matter.

If access to deeds is going to be fair, we need transparency. Deed seekers and home sellers alike should be able to get all the data without being stopped by brokerage-controlled barriers. Today, more than ever, housing availability is vital. States should ensure information transparency, and put the deed seekers first.

Important note: This commentary is provided as food for thought, and not as legal or financial advice. Looking for listing data or help with your listing? An experienced real estate agent in your area can offer guidance to support your goals, in line with your state and local rules.