A Real Estate Giant is Suing Zillow. Here’s What You Need to Know.
UPDATE: Zillow has officially responded with something along the lines of “you don’t have to work with us if you don’t want to.”
My take? I'm partially the "Michael Jackson eating popcorn" meme, and partially the "This is fine" burning room meme. My buyers ultimately benefit from policies that will show them more available homes, but I also believe that my sellers have a right to market their home the way that they want to (although Compass doesn't serve Utah—yet). Zillow shrugging and saying "that's fine but you can't play with us" is truly disruptive and is giving MAJOR monopolistic vibes. Maybe it will backfire and consumers will diversify their searches away from Zillow, but I'm betting it won't.
Obviously, companies have the right to set user policies as they see fit. However, they also have a responsibility to play fair when they get to be this influential. That's why we have antitrust laws.
See the original post below:
Compass is Not Happy.
Compass is a high-end, tech-driven real estate brokerage that targets luxury and urban markets. Think of Compass as the Apple of real estate brokerages: design-focused, innovative—and occasionally controversial. One of its key differentiators is its use of private, off-market listings that are exclusive to its platforms. This means that they list a LOT of homes that can’t be found on the MLS… or on Zillow. Most of the time, these private listings only remain private for a few weeks before officially hitting the market.
⚖️ What's the Lawsuit About?
Zillow's New “Ban” Policy
As of late June 2025, Zillow requires any home publicly marketed (e.g., via a yard sign, broker email, or social media) to be entered into the MLS and syndicated to Zillow within one business day—or else it’s removed from Zillow and Trulia.
Compass’s Grievance
Compass claims this policy unfairly targets its three-phase listing strategy—publicly teasing homes on Compass’s internal platform before MLS—calling it an anticompetitive, monopolistic move.
What's at Stake
Compass wants a court injunction to stop Zillow enforcing the ban and is seeking damages. Zillow stands by its policy, saying it promotes market transparency and prevents “secret listings” that disadvantage buyers.
🏠 Why This Matters
1. Seller Experience
Sellers working with Compass may prefer to soft-launch on Compass.com before going public.
Zillow’s policy could limit those marketing options, forcing sellers to choose between jumping onto Zillow quickly, or being banished from the most popular listing site forever.
2. Buyer Visibility
Buyers may miss listings that are held back from the MLS, forcing them to juggle multiple brokerage sites.
Zillow argues limiting listings reduces transparency and could harm smaller brokerages and first-time buyers.
3. Agent Positioning
The outcome could reshape how agents list homes—whether in MLS first or via private strategies.
Agents may need to rely more on network-specific listings or tailor strategies based on where they list.
🌐 Broader Implications
Antitrust implications: If courts side with Compass, platforms like Zillow may be restricted from penalizing off-market listings.
Pressures on MLS standards: States may revisit standard “clear cooperation” rules and how private listings are treated.
Shift in consumer habits: Buyers and sellers may need to check multiple platforms, making real estate search less centralized.
🧠 What You Should Know as a Buyer or Seller
Sellers: If you prefer a soft launch or exclusive preview, ask your agent how Zillow’s rules may impact strategy.
Buyers: Be aware that not all listings may appear on Zillow—working with agents who offer early access can help.
Stay tuned: A court decision could shift industry norms around listing windows, transparency, and site exclusivity.
💯 Bottom Line
This lawsuit highlights a bigger debate: transparency vs. exclusivity in real estate. Zillow says buyers deserve open access. Compass says sellers deserve marketing flexibility. The court’s decision could shift how homes are listed—and discovered—going forward.
Interested in how this might affect your own listing strategy or buyer outreach? I can walk you through alternatives and the latest updates as they unfold.
Hi. I’m Erin.
My first passion is my family: my 3-year-old, my partner, and my two dogs. My second passion is reaching the moment when my clients realize that their next phase in life is a reality, that it’s really happening—they have successfully bought or sold a home.
It's a great honor to be an advisor during the home-buying or selling process, and I'm dedicated to navigating the market with my clients every step of the way, from pre-approval, to financing, to location strategy, to selecting the perfect place to call home.
As a Millennial who experienced the 2008 recession, I deeply understand the emotional nature of homeownership and wealth-building. With honesty and integrity at the forefront, I seek to educate and empower my clients through clear communication, transparent advice, and experience-driven data, ensuring they're able to make confident, timely decisions.
Hope to hear from you soon,
Erin Maresko
(385) 302-2973
erin.maresko@theperry.group
The Perry Group | REAL Broker, LLC
