Off-Market Real Estate Listings Spark Battle Between Industry Heavyweights

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News Flash

The Battle of the Listings: Real Estate Giants Square Off Over "Private" Sales

A significant rift is emerging within the U.S. real estate industry over the increasingly contentious practice of marketing homes privately.

At the center of this showdown is Compass, one of the nation's largest brokerages, which is aggressively promoting "private exclusives" – listings shown only to select agents within their network, completely bypassing Zillow and traditional MLS databases.

Compass argues these private listings give sellers more control and discretion. Don't like the offer? No public record of your property languishing on the market. Perfect for high-net-worth clients or anyone craving privacy.

But Zillow and competing brokerages aren't having it. They claim private listings reduce market transparency and potentially lead to homes selling below true market value by limiting buyer exposure.

Zillow has implemented policies penalizing or excluding non-MLS listings, while smaller brokerages complain the practice creates an uneven playing field that favors large networks like Compass.

This clash highlights a fundamental industry question: In the digital age, should real estate transactions prioritize seller privacy or market transparency? Your answer likely depends on which side of the transaction you're representing.

Pricing Tech Misstep? Opendoor Shells Out $39 Million to Investors

Online residential real estate platform Opendoor has agreed to a $39 million settlement to resolve a class action lawsuit brought by investors.

The lawsuit alleged that the San Francisco-based company misled investors regarding the capabilities and accuracy of its proprietary technology used for pricing homes bought and sold through its platform.

Opendoor denies any wrongdoing despite the hefty payout, claiming the settlement decision was simply to avoid further legal costs and uncertainties.

The real question: Can AI-driven property valuation models be accurate enough to support an entire business model?

Sources: [Source], [Source]

More You Should Know

• HELOC Withdrawals Soar: U.S. mortgage holders have accessed the highest volume of home equity lines of credit since 2008, totaling nearly $25 billion in the first quarter of 2025, driven by record home equity levels and declining HELOC rates. [Source]

• Inventory Soars, Sales Fall: Despite housing inventory reaching a five-year high with over 1 million homes for sale, home sales have declined due to elevated mortgage rates and economic uncertainty keeping buyers on the sidelines. [Source]

• US CRE Transaction Volume Falls: Despite a notable 22.3% decrease in transaction volume for U.S. commercial real estate in Q1 2025, the average price per square foot rose, signaling a potential stabilization for the market, as reported by Altus Group. [Source]

• Ninth Circuit Revives Real Estate Lawsuit: The Ninth Circuit Court of Appeals reinstated a class-action lawsuit against a real estate syndicator for alleged misrepresentations in investment materials, a decision that could significantly impact real estate crowdfunding and syndication businesses, especially those engaging with unaccredited retail investors under Regulation A. [Source]

• May Housing Starts Drop: Despite a notable decline in new residential construction starts in May, building permits remained largely stable and housing completions increased, presenting a nuanced picture for the housing market. [Source]

• Mortgage Rates Tick Up: Mortgage rates climbed to 6.817% on June 17, 2025, driven by market anticipation of the Federal Reserve's policy decision and persistent inflation, leading to buyer hesitation amid expected rate volatility. [Source]

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