The debate over private real estate listings is intensifying as brokerages like Compass use exclusive listings to initially market homes internally, limiting exposure to select buyers. Critics argue this practice is exclusionary and damages consumer trust, while Compass defends it as a strategy to give sellers more marketing options. The National Association of Realtors has altered rules to allow more private listing options, sparking further controversy. Major real estate platforms Zillow and Redfin have introduced policies to counteract private listings, requiring listings to be published within a day if marketed. Sellers like Caitlin Bigelow have experienced mixed results, with private listings sometimes leading to lower offers compared to public listings on platforms like Zillow and the MLS.

Compass, a major real estate brokerage, uses a '3-phased marketing strategy' that starts with private listings, which are only accessible to Compass agents, before going public on the MLS and platforms like Zillow and Redfin. This approach allows sellers to test pricing and gauge interest before wider exposure.

Critics, including leaders from other real estate brokerages, argue that private listings are exclusionary, reducing inventory visibility and potentially undermining consumer trust. They claim this practice limits market exposure and could lead to lower offers for sellers.

The National Association of Realtors (NAR) has adapted its rules, allowing more flexibility for private listings by removing the requirement for immediate public marketing on the MLS. This change has fueled the ongoing debate about transparency and fairness in real estate transactions.

Zillow and Redfin have responded to the rise of private listings with new rules demanding that any marketed home listing must appear on their sites within 24 hours. These measures aim to ensure greater transparency and access for all buyers and sellers.

Caitlin Bigelow's experience with her San Francisco condo illustrates the controversy; she initially accepted a private offer but later realized a public listing on the MLS led to higher offers. This highlights the potential drawbacks of private listings for sellers seeking maximum exposure and price.

Compass CEO Robert Reffkin has defended the strategy, stating that private listings are not designed to capture commissions on both sides of a deal but to follow client-driven needs. He introduced a new plan to share private listings with other brokerages through a physical book available at Compass offices.

The debate reflects broader tensions in the real estate industry regarding transparency, consumer choice, and the impact of private listings on market dynamics, with differing opinions on whether these practices ultimately benefit or harm consumers.