What’s Going On Between Compass and Zillow?
You may have seen news stories lately about a fight between the real estate company Compass and the home search giant Zillow. The argument centers on something called the Clear Cooperation Policy, a rule created by the MLS (Multiple Listing Service). Some of the news articles covering this are missing key insights—likely because the writers aren’t real estate professionals and may be relying too much on the messaging from one side or the other.
First, What Is Clear Cooperation?
The MLS is a shared database REALTORS® use to advertise homes for sale. It’s designed to give every agent access to all available listings so buyers get maximum property exposure.
The Clear Cooperation Policy was introduced to prevent agents from secretly marketing homes to a limited group, often through private platforms or within their firms, before making them available on the MLS. This off-market selling, sometimes called “pocket listings,” can limit competition and reduce a seller’s chance of getting the best price.
While MLS policy’s stated goal is fairness and transparency, the deeper reason is likely to protect the MLS’s relevance. If agents stop using the MLS and rely only on their own networks, the whole system becomes less valuable.
Why Off-Market Listings Are a Problem
Off-market listings are like messages stored in a private inbox you rarely check—you might miss them entirely unless you’re actively looking. That’s called “pull” technology.
On the other hand, MLS listings are like notifications “pushed” straight to your phone—they show up automatically, and you see them right away.
When a home is listed off-market, only a limited group of buyers hear about it. That usually means less exposure, fewer offers, and lower competition, which can hurt the seller’s bottom line.
While we sometimes use off-market listings during the prep phase of a sale (like while staging or photographing the home), we don’t keep them that way for long, because limiting market saturation usually isn’t in the seller’s best interest.
What Compass Is Doing
Compass, a large real estate brokerage, is trying to keep more of its listings “in-house”, meaning it only shares them with other Compass agents. This gives them a shot at representing both the buyer and the seller in the same deal—what’s called dual agency—and collecting oftentimes double the compensation.
Here’s the issue: When your agent is part of a dual agency deal, their legal fiduciary duty to act only in your best interest becomes divided. They can’t fully advise you against the buyer’s offer or suggest ways to negotiate, because they’re also obligated to the buyer through another agent at their brokerage.
Why This Matters to You
If you’re selling your home and your agent is pressured to keep your listing within their own company (like Compass), you may lose:
- Wide exposure to all potential buyers.
- Unbiased advice about offers or pricing.
- The chance to spark competitive bidding that could raise your sale price.
Compass argues that off-market buyers might pay more to avoid competition, but if that’s true, why not open the listing up to everyone and see who offers the most? That’s what’s fair—and likely to get you the best result.
The Bottom Line
Compass wants more control over listings and commissions. Zillow and the MLS want to keep all listings publicly accessible so the system stays fair and competitive. Neither party is purely looking out for you, the client—they’re both protecting their business models.
As always, the best decision is one that puts your interests first, not your agent’s brokerage.
Drew and Christine Morgan are experienced as BROKER, REALTORS, and NOTARY PUBLIC located in Belmont, CA, where they own and operate MORGANHOMES, Inc. They have assisted buyers and sellers in their community for over 30 years. Drew and Christine have received the coveted Diamond award and ranked among the top 50 agents nationwide and the top three in Northern California by RE/MAX. To contact them, please call (650) 508.1441 or emailinfo@morganhomes.com.
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This article provides educational information and is intended for informational purposes only. It should not be considered real estate, tax, insurance, or legal advice; it cannot replace advice tailored to your situation. It’s always best to seek guidance from a professional familiar with your scenario.
BROKER | MANAGER | NOTARY
