Compass is suing the Northwest MLS in alleged defense of homeowner choice, calling the broker-owned listing portal a “monopolist” with the “most restrictive homeowner marketing rules in the country.” The brokerage announced its pursuit in a press release on April 25.

Washingtonians are the only Compass clients in the country who are currently prohibited from using the brokerage’s “Private Exclusive” or “Coming Soon” listing options, the brokerage said. Compass claims that, on average, clients who use these pre-marketing options are more likely to sell their homes faster and for more money, with homes also about 30% less likely to undergo a price drop after being pre-marketed.

The lawsuit is just the latest twist in an ongoing conflict between NWMLS and Compass that followed the National Association of REALTORS’® recent Clear Cooperation Policy update, which allows delayed marketing of listings.

Earlier this month, NWMLS suspended its listing feed with Compass for two days, saying the brokerage failed to add its listings to the MLS as required by its rules. In March, Compass solicited Washington home sellers for a class-action lawsuit against NWMLS.

“Compass is proud to support Washington homeowners who are asking the right question: Why are we the only homeowners in America without a choice in how we sell our home?” said Compass Founder and CEO Robert Reffkin. “The NWMLS system wasn’t built to serve homeowners — it was built to preserve the monopolistic power of the NWMLS.”

Reffkin also said that Compass has seen “strong demand from Seattle homeowners for pre-marketing options.”

After publication, Windermere reached out to Seattle Agent with this response from Co-President OB Jacobi:

“We are confused as to why Windermere Real Estate Services Company was mentioned in Compass’ complaint at all. Windermere Real Estate Services Company is a franchisor, not a brokerage. We certainly do not hold six board seats, as we are not even a member of the Northwest Multiple Listing Service because we are not a brokerage.

That being said, we have the utmost respect for the individuals from Windermere franchise offices and other brokerage firms who generously volunteer their time to serve on the NWMLS board and we have no doubt that they, and the NWMLS as a whole, have, and will continue to operate with integrity, transparency, and in the best interests of consumers.

Additionally, we vehemently disagree with Compass’s stance that the actions of the NWMLS are “anti-client.” On the contrary, we continue to reiterate our position that what would truly be anti-client is a lack of transparency brought on by a blanket policy that encourages private listings, creating what amounts to a secretive network that only benefits the privileged few, and the Wall Street-driven brokerage looking to double-side sales for the benefit of their stock price.

While recognizing that there are certainly occasions where listings need to be private, we believe that there are already contingencies in place that address these one-off scenarios. Study after study has shown that private listings significantly harm buyers, as they are flying blindly through the real estate process if they do not have access to all of the information. Further, it negatively impacts sellers, who in many cases are unknowingly settling for a lesser selling price because the full spectrum of prospective buyers did not have access to their listing. For example, here’s a real seller in San Francisco who nearly lost out on $100,000 because her Compass agent wanted her to keep her home out of the MLS and limit it to their private listing network.

Should any brokerage be allowed to hide a large share of listings behind private portals, to the exclusion of not only other brokerages but also buyers who want a choice as to what brokerage to hire (if any at all), we envision a real estate industry that is divided by silos, just like it was decades ago. That type of environment benefits neither buyer nor seller and especially hurts those from marginalized communities. No one should be allowed to bully our industry into undoing decades of progress towards a more fair and equitable housing environment for everyone.”