The US real estate market is facing a potential fragmentation threat as big brokerages like Compass try to limit access to listings. The company’s new strategy allows sellers to test their homes on its website before sharing them with other platforms, including Zillow. This move has sparked concerns that it could lead to a situation where buyers have limited access to available listings.
According to industry experts, the US model of transparent listings is fragile and relies on cooperation between brokers. In contrast, European countries have more fragmented markets where agents often gatekeep their best listings. The MLS (Multiple Listing Service) model has been praised for its efficiency, but it’s also subject to criticism for being outdated and not inclusive.
Compass’ strategy aims to give sellers more control over how their homes are marketed. However, this could lead to a situation where only Compass clients have access to exclusive listings, making it harder for buyers to navigate the market.
Industry leaders warn that if other big brokerages follow suit, it could lead to a domino effect, causing Zillow and other search portals to struggle with comprehensive listings. The MLS model is already complex, and adding more fragmentation could make it even more challenging.
Despite these concerns, many experts agree that buyers value the ability to find homes easily and in one place. They may grumble about Zillow’s power or the accuracy of its Zestimate but appreciate the convenience of browsing all listings on a single platform.
As the debate continues, some industry insiders are calling for caution and urging against disrupting the current system. They point out that the US real estate market is notoriously slow to change, and consumers have become accustomed to the current setup.
Source: https://www.businessinsider.com/real-estate-listings-zillow-america-europe-france-italy-house-hunting-2025-8