MLS holdout shifts marketing strategy suddenly

The Northwest Multiple Listing Service (NWMLS) has introduced a new “First Look” listing option, which allows homesellers and listing brokers to publicly market listings for up to 21 days before they enter active status. This move appears to be a shift in the MLS’s stance on pre-marketing and private listings, as it had previously been a vocal advocate of full-market transparency.

NWMLS President and CEO Justin Haag said the new listing option is an effort to balance seller flexibility with market transparency in a time of changing industry conditions and evolving consumer expectations. The First Look status gives brokers the option to host showings and publish the listing on Internet Data Exchange (IDX) websites during the pre-marketing period.

Background on the NWMLS’s stance on pre-marketing

Prior to announcing First Look, NWMLS had a long-held policy prohibiting pre-marketing and supported a bill restricting the use of private listings in Washington state. The bill, SB 6091, was signed into law earlier this year and promotes market competition and fairness by ensuring that a home listing is accessible to everyone when it is marketed for sale or for rent.

Haag had characterized the new law as promoting market competition and fairness, but the introduction of First Look seems to run counter to this stance. However, Haag told reporters that the new listing status aims to balance seller flexibility with market transparency and was not a response to pressure from any one brokerage.

The new state law and its implications

Washington state’s recently enacted law prohibits marketing residential properties to an exclusive group of prospective buyers or real estate brokers, unless the residential property is also concurrently marketed to the general public and other real estate brokers. The law does not include language about listing portals, private listing networks, or multiple listing services, nor does it provide definitions for “private” or “public” marketing.

Given that First Look listings must be submitted to NWMLS and all of its 30,000-plus broker members at the same time that marketing of the listing begins anywhere, the rule change is unlikely to run afoul of the law, according to industry experts. Alloy Advisors Co-founder Russ Cofano told reporters that NWMLS’s approach to what an MLS is, and to its core value proposition, was tested over the course of its 16-month-long legal battle with Compass.

Potential impact on the industry

Now that one of the last major pre-marketing holdouts has developed its own pre-marketing solution, it is likely that other smaller MLSs will follow, according to Cofano. The introduction of First Look may force Compass into a more transparent direction, as its 3-phased marketing approach is quickly becoming a 2-phased marketing approach, with the private exclusive category going away.

Cofano sees the First Look status, paired with the state’s new law, as a way to perhaps force Compass into a more transparent direction. Haag, on the other hand, views NWMLS’s move as an effort to adapt to a changing market while preserving important tenets, such as consumer choice, broad access to housing inventory, and fair competition among all brokerage firms.

As the real estate market continues to evolve, it is likely that other MLSs will introduce similar pre-marketing solutions, leading to a more standardized approach to pre-marketing across the industry. The introduction of First Look is a significant development in this regard, as it marks a shift in the NWMLS’s stance on pre-marketing and private listings.

Justin Haag believes that the new listing option will provide sellers with more flexibility while maintaining market transparency. He also thinks that the move will help to promote fair competition among brokerage firms.

Russ Cofano notes that the introduction of First Look is a significant development in the real estate industry. He thinks that other MLSs will likely follow suit and introduce similar pre-marketing solutions.

NWMLS’s move is a significant development in the real estate industry. The introduction of First Look marks a shift in the organization’s stance on pre-marketing and private listings.

First Look is a new listing option that allows homesellers and listing brokers to publicly market listings for up to 21 days before they enter active status. The option gives brokers the ability to host showings and publish the listing on Internet Data Exchange (IDX) websites during the pre-marketing period.