Real Estate

Lawmakers are moving to limit classified listings in Washington

Under the proposed bill, a seller is not allowed to market a residential property for sale or rent to a “limited or exclusive group of buyers or sellers,” without simultaneously marketing the property to the general public and all other sellers. Additionally, the bill also states that “seller’s representatives must market the property to all members of the public and all other brokers and must not market the property to a special group of buyers or sellers.”

However, the bill includes a carve out to allow limited marketing of the property, allowing the practice when “reasonably necessary to protect the health or safety of the owner or occupant.

Washington Realtors has come out in support of the bill, which has bipartisan support and is sponsored by State Senators Marko Liias (D), Chris Gildon (R), Jessica Bateman (D), Emily Alvarado (D) and John Braun (R).

In an emailed statement, a spokesperson at Washington Realtors told HousingWire that the association is committed to credit communication and policies that support association members and their clients.

“The purpose of this proposed rule is to promote transparency, fairness and equal access to the real estate market by requiring all listings to be publicly marketed and available to all sellers,” the spokesperson wrote. “Our top public policy goal has always been to build economically strong communities and attractive and affordable housing options – our North Star through our advocacy efforts is making Washington a more pro-consumer state to buy and sell real estate. Washington Realtors supports this bill because it’s another step toward that goal.”

Washington is not the only state taking legal action aimed at the use of private listing networks. In early December, Wisconsin Governor Anthony Evers signed what was previously known as Assembly Bill 456 into law.

Under the new law, which is scheduled to take effect on January 1, 2027, local public marketing is an acceptable default. According to the law, which shows many features The National Association of Realtors (NAR) Clear Partnership Policy (CCP), a property listed by a licensed real estate professional must be widely marketed online within one business day of the listing agreement unless the seller affirmatively opts out by completing and signing a disclosure and opt-out form created by the state Department of Real Estate.

In a post about the law, Jennifer Lindsley, Wisconsin Realtor Association’s director of legal services and licensing, wrote that, what was then a bill, focused on transparency, including the seller’s right “to know exactly how their home will be sold,” and acknowledging that they “must make that decision with a full understanding of the consequences.”

Marketing transparency

“How much property should be marketed has become a hot topic in real estate. Proponents of broad exposure argue that it ensures fairness, transparency and competition — giving all buyers an equal opportunity to see available listings,” Lindsley wrote. “Some believe that sellers should maintain marketing flexibility in private, limit displays or pursue key strategies. This rule achieves balance by giving sellers control and ensuring that they make informed decisions.”

Zillowwhich instituted its listing standards policy last April that prohibits properties on its site from being publicly advertised more than 24 hours before they are available for display on other IDX or VOW data feed sites, also told HousingWire that it supports both the Washington bill and the new Wisconsin law.

“We are pleased to see Washington introduce a bill that will allow it to join Wisconsin as a national leader in establishing consumer protections to ensure that everyone has fair and open access to real estate listings at the same time,” a Zillow spokesperson wrote in an email. Hidden listings make real estate more difficult by making it more difficult for buyers to navigate the market and causing sellers to miss out on potential properties, and leaving smaller brokerages at a disadvantage. Zillow believes that public listings benefit everyone, whether you are a buyer, seller, agent, or part of the real estate industry as a whole, and we support policies and programs that align with that belief.”

Compass speaks out against the bill

Unsurprisingly, The compasscurrently suing Zillow, and Kirkland, Washington-based Northwest MLS (NWMLS), through their respective listing policies, called the bill “a veiled attempt by NWMLS and Zillow to preserve their market power by limiting homeowner choice and limited competition, harming sellers and agents alike.”

When asked about its involvement in the bill, a Zillow spokesperson reiterated that the listing giant supports the bill. A NWMLS spokesperson did not comment on MLS’s involvement in the drafting of the bill, but wrote that MLS supports the legislation.

“For years, Northwest MLS has supported industry and state laws to increase transparency for buyers and improve the real estate process in Washington. Northwest MLS shares the concerns related to secretive listing networks expressed by Senator Elizabeth Warren and Senator Ron Wyden in their recent letter to US Department of Justice as well as Federal Trade Commission,” the spokesperson wrote.” Therefore, the Northwest MLS fully supports Washington Realtors’ efforts to develop a legal framework in Washington to promote fair housing, improve transparency, and ensure buyer and seller access to real estate listings.”

A Compass spokesperson added the business “believes Washington homeowners deserve the same flexibility to choose when and where to market their homes as homeowners in every other state.”

“All other districts offer flexibility that allows homeowners to check prices, get important property information, maintain their privacy and confidentiality and make an early demand without public price reductions or days on the market,” the spokesperson wrote in an email.

The spokesperson also noted that the company “fully supports” and complies with all fair housing laws.

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